Source: Fortune.com
Summary
MacKenzie Scott, billionaire philanthropist and ex-wife of Amazon founder Jeff Bezos, donated a record $20 million to Santa Barbara City College (SBCC) in 2021. However, about $10.5 million of the gift was spent without explicit authorization from the foundation’s board, college officials, or the trustees. The SBCC Board of Trustees has launched an investigation into the matter. Scott’s trust-based philanthropic philosophy involves giving donations with no strings attached, allowing recipients to use the funds as they choose.
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The numbers tell one story.
SBCC’s Promise Program, which covers tuition, books, and supplies for roughly 1,800 local students each year, received $10.5 million of Scott’s gift without approval. The college’s foundation CEO, Bobbi Abram, attributes the issue to an “accounting process failure” and a “lack of transparency.” The board of trustees has launched an investigation and will discuss the matter publicly.
Scott’s trust-based philanthropy has been a game-changer for many organizations, but in this case, it has raised questions about governance, transparency, and accountability.
As one observer noted, “When ‘no-strings’ meets public institution, things can get complicated.”
Author: Evan Null
