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What megadonors miss about health-focused nonprofits 

Learn how today’s ultra-high net worth individuals and megadonors can better ensure their gifts to health-focused nonprofits meaningfully improve the health, well-being, and quality of life for people and communities across the U.S.

October 21, 2024 By Natalie S. Burke

A pregnant Black woman holding her belly in a hospital room.

Well-intended, ultra-high net worth (UHNW) individuals are donating large sums of money to fund solutions for some of society’s most challenging problems. Over the past decade, it has become increasingly commonplace for those individuals to make mega gifts to other wealthy and at times famous people who have visibility, access, and power, as opposed to traditional nonprofit organizations that engage in social programming, capacity building, and direct services. For example, Jeff Bezos gave José Andrés, Van Jones, and Dolly Parton $100 million each to further their philanthropic projects. More recently, MacKenzie Scott gave Allyson Felix $20 million in support of her efforts to improve Black maternal health. 

The need to center performance over prestige 

According to Altrata’s Ultra High Net Worth Philanthropy 2024 report, “[a]lmost 20% of UHNW individuals have a private foundation. This share increases to almost 30% among those with a net worth of over $100 million, underlining the growing number and importance of private charitable foundations.” Those who gift significant resources to well-known individuals—who have limited experience leading community or population-based programming—also give them the power to decide to whom those dollars should be regranted within communities. While this approach avoids the bureaucracy that encumbers traditional philanthropy, it can effectively block and redirect resources from nonprofits that have been working for decades to improve health, well-being, and quality of life for millions of people. 

These organizations have well-established community networks, proven success at designing and implementing programs that increase health care access and create healthier communities, and the organizational infrastructures needed to manage resources effectively. They are led by experts in public health, health care, and community health who have the knowledge and wisdom to direct significant resources into communities with the greatest need for investment—those who experience health inequities.   

Opportunities for helping established health-focused nonprofits scale 

To continue their work, innovate, and scale proven solutions, these nonprofits require sustainable and flexible funding. In today’s crowded and competitive philanthropic landscape, they need to diversify their appeal beyond traditional foundations to include UHNW individuals who gift large sums, frequently with minimal restrictions and the freedom to experiment with new approaches.   

Experienced health-focused nonprofits can shift strategies to attract those megadonors, their dollars, and their influence. That shift starts with increasing the visibility of those organizations. Visibility leads to credibility, and credibility leads to sustainability.  

Three strategies for health-focused nonprofits to appeal to megadonors 

1. Develop strategic narratives and presence on social media

Develop a clear and compelling brand that resonates with both their traditional target audiences and potential megadonors. Strategic, data-driven storytelling can create lasting emotional connections and visibility beyond traditional philanthropy. Collaborate with influencers to amplify the nonprofit’s brand and bring them to the attention of UHNW individuals. 

    2. Partner with corporations and governments 

    Establish strategic partnerships with corporations, government agencies, and other nonprofits to increase visibility and credibility. Partnerships with corporations can involve cause-related marketing campaigns and sponsorships, while government partnerships might focus on aligning with public health initiatives. These partnerships can help nonprofits gain the attention of megadonors and more importantly, their representatives who serve as philanthropic advisors. 

      3. Step outside the health conference echo chamber 

      Attend and present at conferences and meetings where the interests of megadonors intersect with those of the nonprofit (e.g., technology and think tank conferences on diverse topics). While the UHNW individual might not be in attendance, their philanthropic advisors and others from within their networks are likely to attend and be accessible.   

      For megadonors looking to maximize the impact of their charitable gifts through direct giving strategies, it is essential to support experienced nonprofits that have served as the country’s safety net for generations—especially those with the infrastructure to manage substantial donations responsibly.  

      Considerations for megadonors to support health-focused nonprofits

      1. Organizational capacity and infrastructure 

      Keep in mind that established nonprofits—those with a proven track record of handling multimillion-dollar contributions—are often better equipped than celebrities or newly created organizations to implement large-scale programs, maintain transparency, and provide thorough impact reporting. 

      2. Scalability and reach 

      Identify nonprofits that do impactful work and have the potential to scale up but lack capacity and money to do it. Funding organizations already embedded in communities and health care ecosystems ensures that resources can be quickly deployed where they are most needed. Also fund intermediary, capacity-building nonprofits that supercharge the impact, infrastructure, and stability of other nonprofits. They support the success of philanthropic investments. 

      3. Collaborative approach  

      Support nonprofits that foster collaboration across sectors, recognizing that addressing complex public health issues requires multidisciplinary approaches to create lasting change.  

      Mega gifts intended to solve society’s most challenging problems would be deployed most effectively by nonprofits that are in authentic relationships with communities and will be good stewards of resources. Meanwhile, health nonprofits can boost visibility and attract megadonors through a combination of strategic communication and relationship building. Together, they can ensure that all people have fair opportunities to achieve their best possible health. 

      Photo credit: shironosov via Getty Images

      About the authors

      Natale Burke 2024

      Natalie S. Burke

      she/her/hers

      President and CEO of CommonHealth ACTION

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