From paidcontent.org:

As explained on the official Google blog by Sheryl Sandberg, VP-global online sales & operations, the one percent of equity comes from 3 million shares of stock that will be donated and invested over 20 years; the one percent of profit will go to Google.org each year and also will be invested.

Its good to know that Google is putting emphasis on helping entrepreneurs in third world countries. Many charity organizations just dump money and food at problems rather than thinking about long-term solutions.

For more information check out Google.org.