A new era in philanthropy is unfolding as higher taxes threaten liberal institutions and billionaires are forced to rethink their giving strategies. MacKenzie Scott, a pioneer in cultural shift, has donated over $200 million to historically black colleges and universities (HBCUs) and charitable causes. The impending sunset of Bill Gates’ foundation and Warren Buffett’s departure from Berkshire Hathaway may accelerate this change.
As the influence of liberal foundations like those led by Gates, Scott, and George Soros is impacted by proposed tax hikes on foundations with over $5 billion in assets, billionaires are exploring alternative ways of giving. Women mega-donors, including Scott, are popularizing new methods, such as “stealth giving,” which involves donating unrestricted money directly to nonprofits.
Experts predict that women will become more prominent in philanthropy as the industry undergoes a transformation. MacKenzie Scott’s approach, where she trusts recipients to handle funds without strings attached, is being studied and emulated by others. As women take on more wealth and power, their influence on philanthropy will only grow.
The shift away from traditional foundations may lead to a more diverse group of donors taking the lead. While some billionaires are already rewriting the rules, others will need to adapt to the new landscape. With over 200 new billionaires emerging in 2024 alone, the philanthropic landscape is set for significant change.
Source: https://fortune.com/article/hundreds-billionaires-pledge-give-away-600-billion-charity-bill-gates-warren-buffett-era-philanthropy-over-mackenzie-scott