OpenAI employees can finally donate equity to charity after 18-month delay

OpenAI has finally activated a program allowing current and former staff to donate their vested equity to charity, a move that could unlock millions of dollars in philanthropic giving. The company sent an email to eligible employees after an 18-month delay that had caused frustration among staff.

For some early employees who received six-figure equity deals in 2019, the share donation option represents a path to giving millions to charity at the company's current valuation. The opportunity comes as OpenAI's stock units, which sold for approximately $430 in a recent tender offer, are now valued at roughly $483. This increase is attributed in part to the recent for-profit restructuring which reduced the nonprofit entity's claim on future profits.

Sources indicate the program is about 18 months overdue. This delay created tension, as charitable equity options are an important tool in the fierce competition for AI professionals, with rivals like Anthropic offering equity donation matching.

The short window provided to employees to decide on donation amounts and details is proving challenging, especially as the company advises consulting tax or financial advisors.

The donation window follows the completion of a major funding round and the finalization of OpenAI's for-profit restructuring last month, which has eased previous restrictions. Past charitable donation rounds occurred in 2021 and 2022, and the recent move addresses years of internal pressure regarding employees' inability to use their stock for philanthropic purposes.