Bill Gates and Warren Buffett helped shape a modern age of large-scale philanthropy, often compared to the legacy of the Rockefellers and Carnegies. Yet the future of this sector is poised for major transformation, driven by shifting tax policies and the rise of women mega-donors like MacKenzie Scott — who has already contributed more than $200 million to HBCUs and other nonprofits in recent months.
Earlier this year, Gates announced plans to wind down his foundation and distribute $200 billion by 2045, accelerating efforts to give away his personal fortune of around $100 billion.
“There’s an air of anticipation in terms of if and how people are going to follow in his footsteps,” Amir Pasic, dean of the Lilly Family School of Philanthropy at Indiana University, told Fortune in May.
Warren Buffett will also step away from Berkshire Hathaway at the end of this year, signaling another major transition. His Giving Pledge — with more than 250 billionaire signatories across 30 countries who have collectively committed at least $600 billion — set a powerful precedent. But experts now wonder whether future billionaires will uphold that momentum once Buffett exits the spotlight.
While a shift is clearly underway, analysts emphasize this isn’t the end of big-ticket charity. Instead, it may mark the rise of a more diverse leadership.
“We’re likely to see more women come out of the shadows,” Pasic predicted.
How Philanthropy Is Being Reimagined
Foundations have long served as the primary structure for billionaire giving. But recent moves by U.S. lawmakers could discourage that approach. A budget reconciliation package approved in May included a new 10% tax on foundations holding more than $5 billion in assets.
“The reason this is insidious is that it’s going to really hit the big liberal foundations like Gates, Ford, and Soros,” Kathleen McCarthy, director of the Center on Philanthropy at CUNY, told Fortune. “Whereas the conservative foundations are much smaller and they will pay a much lower rate.”
These tax hikes could reshape how wealthy donors choose to give.
“[Billionaires] will start looking at alternative mechanisms once they realize that they’re going to be forced to sunset foundations,” McCarthy explained. “That’s what’s being jeopardized right now.”
Some high-profile donors are already adopting new models. Scott’s approach — often dubbed “stealth giving” — involves unrestricted contributions distributed directly to nonprofits, handing them full autonomy over how the funds are used.
According to McCarthy, donors frustrated by new tax burdens may increasingly look beyond the traditional foundation framework — and toward Scott-style direct gifting.
“I think she’s a trendsetter and sort of moral ballast to the way that Gates has been,” said Bella DeVaan, associate director of the charity reform initiative at the Institute for Policy Studies. “I do see that being not just a trend, but shifting common sense toward trust-based philanthropy.”
Scott’s Yield Giving organization has already distributed more than $19.25 billion to over 2,450 nonprofits. DeVaan also suggested that Melinda French Gates may help popularize philanthropic LLCs — flexible entities not bound by the stricter regulations imposed on standard foundations.
Philanthropy experts see a common thread: new voices, and especially women, are reshaping the landscape. With more than 200 new billionaires emerging in 2024 — nearly four every week — fresh leadership is arriving, and many of these leaders are women acquiring unprecedented wealth and influence.
Women Take the Lead in Transforming Philanthropy
When identifying successors to Gates and Buffett, one name consistently stands out: MacKenzie Scott.
Howard University recently announced an $80 million donation from Scott — one of the largest gifts in its 158-year history. In September, she also gave $70 million to UNCF as part of a $1 billion scholarship initiative. And in an effort to offset recent FEMA cuts, the Center for Disaster Philanthropy shared last month that Scott committed $60 million to support communities impacted by natural disasters.
“This is a woman making a pretty bold statement about how she’s going to give her money away: by trusting the recipients, and not asking for any reporting back,” Pasic said. “She’s in contrast to the very technocratic way that Bill Gates has approached matters.”
Other rising philanthropic leaders include French Gates, a key figure behind the Gates Foundation’s approach, as well as Priscilla Chan, who has partnered with Mark Zuckerberg in advancing innovation in global health. Experts also recognize that women have long been influential givers — often quietly — citing examples like Madam C.J. Walker, the first self-made female millionaire and a groundbreaking donor in the early 20th century.
In 2025 and beyond, as women gain even more access to wealth and power, their influence is expected to grow dramatically.
“You’ll see women becoming much more prominent mega-donors,” McCarthy said. “They’re very comfortable handling money. They’re very comfortable doing research, and they’re looking for ways to change the system.”
