The Center for Effective Philanthropy (CEP) recently released the final report in its three-year study on the impact of MacKenzie Scott’s large, unrestricted gifts to nonprofits. The study reaffirms what many in the sector have suspected. Scott’s approach has profoundly strengthened recipient organizations, enabling them to expand programs, increase financial stability, and invest in long-term impact.

At SureImpact, we applaud Scott’s efforts to transform the way philanthropy supports the social sector. By offering substantial, unrestricted funding, she has given nonprofits the opportunity to focus on their mission rather than on compliance. Her trust-based approach challenges traditional funding models and demonstrates the value of believing in an organization’s ability to make the best decisions for its future.

Scott’s generosity has been transformative for the organizations that received funding. However, only a small percentage of nonprofits will ever receive such a gift. This raises an important question. What can the rest of the sector learn from those that did?

What Sets MacKenzie Scott Grantees Apart?

CEP’s report highlights that Scott’s “Quiet Research” process identified nonprofits with high potential for sustained positive impact. These organizations shared several key traits:

• Strong Financial Health: Recipients had stable finances and used the grant to strengthen long-term sustainability rather than just meet immediate needs.

• Clear Measurement of Outcomes: They had a track record of tracking and demonstrating their impact through data.

• Strategic Use of Funds: Rather than simply expanding services, many organizations used the grants to build reserves, improve staff compensation, and invest in operational improvements that support long-term success.

These factors are not only relevant to MacKenzie Scott grantees. They are lessons for all nonprofits looking to increase their financial resilience and impact.

Data-Driven Organizations Raise More Money

One of the most striking findings from CEP’s study is that organizations that track and report on their impact are better positioned to raise additional funding. Nonprofits that used their Scott grant to enhance their data collection and evaluation capabilities were able to demonstrate success, attracting new donors and funders in the process.

This aligns with what we see at SureImpact every day. Funders want to invest in organizations that can show measurable results. When nonprofits systematically track their outcomes, they not only improve their own effectiveness but also build credibility and trust with funders, leading to long-term sustainability.

Unrestricted Funding and the Funder-Nonprofit Relationship

The report also highlights an ongoing debate in philanthropy. Some nonprofits advocate for more unrestricted funds, arguing that flexible funding allows them to be more responsive to community needs.

However, some funders in CEP’s survey expressed concern that unrestricted funding can be a missed opportunity for collaboration between funders and grantees. They believe that working together to set goals and measure progress leads to learning opportunities and stronger, more effective programs.

At SureImpact, we see the potential for a middle ground. When funders and nonprofits engage in collaborative impact measurement, they create a shared understanding of what is working and what needs improvement. This approach allows for both flexibility and accountability, ensuring that resources are used effectively while still empowering nonprofits to make mission-driven decisions.

The Path Forward: Building Capacity for Long-Term Change

MacKenzie Scott’s philanthropy is a bold experiment that has already shifted conversations in the social sector. While few organizations will receive a Scott grant, every nonprofit can take steps to build the capacity that makes such transformative gifts possible.

At SureImpact, we are committed to helping nonprofits and funders work together to drive measurable, long-term change. Our platform empowers organizations to track, analyze, and communicate their impact. These capabilities are critical for securing funding and improving outcomes.

Not every nonprofit will receive a large, transformative gift, but every organization has the ability to strengthen their organization and their community. By prioritizing data, financial sustainability, and meaningful collaboration, we can build thriving communities and create lasting impact.

Learn how to strengthen your nonprofit’s impact measurement and fundraising capacity. Download the Ultimate Guide to Impact Measurement.

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