Figma IPO’s Unexpected Champion: A Charity with 13 Million Shares and a Controversial Backstory That Ignited a Bitter Feud Over Oil Millions

This week, Figma made headlines by going public. Its shares surged by 250% on the first day, bringing in significant profits. However, the biggest beneficiaries from this IPO weren’t the usual tech investors or Figma’s management team. Instead, a charity called the Marin Community Foundation (MCF) emerged as the top winner.

Based north of San Francisco, MCF sold over 13.4 million shares, earning more than $440 million. Interestingly, Figma itself only sold 12.5 million shares. MCF initially received these shares as a donation from Evan Wallace, a cofounder of Figma, who often stays out of the public eye.

Wallace’s gift to the foundation is not a typical action before an IPO. However, similar gestures have occurred in the past. For instance, Mark Zuckerberg once donated $1 billion in Facebook shares to a community foundation. MCF has described itself as one of the largest community foundations in the U.S., focusing on various causes like education and health.

It’s unclear why Wallace chose MCF or if he has a personal connection to it. The shares were transferred to the “MCF Gift Fund,” which allows donors to direct their contributions to specific causes, a practice known for being tax-efficient. This gift highlights the growing trend of wealthy individuals wanting to leverage their wealth for philanthropic purposes.

The history behind MCF is also notable. It stems from the Buck Trust, created in the 1970s when Beryl Buck donated her husband’s oil fortune for charitable use in Marin County. This fund has been embroiled in legal disputes over the years, especially when the foundation sought to distribute money to other parts of the Bay Area, causing a public outcry. In the mid-1980s, the foundation lost its court battle, leading to the establishment of MCF to manage the Buck Trust.

This recent IPO and charitable gift bring MCF back into the spotlight. As the conversation about wealth redistribution grows, the foundation now finds itself linked to a pivotal moment in both business and philanthropy. Wallace’s actions could inspire other tech founders and leaders to follow suit, thinking critically about their legacies beyond just financial success.

In today’s financial landscape, philanthropy is increasingly seen as a moral responsibility among the wealthy. Many experts argue that giving back can create a lasting impact on society. According to a report from Charitable Giving Statistics, donations reached over $471 billion in 2020—a trend that holds potential to increase as businesses go public.

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IPOs,philanthropy,Startups,Venture Capital