Daffy.org, a fintech platform geared towards charitable giving, has unveiled a new program allowing employees to donate private stock to charitable causes.

In what the tech firm describes as a first of its kind, Daffy's private stock donation program is designed to convert private stock into charitable donations. Figma, a design software company, is taking a pioneering role in implementing the program for its employees.

The program encouraging employees to donate private stock comes at a time of transformation in the landscape of company ownership. Over the last 20 years, the number of US-listed public companies has plunged by more than half, while private companies have proliferated.

Unicorns aren't as rare as they once were: by at least one count, there are now over 700 unicorns – private companies valued at over $1 billion – across the US, collectively worth more than $2.2 trillion. This growth in private companies means more employees receive private stock as compensation, but many struggle to access liquidity or meet financial obligations while these stocks remain unsellable.

Converting Employees' Private Stock Into Charitable Donations

In response to this, companies are increasingly conducting tender offers to provide liquidity for employees. Some of the top valued startups participating in these offers include ByteDance, SpaceX, and Stripe. Daffy's Private Stock Donation Program complements these efforts by encouraging employees to donate private stock either during or after such liquidity events, transforming stock into charitable contributions while also offering tax savings.

“As more private companies conduct tender offers to provide liquidity to their teams, every company should offer a private stock donation program,” Adam Nash, co-founder and CEO of Daffy, said in a statement. “This not only improves employees’ financial outcomes, but also unlocks billions for charity.”

Historically, encouraging employees to donate private stock has been uncommon. Donating private stock has been largely limited to wealthy founders, board members, and venture capitalists. Daffy’s new program simplifies the process, making it more accessible to a broader group of employees.

Read the full article about encouraging employees to donate stock by Leo Almazora at Investment News.