Billionaire philanthropist’s donation supports UNCF’s $1 billion campaign to strengthen 37 historically Black colleges and universities through endowment growth

MacKenzie Scott has donated $70 million to the United Negro College Fund as the organization works to raise $1 billion to strengthen all 37 of its member historically Black colleges and universities. The gift represents one of Scott’s largest single donations and among the first publicly disclosed in 2025.

The donation will support UNCF’s pooled endowment initiative, which aims to establish a $370 million fund providing $10 million for each member HBCU. The fund will be invested to generate approximately 4% annual returns, with proceeds distributed among the institutions to help stabilize their operating budgets.

UNCF celebrates transformational investment

UNCF President and CEO Dr. Michael L. Lomax described the donation as an extraordinary gift representing a powerful vote of confidence in HBCUs and the organization’s work. He emphasized that the contribution provides a once-in-a-generation opportunity for member institutions to build permanent assets supporting students and campuses for decades.

Lomax noted that increasing HBCU endowments remains a critical priority since these institutions trail endowments at non-HBCUs by 70%. The substantial funding disparity has long challenged historically Black colleges in their efforts to provide competitive educational opportunities and maintain financial stability.

Scott’s contribution directly addresses these funding gaps by creating sustainable income streams that will benefit HBCU students and operations over the long term rather than providing one-time support.

Broader campaign addresses systemic funding disparities

The $1 billion fundraising effort represents an ambitious attempt to help HBCUs address the significant funding disparities they face compared to other colleges and universities. Research demonstrates the scale of these challenges in philanthropic giving patterns.

A 2023 study by philanthropic research group Candid and ABFE found that the eight Ivy League schools received $5.5 billion from the 1,000 largest US foundations compared to just $45 million for 99 HBCUs in 2019. This dramatic difference illustrates the systemic underfunding that historically Black institutions have experienced.

The UNCF campaign seeks to establish more equitable funding patterns by building substantial endowments that can provide ongoing financial support. These permanent funds will help HBCUs compete more effectively for students and faculty while expanding educational programming.

Scott continues pattern of HBCU support

Scott has consistently supported historically Black colleges since signing the Giving Pledge in 2019, promising to donate more than half her wealth during her lifetime. HBCUs have emerged as favorite recipients of her philanthropic efforts.

The novelist, who received the majority of her fortune after divorcing Amazon founder Jeff Bezos, previously donated $10 million to UNCF in 2020. Her continued support demonstrates sustained commitment to addressing educational inequities affecting Black students.

Scott has explained that her funding decisions are driven by deep belief in the value different backgrounds bring to problem-solving on any issue. This philosophy aligns with the mission of HBCUs to provide educational opportunities for underrepresented students.

Unrestricted giving approach proves effective

Scott’s unusual donation approach provides much larger gifts than most foundations offer while carrying no restrictions on timing or usage. This flexibility has financially strengthened nonprofits that received her support, according to research by The Center for Effective Philanthropy.

Phil Buchanan, president of the organization, noted that their three-year study of Scott’s giving found little evidence of predicted negative consequences. Despite concerns that large unrestricted gifts might cause recipients to increase staffing excessively or hurt other fundraising efforts, organizations demonstrated prudent management.

The study of 2,000 nonprofits showed that carefully vetted organizations could be trusted to make good use of substantial unrestricted funds. This finding supports Scott’s approach of providing maximum flexibility to recipient organizations.

Scott’s total giving reaches $19.2 billion

Scott has not made public announcements about her giving since acknowledging $2 billion in gifts during 2024, bringing her total donations to $19.2 billion. Forbes currently estimates her net worth at approximately $34 billion.

Her giving pace has accelerated significantly since signing the Giving Pledge, with annual donations often exceeding $1 billion. This sustained high level of philanthropy has made Scott one of the most generous donors in American history.

The scale and speed of Scott’s giving has influenced philanthropic practices, encouraging other wealthy donors to consider larger and less restricted contributions to nonprofit organizations.

UNCF hopes to inspire additional funders

UNCF leadership hopes Scott’s example will encourage other philanthropists to support historically Black colleges at similar scales. The organization emphasizes that Scott’s approach of entrusting recipients to determine best use of funds demonstrates confidence in HBCU leadership.

Lomax expressed deep gratitude for Scott’s continued support, noting that her generosity affirms that HBCUs merit investment at this scale. The donation will strengthen member institutions while providing pathways to success for future changemakers.

The organization plans to use Scott’s contribution as leverage to attract additional major donors to the $1 billion campaign. Demonstrating support from such a prominent philanthropist may encourage other foundations and wealthy individuals to increase their HBCU investments.

Long-term impact on Black higher education

The pooled endowment approach represents an innovative strategy for addressing chronic underfunding at historically Black colleges. By creating sustainable revenue streams, the initiative aims to provide financial stability that will benefit multiple generations of students.

Endowment income will help HBCUs maintain competitive faculty salaries, upgrade facilities, expand academic programs, and provide enhanced student services. These improvements should strengthen the institutions’ ability to attract and retain both students and faculty.

The initiative also demonstrates collaborative approaches to addressing systemic challenges in Black higher education, with individual institutions benefiting from collective fundraising and investment strategies.