Home Money & Business Business Philanthropist MacKenzie Scott announces an additional $2 billion in charitable contributions for 2024

Philanthropist MacKenzie Scott announces an additional $2 billion in charitable contributions for 2024

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NEW YORK — Billionaire author and philanthropist MacKenzie Scott has announced an additional $2 billion in donations, as detailed in a blog post on Wednesday. This latest contribution has pushed her total charitable giving since 2019 to an impressive $19.2 billion.

In her post, Scott shared insights into her wealth management strategies, stating that she has instructed her advisors to invest her funds into initiatives that align with her philanthropic mission. The majority of her grants in 2024 have been focused on improving economic security and creating new opportunities for those in need.

“I’ve asked the investment team assisting me in managing these assets to look for funds and companies that are working on for-profit solutions to these challenges,” Scott explained. She contrasts this approach with simply withdrawing funds from traditional banking or stock portfolios that largely benefit wealthy individuals already in positions of power.

Scott’s wealth primarily stems from her shares in Amazon, which she received as part of her divorce settlement from the company’s founder, Jeff Bezos. Despite her considerable charitable contributions over the past five years, Forbes estimates her current net worth to be $31.7 billion.

Gabrielle Fitzgerald, the founder and CEO of The Panorama Group, has studied Scott’s philanthropic approach and has provided support to the nonprofits benefiting from her donations. Fitzgerald notes a noticeable shift in Scott’s focus towards alleviating poverty through her giving.

“She has become an inspiring model for other philanthropists. However, it appears that very few have followed her lead,” Fitzgerald commented. “This demonstrates how straightforward it can be to donate substantial amounts to worthy organizations.”

In her recent updates on the Yield Giving website, Scott reflected on the evolving definition of “investing,” remarking on how the term seems to have lost some of its original richness. She emphasized that investing should mean allotting resources for a beneficial purpose and granting additional rights.

Scott, who typically refrains from commenting extensively on her philanthropy aside from these rare updates, has made a significant impact on the nonprofit world through her approach known as “trust-based philanthropy.” This model allows her to provide large grants to over 2,450 nonprofits without imposing restrictive conditions.

Notably, 2024 has seen Scott make repeat contributions to select organizations, marking a new direction in her philanthropic strategy. Among the recipients of her continued generosity this year are CAMFED, which focuses on girls’ education in Africa, and Undue Medical Debt (previously known as RIP Medical Debt), both receiving their third grants from Scott.

For many organizations, the announcement of a grant from Scott’s team often includes the understanding that further support is not expected. Shaun Donovan, the CEO of Enterprise Community Partners, was taken aback when he learned of a significant second donation. “I remember unloading my luggage at LaGuardia Airport when I received the call that MacKenzie Scott was awarding us another $65 million,” Donovan recounted in a November interview. His organization previously received $50 million from Scott in 2020, establishing them as one of her most supported nonprofits, according to publicly available grant data.

“We weren’t anticipating this second gift, as they explicitly state that organizations shouldn’t expect follow-up funding,” Donovan explained. He advised others in similar situations to manage their expectations, suggesting that such funds should not be allocated for routine operational expenses that could jeopardize financial stability.

This year marked a significant development in Scott’s philanthropic giving, as it was her first time utilizing an application process for grants. In March, she revealed the recipients of an “open call” for nonprofit applications. Many were surprised by the number of awards given, with Scott pledging $640 million to over 360 organizations—far exceeding initial expectations.

Reflecting the demand for the unrestricted grants she distributes, 6,353 nonprofits submitted applications through Lever for Change, the organization that facilitated the call for proposals on behalf of Scott. Ultimately, 279 nonprofits were awarded $2 million each, while an additional 82 received $1 million. Previously, many organizations had indicated they were drawn into the donation process through anonymous queries that turned out to be from Scott or received notices unexpectedly without any formal application.

The unrestricted nature of her grants allows nonprofits to allocate the funds based on their specific needs, which contributes to their intrinsic value, according to Donovan. Five years into her substantial philanthropic efforts, he noted that the ripple effects of her contributions are becoming increasingly evident across various sectors, particularly affordable housing.

“The scale of this giving has transformed not only individual organizations but also entire fields,” Donovan concluded.