MacKenzie Scott Shows A Better Way To Do Higher Ed Philanthropy

Most education philanthropy comes with more strings than Pinocchio and serves to benefit the givers as much as it does the institutions they give to. For years, boosters have restricted their gifts to support the multi-million-dollar football coach’s buyout or locker room upgrades while leaving the library in disrepair. Endowed chairs, funded buildings, and sponsored programs often seem calculated to create a tax shelter, secure admissions for the giver’s progeny, or  associate with prestige rather than to benefit students or society. 

2020 might have signaled an end to selfish self-aggrandizing philanthropy. 

MacKenzie Scott, author and the first accountant at Amazon, is leading a new wave of individual social impact philanthropy. Late in 2020, she announced her latest round of almost $6 billion in charitable gifts, bringing to more than $800 million her total donations to higher education in just one year. The unprecedented scale and pace of her giving isn’t the most impressive part of her actions. Her donations are data-driven and promote the public good rather than simply personal preference or self-interest. 

She wrote, “We do this research and deeper diligence not only to identify organizations with high potential for impact, but also to pave the way for unsolicited and unexpected gifts given with full trust and no strings attached.” 

Unlike typical highly publicized donations, none of Scott’s university gifts went to institutions that could be considered wealthy or prestigious. Representing a scale of giving these institutions don’t normally receive, the donations will be a driver of economic growth and social mobility for students who will benefit the most from the infusion of funding. 

Scott is not alone in her efforts. Notable donations from billionaires Robert F. Smith and Reed Hastings and Patty Quillin also appeared to focus on colleges that create social mobility and support typically overlooked students. Smith pledged to pay the student loan debt of the 400 graduates of Morehouse College in 2019 during his commencement address and then pledged an additional $50 million to launch the Student Freedom Initiative, a student loan alternative and mentorship program. Hastings and Quillin’s donation to two Historically Black Colleges and Universities (HBCUs) and the UNCF will impact the lives of more than 60,000 students. 

Mike Bloomberg’s $1.8 billion gift to Johns Hopkins University is arguably less impactful than his $100 million donation to four historically Black medical schools. While he donated 180 times more money to JHU, the contribution to Black students will have a far greater impact on the economy and society since the median family income of students at JHU is $177,000 and the median income for Black families is $30,134. 

The donations by Scott and Smith have led to a banner year for HBCUs, which are expected, according to HBCU Digest, to surpass $1 billion in total gift contracts in 2020. Given that HBCUs make up just 3% of the nation’s colleges but account for 20% of Black graduates, any investment into HBCUs will have outsized returns. Similarly, regional and community colleges also received record donations in 2020.  The continuation of support for the institutions that support the public good and operate as social mobility elevators for the middle class will have far greater benefit than supporting the institutions that continue to encode economic disparity. 

Scott and Smith are showing the billionaire class how to create a legacy that is far more impactful and important than their name on a building, stadium, or scholarship.