What Is the Impact Exit, and How Does It Work?

When a business changes hands, the outcome is not just financial. Employees find out whether their jobs are secure. Communities find out whether a locally rooted business stays rooted. Founders find out whether what they built gets protected or taken apart.

At Steward Market, we wanted to create something that reflects that reality. The Impact Exit is our answer to it.

The Basic Idea

The Impact Exit is an optional pledge that Steward Market members can make. When a transaction is connected to your participation on the platform, you can choose to contribute 1 to 2% of transaction value or related fees to the Steward Market Impact Fund. That money goes toward supporting the next generation of mission-driven founders and steward-minded buyers.

It is entirely voluntary. It is not a commission, a success fee, or a condition of using the platform. Anyone in the Steward Market ecosystem can participate: sellers, buyers, capital partners, and service providers.

How the Fund Is Structured

The Steward Market Impact Fund is a donor-advised fund (DAF), administered by our partner, Impact Charitable. Contributions go directly to the DAF. Steward Market does not collect, hold, allocate, or report on them.

That structure matters. It keeps the fund independent, transparent, and accountable to its purpose rather than to us. Distributions are governed by an independent investment committee, not by Steward Market.

Where the Grants Go

The fund supports two kinds of recipients.

Steward Acquisitions. Entrepreneurs and operators acquiring or transitioning existing businesses in ways that protect and extend mission, culture, and community value. The fund looks for transitions that:

• Expand employee ownership and shared wealth creation
• Improve environmental and supply chain outcomes
• Increase access to business ownership for people historically excluded from it

Steward Builders. Founders building new mission-driven, profit-for-purpose companies designed from the start to:

• Embed long-term stewardship into governance and operations

• Deliver measurable social or environmental impact alongside financial sustainability

• Expand equitable ownership and wealth creation

Grants are purely philanthropic. No equity, no debt, no board seats.

The Impact Exit Badge

Members who opt in will see an Impact Exit: Committed badge on their listing, which signals their intent to contribute following a closed transaction. Once a contribution is made, the badge updates to Impact Exit: Executed.

The badges are informational. They reflect intent and follow-through, not enforcement or a guaranteed amount.

Frequently Asked Questions

What is the Steward Market Impact Fund? It is a donor-advised fund (DAF) that collects voluntary contributions from Steward Market members and deploys them as philanthropic grants to mission-driven founders and steward acquirers. It is administered by Impact Charitable and governed by an independent investment committee.

Who can participate in the Impact Exit? Any Steward Market member can opt in, including sellers, buyers, capital partners, and service providers. Participation is voluntary and can happen at any point during your membership.

Is the contribution tax-deductible? Contributions to the Steward Market Impact Fund are intended to be tax-deductible as charitable contributions to a donor-advised fund, since DAF contributions are gifts to a public charity. Whether you can deduct the contribution depends on your individual tax situation, including whether you itemize deductions and your adjusted gross income. You should consult your own tax advisor before making any contribution.

Is the Impact Exit required to use Steward Market? No. It is entirely optional and has no bearing on your access to the platform or its features.

How is this different from a broker commission or success fee? A commission is a fee you pay to a third party in exchange for facilitating a transaction. The Impact Exit is a voluntary charitable contribution you make directly to a donor-advised fund after a transaction closes. Steward Market does not receive any portion of it.

What is a donor-advised fund? A donor-advised fund is a charitable giving account held at a sponsoring public charity. When you contribute to a DAF, you receive an immediate tax deduction (subject to IRS rules and your individual situation), and the funds are then granted out to qualified charitable recipients over time. DAFs are a common and well-established vehicle for structured philanthropic giving.

Who decides where the grants go? An independent investment committee governs distributions from the fund. Steward Market does not have unilateral control over where the money goes.

What does "committed" vs. "executed" mean on a listing? Committed means the member has opted in and intends to make a contribution following a closed transaction. Executed means they followed through after close. Neither badge discloses contribution amounts or deal terms.

Can I opt in after my transaction closes? Yes. Members can opt in at any time. The Impact Exit is activated at moments of completion, not participation, so there is no deadline tied to when you join the platform.