MacKenzie Scott is a philanthropic powerhouse, known for her unrestricted donations to charities across the globe. As the world’s 35th richest person, she has given away a staggering $14 billion, with all her donations being unrestricted. This means that the recipient organizations have the freedom to decide how to use the funds, as opposed to restricted donations where funds are earmarked for a specific project.
Scott's approach to giving is unique and impactful. She believes in the power of unrestricted donations because she trusts the organizations to make the right choices. This trust is a significant factor in how she evaluates potential charities. Despite having a giving team, Scott does not assume they can single-handedly come up with the solutions to major problems. Instead, she believes in a collaborative approach, tapping into the diverse thoughts and backgrounds of on-the-ground non-profits.
This approach to giving has numerous benefits for charities. It provides them with the flexibility to address their most pressing needs and to implement lasting solutions without worrying about funding constraints. It also gives them the strength and stability to support their employees.
While Scott's giving strategy may not be right for everyone, it offers valuable insights for those looking to make a significant impact with their donations. Whether you're responding to a humanitarian crisis or looking to solve long-term problems, the decision between unrestricted and restricted donations should be guided by what you hope to achieve with your financial gift.
If you're considering making a donation, Daffy is a great option for a Donor-Advised Fund (DAF). At Daffy, we understand that while most charities appreciate the flexibility of unrestricted donations, there may be situations when you prefer your donation to be designated for a specific purpose. We are here to help you make the biggest impact with your donation, just like MacKenzie Scott.
Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.