WASHINGTON – In her second move as a billionaire philanthropist, MacKenzie Scott (formerly Bezos) has announced $4.2 billion in gifts to 384 organizations, mostly unrestricted grants to front-line charities addressing the needs of low-income people during the pandemic. The following statement applauding her approach is by Chuck Collins, Director of the Charity Reform Initiative, Institute for Policy Studies:
MacKenzie Scott’s bold and direct giving puts shame to the billionaire class and their perpetual private foundations. During a pandemic when U.S. billionaire wealth has increased $1 trillion since March, other billionaires should draw inspiration from her approach to move funds to urgent needs, to historically marginalized groups, to share decision-making with non-wealthy people, and to avoid warehousing funds in private legacy foundations.
Of particular note is not just the size of her gifts, but the approach she has taken to giving. Scott, a newcomer on the billionaire wealth scene, has surrounded herself with advisors that come from under-resourced communities, not the folks that typically sit on foundation boards. As a result, the bulk of these gifts are to the works of mercy during this pandemic – food banks, direct social service organizations, emergency funds, and support services for the most vulnerable.
Many private foundations are still guarding their perpetual endowments and giving the minimum 5 percent required, including overhead. By example, Scott is shaming these mega-foundations that worry more about perpetuity than the suffering of their neighbors during an unprecedented crisis.
Private foundations are sitting on over $1.1 trillion in assets while donor-advised funds (DAFs) hold an estimated $120 billion. Wealthy donors have already taken their tax breaks for these donations, but need a push to move their money. A movement of charities has been pressing Congress to include an Emergency Charity Stimulus as part of the next Covid-relief passage. This would mandate that private foundations increase their minimum payout from 5 percent to 10 percent –and that DAFs have a payout. This would move $200 billion to front line charities over the next three years, without adding to national borrowing.
Scott’s current net worth, according to Forbes is $59 billion, making her the 19th wealthiest billionaire in the U.S. She still has a long way to go in her stated intention of giving away all the wealth. But she’s now made two bold moves, putting to shame the other 650 U.S. billionaires who haven’t figured out comparable ways to share boldly .
A coalition of foundations and nonprofits first proposed the idea for an Emergency Charity Stimulus in May with a letter to Congress. The letter has now been signed by more than 550 philanthropists and leaders of foundations and several thousand nonprofit organizations, leaders and staff.
The proposal contains the following measures: 1) Mandating a temporary doubling of private foundation payout from 5 percent to 10 percent for three years, and 2) Establishing a similar 10 percent payout for donor-advised funds (DAFs) that currently have no payout mandate.
Researchers at the Institute for Policy Studies estimate these policies would unleash $200 billion in additional charity funds over three years. The independent nonprofit sector is part of the front-line response to the pandemic and other natural disasters such as forest fires and hurricanes. The sector employs 12 million workers or more than 10 percent of the private workforce. A recent report predicts that as many as 38 percent of non-profit organizations may close as a result of the pandemic.
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Common Dreams | Radio Free (2020-12-15T19:54:38+00:00) “MacKenzie Scott’s Bold and Direct Giving Puts Shame to the Billionaire Class and their Perpetual Private Foundations.”. Retrieved from https://www.radiofree.org/2020/12/15/mackenzie-scotts-bold-and-direct-giving-puts-shame-to-the-billionaire-class-and-their-perpetual-private-foundations-2/
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