Inspiring Figure: MacKenzie Scott
The Mystique of Philanthropy
For years I have been fascinated with philanthropy.
I am not sure exactly why. To me, the idea of giving and receiving money is filled with mystique: the giver relinquishes material resources, that so many people (including myself) strive for, and dedicate a large amount of their life toward. Funds and resources are obviously valuable to the giver, as they are quite often hard earned and endowed with a deeply personal meaning, or they can be used for personal pursuits. Think of all the yachts, cars, vacations, mansions, adventures money can buy!
Also, the receiver has an opportunity to pursue worthy goals and impact that he or she had no or limited possibilities to accomplish prior to receiving a philanthropic gift. In addition, the fact that is entirely voluntary makes it subject to influences and subjectivity that always affect that decision one way or another.
So it is a field rich (no pun intended), filled with philosophical questions: how much to donate? What causes to donate to? Who donates and who doesn’t? Who should donate? How does that giver-receiver donor gets formed, does it endure, and does it change either of them in a meaningful way. Charity is filled with spiritual significance, and often a core precept of several religions, such as Christianity or Judaism.
In modern times, a notable example and a bench mark in philanthropic giving by the very affluent is Chuck Feeney, who I featured in newsletter 17, and who gave away almost all of his amassed wealth. A fomer billiionaire, he anonymously donated more than $8 billion to charities, universities and organizations worldwide through his foundation, the Atlantic Philanthropies, then set aside about $2 million for his and his wife's retirement. In other words, from every $100,000 that he had amassed, he gave away $99,975, and only kept $25. While it may be an extreme case, it speaks to the immense power that philanthropy can have.
The MacKenzie Scott Way
The former spouse of Amazon founder Jeff Bezos, emerged as a notable figure in the realm of philanthropy and because of her rippling, far reaching impact she is worth our attention. She is on track to become the most generous person in history, by value of funds donated, with more than $14.1 billion given to at least 1,621 charities since 2020.
After finalizing her divorce from Bezos in 2019, she became one of the wealthiest women on the planet due to her substantial settlement: more than US$35billion in Amazon stock. However, what set her apart was not just her immense wealth but her commitment to giving back and making a substantial impact through her philanthropic endeavors. She signed the Giving Pledge, a charitable-giving campaign in which she undertook to give away most of her wealth to charity over her lifetime or in her will.
“There’s no question in my mind that anyone’s personal wealth is the product of a collective effort, and of social structures which present opportunities to some people, and obstacles to countless others.”- Mackenzie Scott
That said, Scott quickly became recognized for her distinctive approach to charitable giving. Instead of establishing her own foundation which is a fairly typical strategy for affluent folks (see the Bill and Melinda Gates Foundation, for example), she adopted a more direct and hands-on approach to donating her wealth.
In a series of substantial and rapid donations, she sought to address societal challenges by supporting various causes and organizations, mainly focusing on those advocating for racial equality, economic mobility, healthcare, and education.
The Process
While there are of course critics that can emerge, it is important to recognize that Mackenzie Scott used a team of advisors and employed the collective knowledge of experts. They looked at more than 6,000 organizations in 2020 alone, carried out hundreds of hours of research and due diligence, wrote thousands of pages of data analysis on community needs, program outcomes, and each non-profit organization’s capacity to absorb and make effective use of funding.
Snapshot of organizations supported, from yieldgiving.com
MacKenzie Scott prioritized transparency and accountability in her philanthropic efforts. She published detailed accounts of her donations on her website www.yieldgiving.com, outlining the recipients and the specific amounts given. This transparency not only set a precedent in the philanthropic world but also encouraged other wealthy individuals to consider similar approaches to their charitable giving.
She is truly leading the way in how to spread accumulated wealth for greater good: with simplicity, accountability, efficiency, and transparency.
Scott's method allowed the recipient organizations the flexibility to allocate funds according to their needs, thus enabling them to pursue their missions more effectively. She and her advisors personally made the phone calls to the various organizations directly to deliver the news. This resulted in hearltfealt moments and conversations as veteran nonprofit leaders on the receiving end were often moved to tears when learning of the grant, and the impact they could have as a result.
Her Impact
One of the most remarkable aspects of MacKenzie Scott's philanthropy was her emphasis on giving unrestricted, significant gifts to organizations. Her approach contrasted with traditional philanthropy, where donors often impose restrictions on how their donations can be used: through the so-called controlling “dead hand of the donor”.
Scott's philanthropic strategy demonstrated a strong understanding of the systemic issues that plague societies worldwide. By supporting organizations that work to address these issues at their roots, she aimed to create lasting, positive change rather than just offering temporary solutions.
Her donations were vast and far-reaching. Scott consistently supported smaller, grassroots and community-based organizations, recognizing their important roles in enacting change at the local level. Her contributions, often in the millions and sometimes billions of dollars, had the ability to be transformational and mak a profound impact on numerous nonprofits, enabling them to expand their operations, launch new initiatives, and amplify their impact within their communities.
“I have no doubt that tremendous value comes when people act quickly on the impulse to give. No drive has more positive ripple effects than the desire to be of service. - MacKenzie Scott
A Model to Follow
Mackenzie Scott’s actions served as an inspiration and a challenge to other billionaires and high-net-worth individuals to reconsider their approaches to philanthropy. Beyond simply writing checks, she leveraged her wealth and privilege to effect meaningful change and champion causes that strive for a more equitable and just society.
Her philanthropic work stands as a testament to the potential impact of strategic and compassionate giving. Her dedication to addressing societal issues through substantial and unrestricted donations has challenged the traditional ways of philanthropy, emphasizing the importance of accountability, transparency, and a commitment to empowering grassroots initiatives.
Her approach serves as a model for philanthropists worldwide, encouraging a more deliberate and impactful deployment of wealth for the betterment of humanity. MacKenzie Scott likely became world famous for helping start Amazon.com and being Jeff Bezos’ wife. But she will likely make history and change thousands of lives for the better because of her generosity.
There are lots of resources each of us can pull from our safes to share with others – time, attention, patience, creativity, talent, effort, humor, compassion. And sure enough, something greater rises up every time we give: the easy breathing of a friend we sit with when we had other plans, the relief on our child’s face when we share the story of our own mistake, laughter at the well-timed joke we tell to someone who is crying, the excitement of the kids in the school we send books to, the safety of families who sleep in the shleters we fund. These immediate results are only the beginning. Their value keeps multiplying and spreading in ways we may never know.” -Mackenzie Scott
Sources:
https://yieldgiving.com/
https://en.wikipedia.org/wiki/MacKenzie_Scott
“Charities Aid Foundation” Podcast - January 26, 2021 Episode MacKenzie Scott & The Reimagining of Philanthropy
“Apple News Today - In Conversation” Podcast - June 26, 2021 Episode Belinda Luscombe on MacKenzie Scott giving away her fortune
