Jeff Bezos' ex-wife Mackenzie Scott is one of America's most generous philanthropists, but a report says her large donations provide little long-term support for charities.
The billionaire, who promised to give away half of his $35 billion fortune after his divorce from the Amazon founder was finalized in 2019, sent large unrestricted gifts to a number of high-profile nonprofits last year. Although it is an unusually large amount, some experts say Scott's donations were not properly executed.
“Her gift is extremely generous, but unfortunately it does not provide long-term sustainability,” said Gabrielle Fitts, founder and CEO of Panorama Global, which investigated Scott's gift and its impact. Gerald said: told Fortune.
Scott signed a contract in 2019 pledge of donationan initiative launched by Warren Buffett, Melinda French Gates, and Bill Gates, encourages the wealthiest Americans to give away more than half of their wealth. Since then, she has donated more than $19 billion to more than 2,000 nonprofit organizations.
According to Forbes magazine, her net worth is $31.2 billion, about $4 billion less than after her divorce from Bezos.
Many of Scott's large unrestricted donations go to more well-known nonprofits, as she donated $436 million to Habitat for Humanity and Habitat-affiliated organizations in 2022. There is.
To expand donations, Scott provided a $1 million grant last year through a partnership with Lever for Change. Fortune magazine reported that he required nonprofits to apply for grants with annual budgets of between $1 million and $5 million, making applicants one of the approximately 2 million nonprofits in the United States. It has been narrowed down to just a small portion of the group.
Mr Fitzgerald questioned the billionaire's move to exclude smaller organizations.
“I think the interesting question is, does she end up in the future down to a nonprofit organization with an annual budget of less than $1 million,” Fitzgerald told Fortune.
Fitzgerald added that Scott should also consider making repeat donations to organizations he has supported in the past.
Scott gave $1 million and $2 million to 361 of the more than 6,000 nonprofits that applied for grants, expanding the initial $250 million to $640 million.
“She has been an inspiration to many people, but not many people are acting on that inspiration,” says the Indiana University Philanthropies, who studies the impact of unrestricted gifts like Scott's. Pamala Whipking, a professor at the school, told Fortune magazine.
Many philanthropists' goals don't actually align with how they give grants, Whipking said.
Whipking said she regularly speaks with funders interested in changing the way they give, but she rarely sees changes.
Scott remains tight-lipped about his donation strategy. Scott launched the website after receiving criticism for refusing to give any media interviews about his donations. donation of yieldwhere she publishes a short essay about her gift.
In 2022, she published a database of donations on her site. Unlike The Giving Pledge, Yield Giving does not have a contact page.
Supporters of unrestricted nonprofit funding say organizations should be free to use donations as they see fit to prevent penny-pinching to operations and payrolls.
Fortune reports that some unrestricted donors provide this type of funding to participate in nonprofit work and provide their unique expertise.
However, Whipking told Fortune that he has “no long-term relationship” with Scott. “What they say in trust-based philanthropy is to provide support beyond a check, and typically she doesn't do that.”
Ms. Scott gives away an average of $3 billion a year, making her one of the nation's largest philanthropists. Most of her grants this year went to organizations that address “race and ethnicity” and “youth development,” according to her website.
Fitzgerald said a slightly higher percentage of her funds this year went to democracy-focused organizations.
Scott donates most of his grants to nonprofit organizations in the southern United States. In her latest round of funding, California and New York received the most grantees.
