Lever for Change: How ‘big bet philanthropy’ is transforming the sector 

I am an economist by training. But when my colleagues at the John D. and Catherine T. MacArthur Foundation and I established Lever for Change five years ago, we didn’t use any complex formula in setting our goal of mobilizing $1 billion by 2023.  

We wanted to be ambitious, be audacious, and grab headlines. A billion dollars, an order of magnitude greater than the foundation’s record-setting $100 million annual grant program, checked all those boxes. Our mission: to accelerate “big bet philanthropy,” the practice of making multimillion-dollar investments in a single organization with the intention of transforming a sector, issue, or organization. 

Big bet philanthropy has gone mainstream 

Five years later, we’ve achieved our goal and then some. We surpassed the $1 billion milestone in 2022. By the end of 2025, we expect to have mobilized $2.5 billion to support the work of remarkable organizations. 

Of course, our goal has always been about more than money. We also aim to transform the philanthropic sector so that it is more nimble, courageous, and action-oriented and can disburse grant dollars more quickly. 

And I’m delighted to say that we can see evidence of this transformation. Big bet philanthropy has gone mainstream. What was a tiny band of believers a few years ago—including the Audacious Project, MacKenzie Scott, Blue Meridian, and Co-Impact—has been joined by Borealis Philanthropy, ICONIQ Impact, LEGO Foundation, Melinda French Gates’ Pivotal Ventures, W. K. Kellogg Foundation, and others. 

Big bet philanthropy is elevating giving at scale 

As we celebrate this milestone, we want to share what we’ve learned about how giving at scale is changing:  

Rely on experts to move resources efficiently 

Our work and the success of a growing number of donor collaboratives demonstrates that ultra-high-net-worth individuals don’t need to hire staff and maintain a foundation to make wise philanthropic investments. Instead, philanthropists can rely on organizations that already have the back-end staff, the expertise, and the experience needed to move resources efficiently, effectively, impactfully, at scale, and at speed—to define their goals, issue an open call for proposals, review the proposals, and identify those best positioned to make transformative impact.  

Trust in collaborative relationships 

Increased due diligence on the front end is helping many philanthropists embrace trust-based philanthropy. The values of trust-based philanthropy support a more collaborative relationship between the funder and the recipient organization. Often, this means leaving space for grantees to define the problems and solutions impacting their work, allowing them to guide donors on the most effective ways to measure impact and track progress, and minimizing report writing. The combination of trust-based philanthropy and big bet philanthropy can significantly amplify the potential for impact. MacKenzie Scott and Ballmer Group are among those who have embraced this approach.  

De-risk investments 

Despite having made their billions by funding innovators with little more than a dream, many wealthy individuals tend to be risk-averse in their philanthropy. Strategic vetting and due diligence by donor collaboratives and organizations like mine, along with advising and guidance, can minimize risk. Lists of vetted, shovel-ready game-changing investments include our Bold Solutions Network, the Audacious Project’s Ideas Archive, and Global Giving’s list of Vetted, Top Ranked, and Effective Nonprofits. 

Give in proportion to the challenge, not organization size 

The size of gifts should be based not on the size of the organization’s past or current budget but the size of the challenge to be addressed. Funders can help build the capacity of small organizations to use the funds effectively. For example, when the MacArthur Foundation awarded its first $100 million grant to Sesame Workshop and the International Rescue Committee, it gave the organizations six months to refine their plans for how to use the funds. Similarly, when the W.K. Kellogg Foundation awarded two eight-year, $20 million grants, it also provided nine months of capacity-building support. 

Lift up issues with prize philanthropy 

Alongside the 14 competitions Lever for Change has supported over the last five years, we’ve seen a surge in prize philanthropy, one approach within big bet philanthropy. Philanthropists increasingly recognize that well-designed competitions can elevate important issues and the organizations best placed to address them, while moving funding at scale quickly and efficiently. The number of such competitions has grown from 36 in 2005-09 to almost 600 in 2015-20. Examples include Elon Musk’s $100 million prize for carbon removal and Google.org’s $25 million Impact Challenge for Women and Girls.  

Give while you live 

With the growing ease of giving at scale and cultural changes supported by The Giving Pledge, Atlantic Philanthropies, my organization, and others, more ultra-high-net-worth individuals are giving most of their fortunes away while they’re alive. Today, the United States is in the midst of the largest intergenerational transfer of wealth in its history. Economists estimate that $84 trillion will be passed down over the next two decades. What Lever for Change has achieved in terms of funds mobilized and impact is just a fraction of what is possible. 

The ongoing changes in big bet and trust-based philanthropy can help advance a sector capable of harnessing these trillions at speed and with strategic precision to solve the world’s most pressing problems. 

Photo credit: Lever for Change