A new generation of billionaires, many of whom amassed their fortunes in the recent tech boom, is fundamentally rewiring the world of philanthropy. Led by prominent figures like MacKenzie Scott, these philanthropists are moving away from the slow, bureaucratic foundations of the past, instead deploying billions of dollars with unprecedented speed and a “no strings attached” philosophy. Their focus is shifting from traditional charity toward tackling systemic issues like racial inequity, climate change, and economic mobility, marking the most profound transformation in large-scale giving since the era of Carnegie and Rockefeller.
The Great Philanthropic Shift
For over a century, the model for billionaire philanthropy was clear. Industrialists like Andrew Carnegie and John D. Rockefeller established massive, permanent foundations. These organizations operate like corporations, with boards, staff, and rigid grant-making processes that often take years to approve funding for specific, tightly controlled programs.
This model was later refined and scaled by the likes of Bill Gates and Warren Buffett through the Bill & Melinda Gates Foundation and the Giving Pledge. While their impact is undeniable, the methodology remained largely the same: a top-down approach where the donor dictates the terms and requires exhaustive reporting from the recipients.
Today’s new philanthropists view this model as too slow and restrictive to solve the world’s most urgent problems. Having built their wealth in the fast-paced, disruptive world of technology, they are applying a similar mindset to their giving: move fast, trust experts on the ground, and fund the foundational work that can lead to systemic change.
Architects of a New Giving Philosophy
While this movement is broad, a few key figures exemplify its core tenets. Their approaches, while varied, share a common thread of urgency and a desire to empower organizations rather than control them.
MacKenzie Scott: The Speed of Trust
No single person has defined this new era more than MacKenzie Scott. Following her 2019 divorce from Amazon founder Jeff Bezos, she pledged to give away the majority of her vast fortune. What has been truly revolutionary is how she has done it. Bypassing the creation of a traditional foundation, Scott and her team have given away over $16 billion in just a few years.
Her gifts are notable for two reasons. First, they are unrestricted, meaning the recipient organizations can use the funds however they see fit—for operational costs, new programs, or building an endowment. Second, she deliberately seeks out smaller, community-led organizations that are often overlooked by major donors, particularly those led by women and people of color.
This approach, often called “trust-based philanthropy,” places faith in the leaders on the front lines, freeing them from the burdensome grant reporting that often stifles innovation and consumes valuable resources.
The Effective Altruists: Data-Driven Impact
Another powerful force in this new landscape is the “effective altruism” movement, championed by figures like Facebook co-founder Dustin Moskovitz and his wife, Cari Tuna. Through their organization, Open Philanthropy, they use rigorous, data-driven analysis to find the causes where a dollar can do the most good.
This might mean funding seemingly obscure scientific research into tail risks like pandemics or rogue AI, or distributing anti-malaria bed nets in Africa, one of the most proven life-saving interventions. The goal is not emotional satisfaction but quantifiable maximum impact. They are, in essence, applying the logic of a venture capitalist to global problems, seeking the highest possible return on their philanthropic investment, measured in lives saved or suffering reduced.
This movement, however, also highlights the volatility of this new world. The spectacular collapse of the crypto exchange FTX and the conviction of its founder, Sam Bankman-Fried, a vocal proponent of “earning to give,” dealt a major blow to the effective altruism community, which had received hundreds of millions from him and his company. It served as a stark reminder of the risks associated with fortunes built on new and unstable technologies.
The Technologists Tackling Global Problems
Other tech founders are directing their resources toward solving specific, complex problems that reflect their own expertise and interests. Patrick and John Collison, the brothers who founded the payments company Stripe, have focused heavily on accelerating scientific progress and kickstarting the market for carbon removal technologies through their initiative, Stripe Climate.
Similarly, Airbnb co-founder Brian Chesky, a signatory of the Giving Pledge, has begun to direct his giving toward tackling homelessness and strengthening communities. This reflects a trend of philanthropists targeting the root causes of societal issues that their own industries are sometimes accused of exacerbating.
The New Playbook: Key Principles of Modern Philanthropy
The strategies employed by this new generation are not just different in scale, but in their fundamental DNA. They are rewriting the rules of what it means to be a major donor.
Unrestricted and Unencumbered Funds
The most significant departure from tradition is the rise of unrestricted giving. For decades, non-profits have been forced to spend an enormous amount of time and money applying for and reporting on specific program grants. A grant might pay for books for a literacy program but not for the electricity to keep the lights on or the salary of the person running it.
Unrestricted funds allow an organization’s leaders to allocate resources where they are most needed. This flexibility is critical for innovation, allowing groups to pivot to meet emerging needs and invest in their own long-term stability and growth. It is a fundamental transfer of power from the donor to the doer.
A Focus on Systems, Not Symptoms
Rather than simply donating to a food bank to feed the hungry, this new generation of philanthropists is more likely to fund organizations advocating for policy changes that address the root causes of food insecurity. They are interested in changing the systems that create problems in the first place.
This has led to a surge in funding for areas that traditional philanthropy often avoided, such as racial justice advocacy, voting rights protection, and climate change policy work. It is a longer-term, higher-risk bet, but one they believe offers a far greater potential for lasting change.
Inevitable Criticisms and Complex Questions
This radical shift is not without its critics. The concentration of so much power to shape society in the hands of a few unelected, ultra-wealthy individuals raises valid concerns for a democracy. While their intentions may be noble, their personal biases and priorities can direct billions of dollars toward certain issues while neglecting others.
Furthermore, the sheer speed of the giving can be disruptive to the non-profit sector, creating booms and busts. There is also the persistent debate over whether this large-scale philanthropy is a substitute for a fairer tax system. Critics argue that if billionaires were taxed more effectively, public funds could be allocated democratically to address social needs, rather than leaving those decisions to the whims of the wealthy.
Lessons for Donors of All Sizes
While few of us can give on the scale of a MacKenzie Scott, the principles of this new philanthropic movement offer valuable lessons for anyone looking to make a difference. The core idea of trust-based philanthropy is scalable. It means finding local organizations whose work you believe in and giving them unrestricted donations.
Instead of earmarking your $100 donation for a specific project, consider giving it to their general operating fund. This act of trust empowers them to use your contribution most effectively. It supports the unglamorous but essential costs of keeping a vital community resource running, a lesson that is perhaps the most powerful legacy of this new era.
The tectonic plates of philanthropy are shifting. The new guard of givers, armed with tech-derived fortunes and a startup mentality, is challenging a century of established practice. They are faster, more trusting, and more focused on dismantling the systems that perpetuate inequality. While their long-term impact and the societal questions their power raises are still unfolding, one thing is clear: the act of giving back will never be the same.
