MacKenzie Scott’s Philanthropic Efforts: A Story of Kindness and Gratitude
MacKenzie Scott, one of the world’s wealthiest women and most influential philanthropists, has been making headlines with her “no strings attached” surprise grantmaking. However, few people know that she has also been on the receiving end of generosity, which has had a profound impact on her life and philanthropic efforts. As a Princeton University sophomore, Scott faced the prospect of dropping out due to financial constraints, but her roommate, Jeannie Tarkenton, came to her aid with a loan from her father.
Tarkenton’s act of kindness has had a lasting impact on Scott, who has since donated over $19 billion to various causes, with a focus on equity, higher education, and economic security. Scott’s net worth is estimated to be around $34 billion, according to Forbes. In a recent essay, Scott wrote about the ripple effects of kindness, highlighting Tarkenton’s loan as an example of the power of generosity and gratitude.
A Full Circle Moment: Funding U and MacKenzie Scott’s Investment
Years later, Tarkenton founded Funding U, a lending company that offers last-gap, merit-based loans to low-income students without co-signers. Scott, who has been a long-time supporter of Tarkenton’s mission, invested in the company, providing “junior debt” to reduce the risk for larger investments from banks such as Goldman Sachs. This investment is a testament to Scott’s commitment to creating opportunities for those who may not have had them otherwise.
According to Marybeth Gasman, who runs Rutgers’ Center for Minority Serving Institutions and follows Scott’s donations, “She’s looking for innovative ways to create opportunity for those that don’t have it.” Gasman, who herself received a Pell Grant to attend school, finds Scott’s approach to philanthropy “really meaningful.” Funding U’s algorithm-based approach to determining loan eligibility is seen as a fairer and more predictive method than traditional criteria, which often rely on credit histories or co-signers.
A New Model for Philanthropy: Combining Capital and Social Impact
Tarkenton’s approach to Funding U represents a new model for philanthropy, one that combines capital from philanthropists with market-based solutions to address social issues. By providing concessionary rates and waiting longer to recoup investments, philanthropists like Scott can create a greater impact while still generating returns. This approach has the potential to amplify the effects of philanthropy, making it a more effective tool for creating positive change.
As Gabrielle Fitzgerald, founder of Panorama, a social impact nonprofit that tracks Scott’s giving, notes, “It shows that she’s using all the tools at her disposal to pursue her goals.” Fitzgerald sees Scott’s investment in Funding U as “very consistent with her approach to ensuring students have access to higher education.” The full circle impact of Tarkenton’s college-era loan is a testament to the power of kindness and generosity, highlighting the importance of helping others and creating opportunities for those who may not have had them otherwise.
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