NEW YORK (AP) — In a blog post on Wednesday, billionaire author and philanthropist MacKenzie Scott announced an additional $2 billion in donations, raising her total contributions since 2019 to an impressive $19.2 billion. This remarkable figure highlights her commitment to philanthropy and aiding various causes.
Scott, who acquired most of her wealth through Amazon shares following her divorce from founder Jeff Bezos, currently has an estimated net worth of $31.7 billion, despite her ongoing charitable efforts over the past five years.
In her recent post, she shared insight into her philanthropic strategy, stating that she instructed her advisors to focus on investing her wealth in “mission-aligned ventures.” She emphasized that the majority of her 2024 grants were directed towards fostering economic security and opportunities for underserved communities.
“I’ve asked the investment team helping me manage the assets I’m working to give away to source funds and companies focused on for-profit solutions to these challenges,” Scott explained. This approach contrasts with traditional philanthropic methods of merely transferring wealth from financial portfolios that often benefit established leaders.
Scott’s approach to philanthropy, termed “trust-based philanthropy,” provides unrestricted, substantial funding to over 2,450 nonprofits, which has significantly disrupted the conventional giving landscape. This year marks a notable change as she began using an application process to distribute grants.
In March, Scott revealed the results of an “open call” for applications from nonprofits. She pleasantly surprised recipients by awarding funding to more organizations than announced, pledging a total of $640 million to over 360 nonprofits. The overwhelming demand for her unrestricted grants was evident, as 6,353 nonprofits submitted applications through Lever for Change, the nonprofit aiding her initiative.
Among the grant recipients, organizations like CAMFED, which promotes girls’ education in Africa, and Undue Medical Debt, formerly known as RIP Medical Debt, received multiple donations from Scott this year. Shaun Donovan, CEO of the affordable housing organization Enterprise Community Partners, experienced this surprise firsthand when he received a phone call about an unexpected $65 million donation while at LaGuardia Airport. Previously, his organization had been awarded $50 million from Scott in 2020, marking them as one of the highest beneficiaries of her philanthropy.
The unrestricted nature of Scott’s grants allows nonprofits to allocate funds according to their pressing needs, enhancing their effectiveness. Donovan remarked, “The scale of this giving has not only transformed individual organizations but also entire sectors, like affordable housing.”
Gabrielle Fitzgerald, founder and CEO of The Panorama Group, has closely studied Scott’s contributions and advised numerous nonprofits benefiting from her generosity. Fitzgerald noted a noticeable shift in Scott’s focus toward addressing poverty issues, stating, “She is creating an amazing role model for philanthropists, although I don’t see very many that have followed her role modeling. However, it clearly demonstrates that giving substantial amounts to worthy organizations is achievable.”
Reflecting on the essence of “investing,” Scott wrote that the term has lost its original vigor, once signifying a commitment of resources for beneficial purposes. In her view, philanthropy should empower and equip organizations rather than perpetuate existing inequalities.
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