How MacKenzie Scott’s Giving Strategy Differs From Other Billionaires — and Why It Works
Written by
David Nadelle
Edited by
Cory Dudak
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While her billionaire ex-husband has been making headlines for organizing the recent all-female Blue Origin space trip, his controversial position as proprietor of The Washington Post and his impending wedding, the former wife of Amazon founder Jeff Bezos, MacKenzie Scott, has been quietly making a difference in the future of organizations and nonprofits in the form of unrestrictive charitable gifts.
According to a three-year study by the Center for Effective Philanthropy (CEP), Scott has donated $19 billion of her wealth earned through her divorce from Bezos. However, the real story is how Scott’s giving has had a “transformational effect” on over 2,000 non-governmental organizations (NGOs), and the size and scale of her grants, which the CEP described as being “unmatched” among fellow philanthropists.
“I needn’t ask those I care about what to say to them, or what to do for them,” said Scott of her charitable mission. “I can share what I have with them to stand behind them as they speak and act for themselves.”
How MacKenzie Scott Is Changing the Face of Philanthropy
Of course, Bezos and his fiancee Lauren Sanchez are no strangers to the world of philanthropy. In fact, Sanchez will be bestowed the prestigious 2025 Global Gift Women Empowerment Award at Cannes Film Festival’s Global Gift Gala on May 19 for her work with the Bezos Earth Fund and This Is About Humanity organizations, according to Vanity Fair.
However, Scott’s charitable work differs from other billionaires in that there are no-strings attached. In addition to being bigger than most large foundations or megadonors (median size of $5 million, according to Entrepreneur), Scott’s grants have no spending deadlines and minimal reporting requirements.
Initial skepticism centered on the absence of checks, the concern that companies wouldn’t manage the grant money efficiently and the fear that other donors would stop funding groups that received grants from Scott, thinking they don’t need the money. There was also the worry that Scott’s donations would create funding “cliffs,” or large gaps in revenue once grant money had been spent.
However, through Scott’s discreet vetting process, recipient organizations are getting the financial bump they need to make the biggest impact, and very few anticipate a financial cliff. The CEP report found little negative results in their research to date, and noted that 88% of grant recipient leaders reported no negative consequences for their organization or work.
“After five years of giving, the reported effects of her gifts on recipient organizations…remain overwhelmingly positive,” the report stated.
The donations have helped many nonprofits not only succeed to reach their goals, but to grow their communities by creating program initiatives and expanding existing programs to new populations and geographies. Grants have helped groups build their financial reserves and their investment assets. Additionally, recipient leaders reported renewed confidence, improved internal morale and decreased burnout and stress levels.
According to the CEP report, the majority of NGO executives (93%) said that Scott’s gift somewhat or significantly improved their ability to carry out their goal, per Entrepreneur. The majority (90%) claimed the gift improved their financial situation, while more than 60% said they used the money to develop credibility with other donors.
“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.”
After divorcing Bezos in 2019, Scott joined the Bill Gates and Warren Buffett co-founded Giving Pledge, making a public commitment to donate her “disproportionate amount of money” in a caring and thoughtful manner “until the safe is empty.”
“Breaking the Mold: The Transformative Effect of MacKenzie Scott’s Big Gifts,” was the third and final installment of CEP’s three-year research study examining the experiences of nonprofit organizations that received contributions through Scott’s initiatives.
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Sources
- Vanity Fair, “Lauren Sanchez, Jeff Bezos’s Fiancee, to Receive Award at Cannes Film Festival“
- Center for Effective Philanthropy (CEP), “Research Shows MacKenzie Scott’s Large, Unrestricted Gifts Create Sustained Impact for Nonprofits and Communities“
- CEP, “Breaking the Mold: The Transformative Effect of MacKenzie Scott’s Big Gifts“
- Entrepreneur, “MacKenzie Scott’s Nearly $20 Billion in Donations Has Had a ‘Transformative Effect,’ According to a New Study. Here’s How“
- The Giving Pledge, MacKenzie Scott Pledge Letter
