MacKenzie Scott’s giving has attracted plenty of attention because of its scale. But the real story is not the size of the gifts – it’s the way they were given.
I have just finished reading Breaking the Mold: The Transformative Effect of MacKenzie Scott’s Big Gifts, the final report in a three-year study by the Center for Effective Philanthropy into what happened after more than 800 nonprofit organisations received large, unrestricted gifts from Scott.
More than a billionaire story
At first glance, it might seem relevant only to billionaires. Few of us have that kind of money to give.
But the report’s biggest lesson is not about how much we give. It is about how we give.
Whether you give $5,000, $50,000 or $500,000, the findings challenge some of philanthropy’s most persistent assumptions – especially about trust, flexibility and control.
Scott’s approach was simple and unusually bold: large, unrestricted grants, light-touch reporting and a clear signal to organisations that they knew best what their communities needed.
Many of the risks funders often worry about simply did not materialise. The report found that recipient organisations strengthened their financial sustainability, built stronger reserves and largely did not lose other funders as a result of receiving the grants.
Why flexibility matters
Rather than creating dependence, flexible funding helped many organisations become more resilient.
Acknowledging that some of the highest-impact giving is not tied to a specific project, flexible funding strengthens an organisation’s ability to pursue its mission over the long term.
The organisations in the study used the funding both to expand their work and to strengthen the things traditional grants often struggle to support: systems, infrastructure, leadership, financial management and organisational capacity.
It is a powerful reminder that social impact does not only come from programs. It also comes from strong organisations.
As funders, we often focus on visible outcomes and immediate activity. Yet some of the most valuable investments are less visible: building reserves, improving technology, strengthening leadership teams and creating room to think strategically.
Supporting the people behind the work
The human impact was just as striking.
Many nonprofit leaders reported greater confidence, improved morale and a renewed sense of ambition. Some described feeling genuinely trusted by a funder for the first time, while more than a third said the funding helped reduce burnout.
That matters in Australia, where community sector leaders are navigating rising demand, complex social challenges and constant pressure on resources.
When leaders have stability, confidence and support, organisations are stronger and communities benefit.
The report also shows organisations used the gifts to create change beyond their own walls: expanding programs, entering new geographies, reaching new populations and launching new initiatives. Most believed the funding strengthened the fields and communities they serve.
From evidence to action
Perhaps the most confronting finding in the report is the gap between evidence and practice. Despite overwhelmingly positive feedback from recipients, relatively few philanthropic foundation leaders said Scott’s approach had significantly influenced their own practices – even while many agreed philanthropy should provide more multi-year, unrestricted support.
It is easy to talk about trust, flexibility and partnership. It is harder to redesign funding practices around them.
For me, the enduring value of this report is that it shifts the conversation away from extraordinary wealth and towards something every donor can act on.
We can all ask:
- How can I make my funding more useful and flexible?
- How can I reduce unnecessary burdens on the organisations I support?
- How can I invest in organisational strength, not just programs?
- How can I show trust in the leaders closest to the issues I care about?
Those questions matter regardless of the size of the gift.
The report ultimately suggests that trust, flexibility and respect are not soft ideals. They are practical tools for stronger organisations, more effective leaders and greater community impact.
Read the full report: Breaking the Mold: The Transformative Effect of MacKenzie Scott’s Big Gifts
