Google Inc. hopes to eclipse its success as a company by committing nearly $1 billion to help solve problems including poverty and environmental destruction.
The Mountain View search engine formally unveiled its philanthropic plans Tuesday with the introduction of Google.org, an umbrella organization charged with making the world a better place.
Google's founders, Larry Page and Sergey Brin, outlined their altruistic vision in a letter last year that was part of their company's high-profile initial public offering. The organization they have created will make contributions to nonprofit groups from a foundation, in addition to funding private companies that promise social change.
"These are broad problems, and we want to take advantage of every way to help that we can," said Sheryl Sandberg, a vice president at Google who has been helping set up the company's philanthropic arm.
In creating this organization, Google joins a number of Bay Area companies including HP, eBay and Chevron that are involved with charitable causes. It also marks Google's efforts to be seen as a good corporate citizen as it combats criticism in some corners of the technology industry that it has become too powerful.
Google has already funded a number of projects, including a business plan competition in the African nation of Ghana in which the winners get cash to start companies. Another donation is helping the Massachusetts Institute of Technology develop computers that cost no more than $100.
Since 2003, Google has also been offering free online advertising on its Web site to worthy causes. To date, the ads given away are worth $33 million, according to the company.
Google's founders, each of whom is worth $11 billion, have yet to contribute personally to their company's philanthropic efforts, according to Sandberg. She said that they haven't disclosed any individual plans for charitable giving and, in any case, tend to be very private about the matter.
Google's funding commitment to Google.org is pegged to the value of 1 percent of the company's stock. The value varies with the firm's share price, and the money will be donated to the organization over a period of up to 20 years.
The higher the shares go, the more Google will commit to philanthropy. Lower share prices will translate into less giving. On Tuesday, Google's shares closed at $306.10, down $4.55. One percent of the shares, roughly 3 million, are therefore valued at $918 million.
So far, Google has funded its foundation with $90 million. At that size, Google.org would be ranked No. 31 in terms of assets among corporate foundations nationwide, based on 2003 and 2004 figures, according to the Foundation Center, a group that tracks philanthropy.
Google has budgeted another $175 million for spending outside the foundation for philanthropy that may not meet the traditional definition of charity, such as the funding of private companies.
Michelle Goguen, a spokeswoman for Omidyar Network, a fund created by eBay founder Pierre Omidyar to invest in companies that promise to bring social change, said of Google's efforts: "We believe business can be a force for social good. We're supportive of others investing in models that profit by creating positive social impact."
In addition, Google will devote 1 percent of its profit to Google.org. In the first year as a public company, Google had $968 million in profit, meaning that just under $9.7 million was earmarked for philanthropy.
E-mail Verne Kopytoff at vkopytoff@sfchronicle.com.
