Billionaire philanthropist MacKenzie Scott has been making waves in the world of charitable giving since 2019 when she started donating her immense fortune after her divorce from Amazon founder Jeff Bezos. This publication has covered her adventures in philanthropy time and time again. Here is just one example:
Her unrestricted and unexpected donations to nonprofits have surpassed $14 billion, benefiting 1,600 organizations across the United States. Recently, her organization, Yield Giving, announced its first-ever open call for grants, inviting nonprofits to apply for a chance to receive a transformative $1 million grant. This move has sparked both excitement and challenges within the philanthropic sector.
The Open Call for Grants and Its Impact
When the open call for grants was announced, nonprofit organizations from all 50 states, Puerto Rico, and the U.S. Virgin Islands responded eagerly, sending in a staggering 6,353 applications. This represents an approximately 4% chance of being selected for one of the coveted 250 grants, which will be announced in early 2024. While the open call created a pathway for organizations to apply, it also increased the pressure on fundraisers and nonprofits to stand out and win Scott's support.
Implications for Nonprofits
The eligibility criteria of the open call presented some challenges for smaller organizations. The requirement of having budgets between $1 million and $5 million excluded many nonprofits that could greatly benefit from a million-dollar grant. According to a 2019 report by the National Council of Nonprofits, only about 5% of nonprofits fall within this budget range, leaving many deserving organizations unable to participate.
Moreover, Scott's funding opportunity comes at a time when nonprofits are facing inflationary pressures and attempting to replace government funding that was provided during the pandemic, which is now dwindling. The 2022 Giving USA report showed a drop in charitable donations, the fourth time in four decades, adding to the financial strain on nonprofit organizations.
Nonprofits had to weigh the benefits of applying against the competitiveness of the process. Some, like Danielle Gletow, founder of One Simple Wish, opted not to apply, believing the focus was on organizations led by members of the communities they serve. Getlow was recently quoted on the Fortune magazine website, ““The tricky part when we say we want to be an ally is in doing things that are a little bit uncomfortable and against what you would normally do,” she said, adding her organization obviously would love to speak with Scott and get her support. “I feel like part of doing this right is sometimes saying, ‘This is my time to just sit it out.”
Personally, I have been the same boat is Getlow. As someone who leads and manages a large non-profit organization, chasing dollars is rarely a great strategy, especially from a foundation that isn’t always clear on what they will and will not fund. In this line of work, Executive Directors and Development Directors often have to determine if the “juice is worth the squeeze” as an old friend continually reminds me.
Others, like Melanie Lambert, a grant writing consultant, discussed the challenges with her clients, questioning whether the resources and effort required to apply were worth the potential benefits. Lambert was quoted in the same publication, ““It makes me feel like it’s my responsibility to be realistic with the nonprofits that are interested in it, particularly because they’re going to be paying me money to do this.”
Managing the Influx of Applications
Lever for Change, the nonprofit overseeing the application process, has an enormous task at hand. Evaluating thousands of applications within the set timeframe poses a significant challenge. To manage the volume, applicants will participate in the evaluation process by reviewing other applications based on criteria provided by Lever for Change. A panel of reviewers will then assess the top 1,000 applications, after which Scott and her team will select the final 250 organizations to receive grants in the spring of 2024.
MacKenzie Scott's open call for grants has undoubtedly shaken up the world of philanthropy, creating both excitement and challenges for nonprofit organizations. The immense response to the call demonstrates the demand for funding and the urgency nonprofits feel to secure financial support. While some organizations chose not to participate due to the competitive nature of the process, others saw it as an opportunity to make a meaningful difference. The implications of this open call will undoubtedly be felt throughout the philanthropic landscape, as organizations continue to adapt to changing funding dynamics and strive to create a positive impact on the communities they serve.
The Weekly Notebook
A few notes and ideas of things I am seeing and hearing on the nonprofit world.
Our Other Publication is Growing!
I recently started a new substack that is focusing on my work here in my hometown of Troy, Ohio and it is growing like the grass in yard after the much needed rain this week! The Civic Capacity substack has been stewarding the positive energy that came from a close Mayoral election into productive conversations about our community. Even if you aren’t from the Troy community, I do believe you will find some interesting ideas and concepts about local government and I would love for you to be a part of the conversation we are having over there!
Please check it out and let me know what you think! You can find it here:
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I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
The Air Force Marathon at Wright-Patterson Air Force Base near Dayton, Ohio is also looking for a non-profit professional. Learn more here: https://www.usajobs.gov/job/732561200
If you or your nonprofit would like to advertise a job opening here, please shoot me an email at pinnaclestrategiesltd@gmail.com
How Can We Work Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
Ready to Learn Something New?
One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Online Learning Options from Texas A&M Announced
If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!
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