Source: Fortune
Summary
Mackenzie Scott’s philanthropic efforts have been remarkable, giving away over $26 billion in just a few years. This is in contrast to other billionaires, who tend to give away a small percentage of their wealth. Research by the Bridgespan Group found that families with over $500 million in assets gave away only 1.2% of those assets in 2017, a figure that remained unchanged in 2023. Scott’s approach to philanthropy is highlighted as an outlier, with her practice of “trust-based philanthropy” and unrestricted giving allowing organizations to determine how best to direct funds. Other philanthropists, such as Melinda French Gates, have praised Scott’s approach, while also criticizing the slow pace of philanthropy among billionaires.
Our Reading
The numbers tell one story. Billionaires like Mackenzie Scott are rewriting the rules of philanthropy, with Scott giving away over $26 billion in just a few years. But for others, the pace of philanthropy remains slow, with research showing that families with over $500 million in assets gave away only 1.2% of those assets in 2017. Scott’s approach is an outlier, with her practice of “trust-based philanthropy” allowing organizations to determine how best to direct funds. The contrast between Scott’s approach and the slow pace of philanthropy among other billionaires raises questions about the effectiveness of current philanthropic efforts. The strategy enters a familiar phase, where the focus is on the pace of giving rather than the amount. The announcement sounds familiar, with billionaires promising to give back, but the reality is often different. The numbers tell one story, but the actions tell another.
Author: Evan Null
