MacKenzie Scott, the ex-wife of Jeff Bezos, has given away greater than $19 billion to charity since divorcing the Amazon founder and changing into one of many richest ladies on the earth — however specialists are divided on how efficient her donations have been.
The Middle for Efficient Philanthropy carried out a research on organizations that obtained presents from Scott. It analyzed the long-term results of her unrestricted, multi-million-dollar donations to varied nonprofits.
The organizations studied by CEP reported that Scott’s donations helped strengthen their operations, put money into know-how, increase providers, and, in some circumstances, stabilize throughout monetary hardships.
Many organizations used the funds to leverage extra donations from different sources, as Scott’s endorsement added credibility and visibility.
Huge Brothers Huge Sisters of America obtained $25 million, which enabled the group to reinforce its mentoring applications, put money into analysis, and develop new volunteer recruitment methods.
A good portion was allotted to an endowment to make sure long-term sustainability.
The report, nevertheless, follows a research that was commissioned final yr which discovered that Scott’s large donations provide scant long-term assist to charitable teams.
“Her gifts are super generous, but unfortunately, they don’t provide long-term sustainability,” Gabrielle Fitzgerald, founder and CEO of Panorama International, which has studied Scott’s donations and their affect, instructed Fortune in December.
Scott’s philanthropic mannequin has considerably benefited nonprofits by offering unrestricted funds, permitting them to make strategic investments with out bureaucratic constraints.
However Scott requires nonprofits to have annual budgets that vary between $1 million and $5 million — a transfer that excludes smaller charities from her giving, in accordance with Fitzgerald.
“She’s been an inspiration for a lot of people, but not a lot of people are acting upon that inspiration,” Pamala Wiepking, a professor at Indiana College’s philanthropy faculty who has studied the affect of unrestricted gifting like Scott’s, instructed Fortune.
Regardless of the overwhelmingly constructive results of Scott’s presents, a number of organizations reported difficulties in managing expectations inside their networks, particularly when some associates obtained grants whereas others didn’t.
Huge Brothers Huge Sisters of America created a “Better Together Fund” to share assets with its associates that weren’t direct recipients of Scott’s funding.
One other problem was donor skepticism.
Some longtime funders lowered or stopped their donations, assuming the organizations now not wanted monetary assist after receiving Scott’s presents.
The Pastoral Ladies’s Council and South Texas Meals Financial institution struggled with donor retention, requiring strategic communication to make clear that their monetary wants remained vital regardless of the one-time windfall, in accordance with the research.
Moreover, organizational change administration was a hurdle for some recipients.
KABOOM!, a nonprofit devoted to play fairness, obtained $14 million to reinforce playground entry for youngsters in underserved areas.
The group launched a data-driven initiative to determine and handle playground inequities and expanded its coverage advocacy work.
Nonetheless, KABOOM! underwent a shift from being primarily a playground-building nonprofit to an equity-focused coverage advocate, resulting in workers turnover and a necessity for inner restructuring.
In contrast to many philanthropists who impose strict tips on how donations ought to be spent, Scott’s mannequin prioritizes trust-based philanthropy, permitting nonprofits to determine how greatest to make the most of funds.
Since 2019, Scott has donated over $19 billion to greater than 2,450 nonprofits, specializing in areas resembling financial mobility, racial fairness, public well being and local weather change.
In 2024 alone, she contributed a further $2 billion, bringing her complete charitable donations to $19.2 billion.
MacKenzie Scott’s wealth is derived from her early involvement with Amazon and her substantial shareholding.
As a part of the divorce settlement with Bezos, Scott obtained 25% of their shared Amazon inventory, equal to a 4% stake within the firm, valued at roughly $35.6 billion on the time.
This settlement immediately positioned her among the many world’s wealthiest people.
Regardless of her substantial philanthropic efforts, Scott’s internet price stays vital.
As of Thursday, her wealth was estimated by Bloomberg Billionaires Index at $41.7 billion — largely as a result of appreciation of her remaining Amazon shares.
Scott married trainer Dan Jewett in March 2021.
They finalized their divorce in January 2023.
Bezos turned engaged to Lauren Sánchez, his girlfriend of 4 years, in 2023.
The Publish has sought remark from Scott.
With Publish Wires
