Artis Stevens, CEO of Big Siblings in the United States, received a call from the Mackenzie Scott team in 2022, which was so exciting and unexpected that it led him to break into the kitchen to improvise dance. “My two daughters, who were 12 and 14, walked in and started screaming at my wife, 'Mom, dad has a problem!'” Stevens noted in a recent study, analysing Sco The impact of special donations.
The Tampa, Florida-based nonprofit, which received $25 million from philanthropists two years ago, is one of more than 2,000 organizations that have transformed from philanthropists’ $19 billion grants over the past five years. Effective charity (CEP). In addition to the often surprising grant recipients (usually through quiet research), billionaires’ grants have long been differentiated by their enormous scale and unrestricted nature.
Scott previously married Amazon founder Jeff Bezos and in 2019 promised to hand over her huge fortune to charity. According to the study, her median gift of about $5 million, with nearly half of her recipients focused on the Social Justice District, the study looked at leaders of hundreds of organizations that came from the country from 2020 to early 2024. Scott received the gift.
“The way Scott gives these gifts is that there is no time limit, so it means people can really budget strategically,” Elisha Smith Arrillaga, vice president of research and co-author of research at CEP, told Observers.
Nearly 90% of nonprofit leaders surveyed said the grant was moderate or significantly enhanced the organization’s long-term financial sustainability. About 60% of people intend to spend the grant over the next two to five years, and only 15% of the funds have been used up.
The gifts also had a huge impact on the individual level, with more than one-third of the surveyed leaders saying grants reduced their burnout. Nearly 40% say Scott's donation leads to their intention to maintain their current role for a longer period of time.
Surprise gifts can sometimes cause unexpected challenges
The report said 90% of the organization leaders surveyed reported no negative consequences related to Scott's grant. However, about 17% said they had small challenges related to using or receiving donations, while 2% dealt with major issues.
The last category consists of 20 nonprofits in total, usually related to relationships with other funders after receiving Scott’s gift. In some cases, the generosity of philanthropists has prevented other funders from needing additional grants.
Although Scott's philanthropy has had a big positive impact, 52% of survey foundation leaders acknowledged that they did not follow her leadership and should provide a lot of support that is more unlimited than they are currently. Nearly one-third of the group said they are exploring such changes, while others noted that if such funds are invested, they have too small foundations or may suffer financial risks.
But following Scott's exact approach, at least in terms of grant size, isn't a reality. “One of the things that happens when we come up with these data is that people are like, oh my god, that's a lot of money,” Smith Arrillaga said. “It's not necessarily her giving The number, but the method.”
Looking ahead, she hopes more philanthropists will consider Scott's strategy and trust more in nonprofit leaders. “This has had a strong and transformative impact on the organization,” Smith Arrillaga said.
