Billionaire philanthropist MacKenzie Scott has made headlines once once more, announcing that she will be donating $640 million to 361 small nonprofits. This generous act is more than double what Scott had initially pledged to give away through the application process. Since 2019, Scott and her team have been researching and selecting organizations without an application process and providing them with large, unrestricted gifts.
Scott expressed gratitude to Lever for Change, the organization that managed the open call, and the evaluators for their role in creating a pathway to support for people working to improve access to foundational resources in their communities. The increase in both the award amount and the number of organizations selected is a pleasant surprise for Elisha Smith Arrillaga, the vice president at The Center for Effective Philanthropy. She is interested to learn more regarding the applicants’ experience and whether Scott will continue to use this process going forward.
The open call for applications drew in a staggering 6,353 nonprofits, all vying for the $1 million grants that were up for grabs. Lever for Change, specializing in running philanthropic prize awards, decided to expand the awardee pool and the award amount. The 279 nonprofits that received top scores from an external review panel were awarded $2 million each, while 82 organizations in a second tier received $1 million each.
Competitions like Scott’s open call provide an opportunity for organizations that do not have connections with specific funders to be considered. This is a significant aspect of prize philanthropy, as it surfaces people, organizations, and institutions that would otherwise remain unseen. The senior vice president of Rockefeller Philanthropy Advisors, Renee Karibi-Whyte, suggests that funders who run competitive grants or philanthropic prize competitions should phase the application process to diminish the burden for eliminated organizations.
The open call specifically targeted nonprofits that are community-led, with missions to advance the voices and opportunities of individuals and families of meager or modest means. Only nonprofits with annual budgets between $1 and $5 million were eligible to apply. Cecilia Conrad, the CEO of Lever for Change, expressed her excitement regarding the opportunity to identify, uplift, and empower transformative organizations that are often overlooked.
Scott’s philanthropic journey began following her divorce from Amazon founder Jeff Bezos, and she has already given away a staggering $16.5 billion. Initially publicizing her gifts through online blog posts, she eventually launched a database of her giving called Yield Giving in December 2022. Scott acknowledges that information from other people, givers, her team, and the nonprofit teams she has been giving to, has been tremendously helpful to her. She aims to share as much information as possible regarding her gifts in order to assist others.
In analyzing the implications of Scott’s philanthropic efforts, it is evident that she is continuing to honor her commitment in terms of giving away her wealth. While she explores different approaches and tweaks the process, she remains dedicated to the spirit of her commitment. Scott’s philanthropy serves as an inspiration to others, encouraging them to consider how they can use their resources to make a positive impact on society.
Looking to the future, we can anticipate a continued rise in philanthropic initiatives aimed at uplifting marginalized communities. The impact of Scott’s open call encourages other philanthropists to embrace a more inclusive and merit-based approach in their giving. This trend aligns with the growing demand for corporate social responsibility and the recognition that businesses have a vital role to play in addressing social inequalities.
In light of current events, such as the COVID-19 pandemic and increasing wealth inequality, it is imperative for philanthropists and businesses alike to prioritize supporting organizations that are working towards equitable access to resources. By investing in community-led initiatives that aim to empower individuals and families of meager or modest means, society can move closer to bridging the gaps in opportunity and wealth.
In conclusion, MacKenzie Scott’s latest act of philanthropy serves as a shining example of how individuals can make a significant impact by channeling their resources towards organizations that are working towards positive change. Her open call for applications has not only provided immense support to deserving nonprofits but has also sparked conversations regarding the importance of inclusivity and merit-based selection processes in philanthropy. As we move forward, it is crucial for individuals, businesses, and philanthropists to continue prioritizing initiatives that address social inequalities and promote equitable access to resources. By doing so, we can collectively build a more just and inclusive society for all.