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Home»Business
Business

How Billionaires such as MacKenzie Scott and Reid Hoffman are Collaborating with a Nonprofit to Disrupt the Realm of Philanthropy

April 28, 2024No Comments3 Mins Read
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Lever for Change, a nonprofit founded with the goal of democratizing philanthropy, has been working with billionaire donors to help them distribute their wealth to grassroots organizations outside their immediate network. The organization has partnered with MacKenzie Scott’s Yield Giving, among others, to run challenges where nonprofits can apply for unrestricted grants. The most recent “Open Call” competition saw over 6,300 submissions, with 250 winners receiving a total of $640 million in unrestricted donations.

The idea for Lever for Change came about in 2016, when Cecilia Conrad, who had spent years as an economics professor before joining the MacArthur Foundation, pitched the concept to LinkedIn cofounder Reid Hoffman. Hoffman joined as a founding member, and Lever for Change was founded as a spinout from the MacArthur Foundation with $20 million in seed funding. Since then, the organization has facilitated over $2.2 billion in grants to causes like refugee aid and gender and racial equity.

Lever for Change operates by running challenges where nonprofits apply for grants online, undergo evaluation by multiple reviewers, and then are selected by the sponsoring donor. The organization also manages the “Bold Solutions Network,” which includes 116 top-scoring nonprofits from its challenges. Hoffman, a vocal supporter of Lever for Change, has contributed both operational funding and pledges for future support to help advance the organization’s mission.

Despite efforts from organizations like Lever for Change to shift the focus of philanthropy towards smaller nonprofits, wealthy donors often continue to give to established institutions within their network. There is a significant gap between donors’ intentions to fund a more diverse range of local nonprofits and their actual giving practices. Lever for Change sees its work as part of a larger movement in philanthropy, along with other organizations like Blue Meridian, the Audacious Project, and Co-Impact, all founded in the last decade with similar aims of curating networks of potential grant recipients and pushing for a more diverse range of recipients.

While the traditional model of philanthropy may still dominate, organizations like Lever for Change are making strides towards a more inclusive and diverse approach to giving. By working with wealthy donors to support smaller grassroots organizations, Lever for Change is helping to shift the focus of philanthropy towards causes that may not have received as much attention in the past. With continued support from donors like MacKenzie Scott and Reid Hoffman, Lever for Change is poised to continue making a significant impact in the world of philanthropy.

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