Much has been written about the extraordinary grant-making of businesswoman MacKenzie Scott. To date, her Yield Giving foundation has granted over $14 billion to 1,600+ nonprofits to help them achieve their missions.
Scott is a member of the Giving Pledge. When she signed the pledge, she said:
“I have a disproportionate amount of money to share. My approach to philanthropy will continue to be thoughtful. It will take time and effort and care. But I won’t wait. And I will keep at it until the safe is empty.”
Previously, Ms. Scott’s team researched potential nonprofit awardees without disclosing the details of their review. Nonprofit CEOs who were awarded the funds noted the secrecy of the process and expressed their shock at receiving the incredible gifts. But now, Ms. Scott has announced a new “Open Call” initiative to invite community-focused nonprofit organizations to apply for aid directly.
Let’s review what your nonprofit needs to know about this new program and other details about Ms. Scott’s giving process.
About the Mackenzie Scott foundation Open Call
Launched on March 21, 2023, the $250 million MacKenzie Scott “Yield Giving Open Call” aspires to elevate organizations working with people and in places experiencing the greatest need in the United States.
The initiative seeks “community-led, community-focused organizations whose explicit purpose is to advance the voices and opportunities of individuals and families of meager or modest means, and groups who have met with discrimination and other systemic obstacles.” These organizations are invited to apply for the opportunity to undergo a review process and potentially be rewarded an unrestricted operating gift of $1 million.
Applicants will be evaluated on a predetermined scoring process that aims to decrease assessment bias. The scoring rubric focuses on equity, track record, community leadership, and team capacity.
Nonprofits must have an annual operating budget of at least $1 million and no more than $5 million for at least two of the last four fiscal years to be eligible.
Application timeline and review process
The registration period is now open. Organizations must register to apply before 4 p.m. U.S. Central Time on Friday, May 5, 2023. Finalized applications are due before 4 p.m. U.S. Central Time on Monday, June 12, 2023.
After applications are submitted, organizations will partake in an “Administrative Review” as well as a “Participatory Review” by other applicants. Then, in the fall of 2023, “up to 1,000 finalists top-rated by their peers will advance to a second round of review.” The second round will be conducted by “an external Evaluation Panel recruited for experience relevant to this cause.” In other words, a team of donors will select from among the organizations recommended by their peers and announce 250 awardees in early 2024.
Additional benefits of MacKenzie Scott donations
While an application is required to be considered for the $1 million unrestricted gifts (and ten hours is the estimated time it will take to complete the form), no financial or narrative reporting is required after receiving the award. Ms. Scott does her due diligence up front and then trusts each nonprofit to make the best decision on how the money is spent.
In addition, applicants may receive a $500 donor-advised fund contribution, but only if they participate in scoring the submissions of five fellow applicants and complete those assessments satisfactorily.
Full details about the application process, including FAQ, the organizational readiness tool, the timeline, the scoring process, the rules, and the evaluation panel are all available here.
Final thoughts
Some worry that this new initiative will be the fundraising equivalent of the Oklahoma land rush and that smaller nonprofits should not get their hopes up. They consider Ms. Scott more of an exhibitionist than a philanthropist.
We, however, are not among them. We applaud Ms. Scott’s generosity, openness, and earnestness. She is listening to us and adapting her giving.
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