Latest news with #MacKenzieScott
Yahoo
24-05-2025
- Business
- Yahoo
Hundreds of billionaires pledged to give away $600 billion to charity—but the Bill Gates and Warren Buffett era of philanthropy may be over
The era of billionaire baby boomer men leading philanthropy is over—wealthy women are taking the reins, as the likes of Bill Gates and Warren Buffett close an epoch of giving. Thanks to newly proposed tax policies, trust-based 'stealth giving' and female mega-donors like MacKenzie Scott are the future of philanthropy. Bill Gates and Warren Buffett ushered in a new Gilded Era of philanthropic giving, likened in influence to the Rockefellers and Carnegies. But charity work is about to look a whole lot different as higher taxes are threatened on liberal institutions, and new methods of giving are popularized by women mega-donors. Earlier this month, Gates announced that he would be sunsetting his foundation, giving away $200 billion by 2045 and expediting his plans to shed his $100 billion personal fortune. 'There's an air of anticipation in terms of if and how people are going to follow in his footsteps,' Amir Pasic, dean of the Lilly Family School of Philanthropy at Indiana University, tells Fortune. And with prolific philanthropist Warren Buffett recently announcing his planned departure from the helm of Berkshire Hathaway at the age of 94, even more change is expected. His Giving Pledge, with 240 billionaires reportedly pledging a pool of $600 billion, opened the hearts and pockets of the ulra-rich. The question arises if billionaires will pick up the torch and stay true to their promises when Buffett also inevitably parts from the pledge's limelight. Experts agree that a shift is on the horizon—but that doesn't mean a screeching halt to philanthropy altogether. In fact, it could open the door for a more diverse group of donors to take the lead. 'We're likely to see more women come out of the shadows,' Pasic predicts. Many billionaires have started foundations as a way to channel their philanthropic efforts, but a recent decision from the U.S. House of Representatives may upend that practice. Just this week, a budget reconciliation package was approved, which stipulated a tax of 10% on foundations with more than $5 billion in assets. 'The reason this is insidious is that it's going to really hit the big liberal foundations like Gates, Ford, and Soros,' Kathleen McCarthy, director for the center on philanthropy at CUNY, tells Fortune. 'Whereas the conservative foundations are much smaller and they will pay a much lower rate.' Thousands of liberal foundations led by billionaires including Gates, Scott, George Soros, and Mark Zuckerberg could be hit hard by these tax hikes. This could entirely change how billionaires approach philanthropy. '[Billionaires] will start looking at alternative mechanisms once they realize that they're going to be forced to sunset foundations,' McCarthy says. 'That's what's being jeopardized right now.' But some ultra-wealthy donors are already rewriting the rules; MacKenzie Scott's 'stealth giving' practice entails anonymously giving money directly to non-profits, trusting them to handle the funds as they see fit, with no expectations. According to McCarthy, as billionaires are driven away from the foundation-based model, they are pulled towards alternative ways of giving. This includes being inspired by Scott's inconspicuous, direct giving strategy as a way to get around the new taxes. 'I think she's a trendsetter and sort of moral ballast to the way that Gates has been,' Bella DeVaan, associate director of the charity reform initiative at the Institute for Policy Studies, tells Fortune. 'I do see that being not just a trend, but shifting common sense towards trust-based philanthropy.' Scott donates through her Yield Giving foundation, which has given over $19.25 billion to date across 2,450 non-profits, and experts say billionaires could be inspired to donate directly to organizations to ease the tax hit. DeVaan also predicts that Melinda French Gates will be a pioneer of the philanthropic LLC, an alternative to traditional foundations. Experts have pulled on a common thread between who is innovating philanthropy, and how the general make-up of mega-donors is changing: women are in the spotlight. With more than 200 new billionaires minted in 2024 alone, nearly four every week, more players are entering the field and women are stepping into wealth. Women being the face of philanthropy may become the status quo. When tasked with naming the rising stars of philanthropy to fill the big shoes of Gates and Buffett, experts are already noticing a few frontrunners. The one person on everyone's mind: charitable vagabond MacKenzie Scott. 'This is a woman making a pretty bold statement about how she's going to give her money away: by trusting the recipients, and not asking for any reporting back,' Pasic says. 'She's in contrast to the very technocratic way that Bill Gates has approached matters.' Experts also throw out names like Melinda French Gates, who also played a pivotal role in the Gates Foundation, and continues to be a leading voice in giving. Meanwhile, Mark Zuckerberg and his wife Priscilla Chan are pouring out money to innovate human health. They also note that women have long been benevolent philanthropists, only behind the scenes; Madam C.J. Walker, an African American woman who became the first self-made female millionaire, was a major donor at the turn of the 20th century. And in 2025—when U.S. women have even more access to wealth and power than ever before—this group will only be supercharged. Not only have they come into stable, high-paying executive positions, but many women have also grown to be financially savvy as they've gained control over their money and careers. 'You'll see women becoming much more prominent mega donors,' McCarthy says. 'They're very comfortable handling money. They're very comfortable doing research, and they're looking for ways to change the system.' This story was originally featured on
Yahoo
24-05-2025
- Business
- Yahoo
Hundreds of billionaires pledged to give away $600 billion to charity—but the Bill Gates and Warren Buffett era of philanthropy may be over
The era of billionaire baby boomer men leading philanthropy is over—wealthy women are taking the reins, as the likes of Bill Gates and Warren Buffett close an epoch of giving. Thanks to newly proposed tax policies, trust-based 'stealth giving' and female mega-donors like MacKenzie Scott are the future of philanthropy. Bill Gates and Warren Buffett ushered in a new Gilded Era of philanthropic giving, likened in influence to the Rockefellers and Carnegies. But charity work is about to look a whole lot different as higher taxes are threatened on liberal institutions, and new methods of giving are popularized by women mega-donors. Earlier this month, Gates announced that he would be sunsetting his foundation, giving away $200 billion by 2045 and expediting his plans to shed his $100 billion personal fortune. 'There's an air of anticipation in terms of if and how people are going to follow in his footsteps,' Amir Pasic, dean of the Lilly Family School of Philanthropy at Indiana University, tells Fortune. And with prolific philanthropist Warren Buffett recently announcing his planned departure from the helm of Berkshire Hathaway at the age of 94, even more change is expected. His Giving Pledge, with 240 billionaires reportedly pledging a pool of $600 billion, opened the hearts and pockets of the ulra-rich. The question arises if billionaires will pick up the torch and stay true to their promises when Buffett also inevitably parts from the pledge's limelight. Experts agree that a shift is on the horizon—but that doesn't mean a screeching halt to philanthropy altogether. In fact, it could open the door for a more diverse group of donors to take the lead. 'We're likely to see more women come out of the shadows,' Pasic predicts. Many billionaires have started foundations as a way to channel their philanthropic efforts, but a recent decision from the U.S. House of Representatives may upend that practice. Just this week, a budget reconciliation package was approved, which stipulated a tax of 10% on foundations with more than $5 billion in assets. 'The reason this is insidious is that it's going to really hit the big liberal foundations like Gates, Ford, and Soros,' Kathleen McCarthy, director for the center on philanthropy at CUNY, tells Fortune. 'Whereas the conservative foundations are much smaller and they will pay a much lower rate.' Thousands of liberal foundations led by billionaires including Gates, Scott, George Soros, and Mark Zuckerberg could be hit hard by these tax hikes. This could entirely change how billionaires approach philanthropy. '[Billionaires] will start looking at alternative mechanisms once they realize that they're going to be forced to sunset foundations,' McCarthy says. 'That's what's being jeopardized right now.' But some ultra-wealthy donors are already rewriting the rules; MacKenzie Scott's 'stealth giving' practice entails anonymously giving money directly to non-profits, trusting them to handle the funds as they see fit, with no expectations. According to McCarthy, as billionaires are driven away from the foundation-based model, they are pulled towards alternative ways of giving. This includes being inspired by Scott's inconspicuous, direct giving strategy as a way to get around the new taxes. 'I think she's a trendsetter and sort of moral ballast to the way that Gates has been,' Bella DeVaan, associate director of the charity reform initiative at the Institute for Policy Studies, tells Fortune. 'I do see that being not just a trend, but shifting common sense towards trust-based philanthropy.' Scott donates through her Yield Giving foundation, which has given over $19.25 billion to date across 2,450 non-profits, and experts say billionaires could be inspired to donate directly to organizations to ease the tax hit. DeVaan also predicts that Melinda French Gates will be a pioneer of the philanthropic LLC, an alternative to traditional foundations. Experts have pulled on a common thread between who is innovating philanthropy, and how the general make-up of mega-donors is changing: women are in the spotlight. With more than 200 new billionaires minted in 2024 alone, nearly four every week, more players are entering the field and women are stepping into wealth. Women being the face of philanthropy may become the status quo. When tasked with naming the rising stars of philanthropy to fill the big shoes of Gates and Buffett, experts are already noticing a few frontrunners. The one person on everyone's mind: charitable vagabond MacKenzie Scott. 'This is a woman making a pretty bold statement about how she's going to give her money away: by trusting the recipients, and not asking for any reporting back,' Pasic says. 'She's in contrast to the very technocratic way that Bill Gates has approached matters.' Experts also throw out names like Melinda French Gates, who also played a pivotal role in the Gates Foundation, and continues to be a leading voice in giving. Meanwhile, Mark Zuckerberg and his wife Priscilla Chan are pouring out money to innovate human health. They also note that women have long been benevolent philanthropists, only behind the scenes; Madam C.J. Walker, an African American woman who became the first self-made female millionaire, was a major donor at the turn of the 20th century. And in 2025—when U.S. women have even more access to wealth and power than ever before—this group will only be supercharged. Not only have they come into stable, high-paying executive positions, but many women have also grown to be financially savvy as they've gained control over their money and careers. 'You'll see women becoming much more prominent mega donors,' McCarthy says. 'They're very comfortable handling money. They're very comfortable doing research, and they're looking for ways to change the system.' This story was originally featured on
Time Magazine
20-05-2025
- Business
- Time Magazine
Cecilia Conrad
In 2023, when Yield Giving founder MacKenzie Scott wanted to give $250 million to 250 charities serving low-income households and people facing discrimination, she turned to Cecilia Conrad for help choosing which groups most deserved the grants. Conrad runs Lever for Change, a nonprofit that connects donors with organizations through 'open calls,' or competitions for funding, then brings in experts to evaluate applicants for financial soundness, impact, and effectiveness. It's a reversal of the typical invitation-only system most foundations use for grants, and gave, on the one hand, little-known nonprofits a shot at significant funding and, on the other, donors a chance to discover compelling new groups to support. The upshot for Scott? Lever for Change identified so many promising organizations that last year she ended up more than doubling her initial pledge, giving away $640 million to 361 groups, chosen from more than 6,000 applicants. Such is the transformative power of Conrad, a Stanford-trained economics professor-turned philanthropy executive who previously led the MacArthur Foundation's Fellows program, aka its 'Genius' grants. She founded Lever for Change in 2019 to dismantle barriers in philanthropy. 'There are donors who want to fund creative, effective organizations and creative, effective organizations who need funding but they have trouble finding each other,' Conrad says. To date, Lever for Change, which has also advised LinkedIn co-founder Reid Hoffman, has influenced $2.5 billion in donations to more than 500 charities. And more is coming: The organization is now vetting hundreds more charities to help Melinda French Gates decide how to allocate $250 million to improve women's health. 'We exist to help donors discover new ideas, new potential," Conrad says.
Forbes
26-03-2025
- Business
- Forbes
Philanthropists Like MacKenzie Scott Could Help Nonprofits Survive A Funding Freeze
BEVERLY HILLS, CA - MARCH 04: MacKenzie Scott attends the 2018 Vanity Fair Oscar Party hosted by ... More Radhika Jones at Wallis Annenberg Center for the Performing Arts on March 4, 2018 in Beverly Hills, California. (Photo by) MacKenzie Scott is showing the world how philanthropy is done. The Center of Philanthropy's (CEP's) three year study 'Breaking the Mold: The Transformative Effect of MacKenzie Scott's Big Gifts' found that Scott's gifts have been instrumental in uplifting nonprofit organizations. Scott's $19 billion in donations has benefited over 2,000 nonprofits, and according to CEP's findings, 86% of nonprofit leaders reported that Scott's gift will strengthen or has strengthened the communities their organization seeks to impact. Nonprofit organizations play a major role in community empowerment and development, and many nonprofits in the U.S. rely on private funding like Scott's to survive. These organizations also rely heavily on government grants. According to nonprofit data provider Candid, in the U.S., 100,000 nonprofits receive a total of $303 billion from government grants and $107 billion from private foundations annually. Yet, with a U.S. federal grant freeze looming, many nonprofit organizations remain uncertain whether they'll continue to receive government funding. In January, the White House Office of Management and Budget (OMB) released a memo that was issued, rescinded, and later revised. In the revised memo, the OMB demands that federal agencies 'temporarily pause, to the extent permitted by law, grant, loan or federal financial assistance programs that are implicated by the President's Executive Orders.' This would effectively freeze government funds for DEI, LGBTQ+, women's rights and green energy programs that President Trump's executive orders target. The Trump Administration's efforts to withhold federal funding have since been put in limbo after two federal judges blocked the freeze. However, if the freeze were to move forward, it could negatively affect a large swath of U.S. nonprofits. According to Candid's research, private foundations would have to increase donations by 282% to make up for the loss of government grants. This isn't to say that philanthropic efforts aren't doing enough to fund nonprofit organizations, but philanthropy and impactful investing are becoming more important now than ever before. If the government funding freeze moves forward, gifts such as Scott's could become the only way for many nonprofits to survive. Moreover, it'll also be critical that major players in the nonprofit sphere continue their support of DEI, LGBTQ+, women's rights and green energy initiatives. After all, these programs would be most vulnerable if a funding freeze took effect, and unfortunately, larger foundations have already begun eliminating such programs. The Chan Zuckerberg Initiative (CZI), the charity organization founded by Mark Zuckerberg and his wife Priscilla Chan, announced in a company email that it would end its internal and external DEI efforts. NEW YORK, NEW YORK - SEPTEMBER 26: Melinda French Gates attends the Clooney Foundation for Justice's ... More The Albies at New York Public Library on September 26, 2024 in New York City. (Photo by) Thankfully, not all larger nonprofits or foundations are following Zuckerberg and Chan's lead. Melinda French Gate's nonprofit, Pivotal Ventures, has doubled down on its support for businesses that promote DEI, social equity and abortion rights. As previously reported, Pivotal Ventures is committed to advancing women's rights through advocacy work for female founders, abortion rights and paid family leave, and the nonprofit is sticking to its values. In an interview, Pivotal Ventures' senior director of investment Erin Harkless Moore told CNBC, 'We're open for business. We have capital to deploy' specifically for companies that are focused on supporting women and diversity initiatives. Based on the OMB's revised memo, around 1,480 or more of the over 2,000 organizations that receive Scott's gifts could be impacted by a funding freeze in the U.S. It's very possible that funding from Scott will be what keeps these organizations' doors open. And while investments like Scott's and French Gate's could make a huge difference, they can't be the only ones that do. Without philanthropic efforts and impact investing, many nonprofits and programs focused on women, diversity and the environment could fall by the wayside. What CEP's research makes clear is that philanthropy, when strategic and targeted, can make a transformative impact. And with government funding for these causes under threat, impact investing becomes even more vital, with the potential to not only make or break these organizations, but the lives of the people they serve and the realization of a more equitable future as well.
Yahoo
18-03-2025
- Health
- Yahoo
$17.5M OneWorld building marks milestone in $235M South and North Omaha state grant program
A rendering shows a new OneWorld Community Health Centers building to rise in Omaha with the help of state funding. (Courtesy of Leo A Daly, OneWorld) OMAHA — A $17.5 million facility, funded largely by the state, soon will rise and expand the OneWorld Community Health Centers headquarters that currently spans 13 acres of the historic South Omaha stockyards area. The new three-story structure is to be multipurpose, used as a training ground for healthcare workers, a center point for future pandemics and epidemics and to provide more behavioral health and child care services. Construction is to start Friday, making it the biggest newly constructed project to break ground so far in South Omaha as a result of the $235 million North and South Omaha recovery grant program. The North-South grants were the key part of a broader economic development package hatched in 2022, approved by the Nebraska Legislature and Gov. Jim Pillen in 2023, and aimed at spurring jobs and reinvestment in some of the most disenfranchised neighborhoods in Nebraska. The funding source for the North-South initiative started with deadline-strapped COVID-19 federal dollars, but a swap with state dollars later occurred to allow more time for a complex slate of projects to develop. Sharing the $235 million in North and South Omaha recovery grants are about 130 groups and businesses, whose selection by state officials were based on potential for helping to reverse disinvestment. Of the dollars earmarked for South Omaha, $64 million was awarded to Canopy South as the overseer of major projects for itself and six other nonprofits, including OneWorld, whose share was $9.5 million. Canopy South CEO Cesar Garcia said OneWorld is the farthest along of that group, with the others in various earlier stages of planning and development. 'No surprise,' he said, as OneWorld has been established over a half-century, since 1970. It provides affordable health care for more than 52,000 patients annually at 20 clinic locations in Omaha, Bellevue and Plattsmouth. And it had a jumpstart on an expansion vision. The remainder of the OneWorld building's cost is to be covered primarily by philanthropic donations — including a surprise gift from the foundation of MacKenzie Scott, author and former wife of Amazon founder Jeff Bezos. True to form, the MacKenzie Scott gift came out of the blue, with a phone call that OneWorld CEO Andrea Skolkin thought was a 'scam.' The reality was a $7.5 million gift (about $1.5 million of which is to go toward the new building), making OneWorld among the 2,450-plus nonprofits that since 2019 have shared in more than $19 billion 'to use as they see fit for the benefit of others.' Skolkin says the planned 29,000-square-foot facility — the fourth building at its campus near 30th and L Streets, which is anchored by the 11-story, H-shaped Livestock Exchange Building — will help fill crucial service gaps in the city. Already, the clinics are bursting at the seams, she said. 'This is really about making sure everyone has access to care.' OneWorld, as a federally qualified health center, provides comprehensive primary care and support services to underserved populations, offering a sliding fee discount scale to eligible patients. About 98% of its patients live at or below 200% of the federal poverty level. Skolkin said the organization's federally-funded mission is to provide a comfortable and trusting environment for all, including new immigrants. 'The need for quality, culturally-appropriate health care is only increasing in our community,' she said. OneWorld prides itself, she said, in the fact that 65% of employees are bilingual in English and Spanish. The clinic has staff able to communicate in other languages spoken, for example, by newcomers from Guatemala and Myanmar. Called the OneWorld Health Care Workforce Development Center, the new building will be built on a grassy area and parking lot east of the trio of buildings that currently make up the OneWorld campus. One floor is to feature training and upskilling for OneWorld staff and the larger community. Another is designed to expand and assure behavioral health services for people who face language and other barriers to care. Yet another level is to be operated by South Omaha-based Kids Can Community Center, and licensed for 90 children, addressing the shortage of childcare and early childhood educational development services for underserved families and OneWorld employees. The two organizations working together are doing more than filling gaps,' said Kids Club CEO Robert Patterson. 'We are building bridges to connect our families to a bright, healthy future,' he said. An assembly area and drive-through testing area is to be carved out for potential epidemic or pandemic crises. Overall, up to 50 full-time health care positions are to be created and result in expanded access to medical, dental, behavioral health, pharmacy and support services, OneWorld says. With a groundbreaking event scheduled Friday at 4915 S. 30th St., OneWorld hopes to wrap up construction by the close of 2026. Under guidelines of the North and South Omaha recovery grant program, the funds are to be spent by the end of 2027. State Sen. Terrell McKinney was a primary pusher of the North and South Omaha funding, along with then-State Sen. Justin Wayne of Omaha. The South Omaha lawmakers at the time who helped champion the legislation, Tony Vargas and Mike McDonnell, also were term-limited. 'Things are moving,' McKinney said. 'Most of the projects are on schedule.' Perhaps the largest state-assisted project so far to come out of the ground in the North Omaha area was a Pacific Engineering Inc. manufacturing facility. PEI was awarded $10 million from the fund. This point of progress for the grant program comes after a long, winding and often controversial path. Skolkin said she's seen little public investment in South Omaha, relative to other parts of the city. 'This investment — it creates jobs, it creates activity, and kind of a buzz and positive momentum, showing that also the state and others are investing in the well-being of South Omaha so that's an overarching impact.' From a broader view, Skolkin said her staff is aware of 'a lot of rhetoric and a lot of executive orders' that target programs reaching out to diverse populations. To date, she said, her health care network has not received word or guidance from its federal funding source of a need to change operations. 'Right now we still promote 'DEI.' That is who we are and have been since the beginning of time,' Skolkin said. 'We just want to make sure that everyone gets the health care they need.' Of about 130 winners of North and South Omaha recovery grants, the largest recipient was Canopy South, which is serving as a 'community quarterback' of sorts in managing over $64 million dispersed among seven entities. Overall, $234,420,003 in grants was awarded for projects in the two urban communities of Nebraska's largest city. To be sure, numerous South Omaha businesses, nonprofits and applicants beyond Canopy South — including El Museo Latino, Completely Kids and the Stephen Center — received funding awards on their own. Some have started or even completed renovation or building projects. But so far, the OneWorld building project under the Canopy South umbrella is believed to be the largest of the South Omaha ventures to start on its construction phase. Groundbreaking is scheduled Friday. Others under Canopy South management are in various planning stages: Latino Economic Development Council, $25 million to makeover Plaza de la Raza parking lot into an amphitheater and community gathering or tourism area; to build a replacement parking structure elsewhere in South Omaha and to improve area streetscape and alleys. Girls Inc., $11.2 million to help build a new South Omaha center, expected to rise in the grassy lot across from the Omaha South High football and soccer stadium. Latino Center of the Midlands, $2.8 million to rehab its South Omaha headquarters. Simple Foundation, $7.8 million to overhaul its South Omaha headquarters. Lending Link, $1 million, to help homeowners, particularly around the South Omaha Q Street corridor, improve their properties. Canopy South, about $4.7 million, for multimodal improvements and a trail along and around Q Street, 27th to 36th Streets; provide free public Wi-Fi in the Upland Park area; establish a community coffee shop at Heartland Workforce Solutions on 24th near J Street. Canopy South also uses 5% of the total funds to manage the overall grant.
