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The Case for Trust: What a Study of Unrestricted Giving Revealed

In February 2025, a three-year study of more than a thousand organisations that received large, unrestricted gifts found the effects overwhelmingly positive. It strengthens a quiet revolution in how funders relate to nonprofits.

Written by Rajiv Bhargava, Founder & Executive Director

February 18, 2025 · 2 min read

For much of modern philanthropy, the prevailing assumption has been that large gifts should come with strict conditions: specified purposes, detailed budgets, frequent reports. The logic was stewardship. The effect was often to burden organisations with administration and to limit their ability to respond to changing needs.

On 18 February 2025, the Center for Effective Philanthropy released the findings of a three-year study of more than 1,000 organisations that had received large, unrestricted gifts from philanthropist MacKenzie Scott — part of more than US$19 billion given to over 2,000 organisations in roughly five years. The study found the effects on recipients to be overwhelmingly positive.

What trust made possible

Organisations reported using the funds to strengthen their finances, invest in their people and plan for the long term. Notably, many were spending the money deliberately rather than quickly, and concerns that such gifts might overwhelm recipients or deter other donors did not materialise.

In other words, when trusted with flexible resources, nonprofits largely behaved as thoughtful stewards.

Why this matters at every scale

Few donors will ever give on this scale. The principle, however, applies universally. An individual donor who gives an unrestricted gift, a community foundation that offers multi-year operating support, or a company that allows its grant to be used where most needed — each extends a form of trust that enables better work.

Trust with accountability

Trust is not the absence of accountability. It is a different kind of accountability — one grounded in relationships, honest reporting and shared learning rather than in rigid conditions. Organisations that receive flexible support honour it by being transparent about how it was used and what it achieved.

A personal conviction

I have long believed that the people closest to a problem are usually best placed to decide how resources should be applied. This study offers substantial evidence for that conviction. It invites all of us — donors large and small — to consider whether our generosity empowers the organisations we support, or merely supervises them.

This article is commentary and personal reflection, not news reporting. Facts and figures are drawn from the publicly available sources listed below; the views expressed are the author’s own.

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