Brifing

Contrasting Philanthropic Models in Democracy Funding

Comparing MacKenzie Scott’s unrestricted giving against donor-named university institute endowments.

Fortune | FORTUNE2 min

1Divergent Philanthropic Strategies

MacKenzie Scott has distributed over $26 billion since 2019 using a trust-based, unrestricted model. Conversely, major donors to democracy programs often prefer establishing named university institutes. While Scott empowers recipients to determine spending, traditional donors frequently tie their capital to specific centers that carry their personal family names.

2Democracy Funding Trends

The Chronicle of Philanthropy identified 18 gifts exceeding $1 million for democracy programs since 2006, totaling $369.2 million. Funding accelerated significantly between 2021 and 2025, accounting for 72% of the total volume. The year 2024 marked a peak in this specific sector, with $84 million in publicly announced donations recorded.

3The Power of Naming

University institutes captured roughly 80% of the tracked democracy funding. The four largest individual gifts, totaling $189 million, were directed toward institutions bearing the donors' names. This model contrasts sharply with Scott’s approach, which avoids branding requirements and instead focuses on providing organizations like Democracy Works with flexible operational capital.

4Case Study: Schaeffer Institute

Leonard Schaeffer, founder of Wellpoint, provided the largest single gift on the list. In 2024, he and his late wife Pamela donated $59 million to launch the Leonard D. Schaeffer Institute for Public Policy Government Service at USC. This center operates within the university's Capital Campus located in Washington, D.C.

5Endowing Political Research

Francis and Kathleen Rooney contributed $55 million to the University of Notre Dame in 2025 to endow the Rooney Democracy Institute. This gift evolved from a center established by the couple in 2008. Francis Rooney, a former Republican House representative, previously served as the CEO of the firm Rooney Holdings Inc.

6Institutional Matching and Growth

At the University of Virginia, Bruce and Martha Karsh provided $50 million in 2021 to establish the Karsh Institute of Democracy. The university committed to matching this donation. John Nau III’s foundation later added $15 million to the endowment, making UVA the largest recipient of democracy-focused gifts on the list.

7Constitutional Democracy Support

Richard and Nancy Kinder donated $25 million to the University of Missouri in 2022, expanding the Kinder Institute on Constitutional Democracy. This contribution brought their total support for the institute to $60 million since 2015. Kinder, a cofounder of Kinder Morgan, maintains a long-standing financial connection to his alma mater.

8Philanthropic Sector Priorities

Despite these large-scale democracy gifts, such programs remain a minor fraction of total philanthropic output. Wealthy donors continue to prioritize education and health care, which remain the top categories for both Scott and other major contributors. Scott’s own data shows health care as a primary focus for her Yield Giving organization.

Original article: Fortune | FORTUNE — Contrasting Philanthropic Models in Democracy Funding