Report: MacKenzie Scott's Large, Unrestricted Gifts Create Sustained Impact for Nonprofits
A new report released by The Center for Effective Philanthropy (CEP) provides evidence that MacKenzie Scott's large, unrestricted gifts – a departure from prevailing philanthropic norms – have helped strengthen nonprofits' financial stability and increased their community impact, even as there are mixed views of her giving among foundation leaders.
The report, which analyzes survey responses from hundreds of nonprofit and foundation leaders, finds that nonprofit recipients of Scott's gifts are using grant funds to ensure long-term financial stability and few anticipate heightened challenge following use of the funds, often referred to as a "financial cliff." Many organizations are also able to demonstrate meaningful change created for the communities they serve, and nonprofit leaders report increased confidence, reduced burnout, and greater capacity for innovation.
When asked, foundation leaders identified both benefits and drawbacks to Scott's giving, primarily funding cliffs and difficulty fundraising after receiving a Scott gift. In CEP's three-year study, these negative consequences have not materialized. Only 7% of foundation leaders report that their approach has been particularly influenced by Scott's grantmaking.
"There is much to learn from the experiences of nonprofits who received grants using Scott's approach," said Elisha Smith Arrillaga, vice president, Research, at CEP. "These organizations have managed large gifts in strategic ways that have impacted thousands of lives – whether doubling or tripling the number of individuals receiving food from food banks, or increasing the number of houses being built in towns across the country, or countless other examples. Investing in organizations and leaders that are doing amazing work can have huge impacts on communities."
In just five years, Scott – who acquired her personal wealth when she and Amazon founder Jeff Bezos divorced – has given $19 billion in no-strings-attached support to more than 2,000 nonprofit organizations. While the size of her gifts is unique, Scott's approach – grants with few reporting requirements and no time limits on when the funds should be spent – is also uncommon in philanthropy.
The report, "Breaking the Mold: The Transformative Effect of MacKenzie Scott's Big Gifts," is the third and final report in a three-year research study into the experiences of nonprofit organizations that received gifts through Scott's "quiet vetting" process. In addition to the report, CEP published profiles of seven organizations that received funding from Scott. These detailed stories illuminate how Scott's large, unrestricted gifts have transformed their organizations.
Source: The Center for Effective Philanthropy
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