MacKenzie Scott has given massive, unrestricted items to more than 2,450 nonprofits over the previous six years. The 54-year-old donated over $2 billion in 2024 alone, bringing her whole items to $19.2 billion since 2019.
Now, a brand new three-year analysis from the Heart for Efficient Philanthropy (CEP) finds that Scott’s no-strings-attached items, with a median measurement of $5 million, have had a “transformative impact” on nonprofits by serving to them broaden their influence and turn into extra financially secure.
CEP launched the analysis earlier this month after surveying over 800 organizations that obtained donations from Scott from June to July 2024.
Associated: MacKenzie Scott Donates $640 Million to Non-Profits After Elon Musk’s ‘Ex-Wife’ Comment on X
The overwhelming majority of nonprofit leaders, 93%, reported that Scott’s grant reasonably or considerably strengthened their means to hold out their mission. Most, 90%, stated the reward bolstered their monetary positions, whereas greater than 60% stated they used the grant to determine credibility with different funders.
The grants have additionally expanded nonprofits’ working budgets and have helped them present extra of an influence on their communities whereas additionally enhancing their very own worker’s well-being, the research notes.
The nonprofit Kaboom!, for instance, builds playgrounds in areas that lack them. Scott donated $14 million to the group in 2021, and greater than doubled its annual working finances.
After receiving a $9 million donation from Scott in 2020, the South Texas Meals Financial institution almost doubled the meals it distributed — 14 million kilos in 2019 to 26 million in 2020. South Texas Meals Financial institution CEO Alma Boubel told USA Today that the donation allowed the meals financial institution to maintain distributing round 20 million kilos of meals annually from 2021 to 2024 and supply its 42-person workers with free healthcare.
Associated: Melinda French Gates Announces Open Call for $250 Million Fund. Here’s Who Can Apply.
General, Scott’s items have enabled 85% of nonprofit recipients to enhance or broaden their programming and given 52% a higher capability to answer the wants of the communities they serve, the research discovered.
“Few funders have the sources to provide on the degree that MacKenzie Scott is giving, however each funder can study from her fascinating method,” Phil Buchanan, president of CEP, stated in a press release.
MacKenzie Bezos. Photograph by Michael Kovac/Getty Photos for J/P HRO Gala
Nonprofit tax filings additionally mirrored the influence of Scott’s contributions. The organizations that obtained awards from Scott had double the amount of money reserves than comparable nonprofits.
Scott chosen these nonprofits based mostly on “quiet analysis,” or a discreet vetting course of that rigorously analyzed the organizations in line with their measurement, mission, and observe information. Some key focus areas of the grant recipients have been human companies (44%), schooling (41%), and well being (35%). Recipients of the items can allocate the funds as they need with out enter from Scott.
Nonetheless, some nonprofit leaders have recognized drawbacks to Scott’s method.
Greater than half (53%) have been involved that different funders would possibly withdraw their help as a result of they’d really feel recipients did not want further funding. Greater than 60% reported being afraid the grant would create a funding cliff, or decreased long-term funding.
The nonprofits Scott contributed to have been, on common, bigger than the norm with a median finances of $7 million. In accordance with the National Council of Nonprofits, 88% of nonprofits have a finances of lower than $500,000 per yr. Scott additionally gave reward recipients greater than anticipated, the CEP discovered. In comparison with the median grant measurement tracked by the middle of $123,000 amongst nonprofits as an entire, Scott’s contributions ranged from $300,000 to $80 million.
Scott’s wealth originates from the shares in Amazon she obtained after divorcing Amazon founder Jeff Bezos in 2019. Scott signed the Giving Pledge that yr, writing that she had “a disproportionate sum of money to share” and would maintain donating “till the secure is empty.”
In accordance with the Bloomberg Billionaires Index, Scott is value round $40.2 billion and is the forty first richest individual on this planet.
Associated: ‘Wanted to Cry for Joy’: MacKenzie Scott Donates $65M Gift to Housing Nonprofit.
