What Is Our Objective?
To engage entrepreneurs and their companies in philanthropy early on their path to success. To make community involvement a core element of the culture and business philosophy of every company.

How Does EFSE Engage Emerging Companies and Their Employees in Philanthropy?
Under our Founders Shares program, companies make contributions of pre-IPO stock options or issued stock to EFSE. When a participating company goes public or is acquired, the stock value is realized and up to 85% of the proceeds is invested (through a donor-advised fund at a community foundation) in local nonprofits recommended by the donor company. The balance of the donor contribution will fund our venture philanthropy interests in the community and our work with participating companies to help them develop corporate community involvement programs which will permit employees to give something back to the community under their employer's sponsorship.

Is There Any Precedent for This Approach to Entrepreneurial Philanthropy?
Yes. In 1998, the Entrepreneurs Foundation (EF) was launched in California by three of the leading venture capital firms: Mayfield, Kleiner Perkins and Sequoia. The brainchild of venture capitalist Gib Myers, EF has already signed up over 100 companies, liquidated stock worth more than $14 million, assisted over 90 innovative nonprofits and engaged over 9,000 employees in corporate community involvement programs. EFSE is founded on this proven model. We know that the Southeastern entrepreneurial visionaries who have the courage and foresight to start new ventures are exactly the kind of people who will most want to give something back to their communities.

What Benefits Does Your Company Realize by Developing Community Involvement Activities with EFSE?
Participating companies benefit through increased positive visibility and an enhanced image in the community, an enriched corporate culture, improved employee morale and pride, an edge in recruiting and retention and longer term, a stronger community in which to live and work. Becoming a member of EFSE helps to create the depth of corporate community identification which might otherwise take years to build. Employees are proud of their company's community activities and investment and the recognition it justifiably can bring.

How Much Time Is Required of Participating Companies?
We recognize the time and resource constraints facing most early-stage companies. EFSE requires very little time to develop a corporate community involvement plan. The level of corporate community participation varies by company and is up to each company.

How Much Equity Stock Does EFSE Get From Each Participating Company?
The number of shares varies with each company but it generally ranges from one half to one percent of the outstanding shares or it might equate to the number of shares given to a senior executive.

Does the Stock Contribution Reduce the Stock Available to Management?
No. The donated stock options do not come from the management pool. As the pool is replenished, however, everyone shares in minimal dilution.

Doesn't A Contribution of Pre-IPO Stock by an Emerging Company Have a Very Small Impact on the Community?
No. Quite the contrary. A participating company may contribute stock options when its valuation is low, but the ultimate value of the contribution, when realized, can make a truly meaningful impact. There can also be a substantial tax reduction for the company based on the "spread" value on the exercise date.

Will My Company Be Asked To Give Additional Stock To EFSE?
No. We only ask that a company make a one-time, up-front investment.

Can EFSE Work with a Public Company or a Private Company Which Does Not Plan to Go Public?
Yes. We can accept stock from a public company or we can work with a company on a fee basis.

How Do I Get Involved?
Call or e-mail Rhen Cain, President and CEO, at (404) 817-6656 or rhen@the-efse.org, or contact any member of our Board of Directors.