When MacKenzie Scott began giving away billions of her wealth without complex structures or publicity, it contradicted much of the traditional planning in philanthropy with trusts, structures, and multi-year carefully coordinated giving. Yet beneath the simplicity lay deep alignment between purpose and action and, perhaps a return to more ancient forms of giving. Most modern philanthropy, especially in the advisory sector, is focused on vehicles and tax-efficiency. Donor-advised funds, charitable trusts, and private foundations are valuable tools but they often overshadow the why behind wealth. When planning becomes primarily about control and optimization, purpose risks being lost to process.
Wealth As Philanthropy In A Global Context
In many ancient traditions, wealth and philanthropy have been synonymous. Hindu philosophy, for example, recognizes artha (prosperity) as one of the four aims of life which is held in balance with dharma (duty), kāma (fulfillment), and moksha (liberation). Wealth is not an end but a resource in service of ethical purpose. These values can align with Western models of stewardship from a different perspective. Traditional western planning often focuses on governance and structure while Eastern philosophy focuses on humility, balance, and purpose. Together they suggest that wealth should be structured to serve purpose, not ownership and that prosperity becomes meaningful only when it circulates with intent.
When Purpose In Philanthropy Demands Structure
When philanthropic planning focuses on purpose, tools such as charitable remainder and lead trusts (CRT and CLT), Qualified Charitable Distributions (QCD), donor-advised funds (DAF), or private foundations are not merely vehicles for tax savings. They become instruments for alignment, connecting wealth to values, and values to long-term impact. The best-designed plan is one where every dime is allocated intentionally.
Adapting Planning In Global Philanthropy
For example, one global philanthropist found that his greatest impact came not from large institutional gifts, but from supporting grassroots education, health, and entrepreneurship efforts across Asia and Africa, where his friends and former colleagues were already involved. Because many of these groups were not formal charities, his advisors had to design a cross-border philanthropic structure capable of issuing qualifying grants under U.S. 501(c)(3) requirements while meeting foreign charity law and regulation requirements.
In this case, structure aligned with purpose, while strategy became the tool to implement it. Organizations such as the Charities Aid Foundation (CAF) can bridge this gap by establishing donor-advised funds tailored for foreign charitable purposes, enabling vetted and compliant support for smaller initiatives abroad. Additionally, when the purpose is uniquely defined, as it was for this philanthropist, innovation becomes essential. Designing a structure that honors intent across jurisdictions requires creative design and technical precision. It transforms wealth from passive accumulation into a living system of alignment.
Five Questions Every Wealth Holder Should Ask
1. Purpose: What do I want my wealth to achieve in the world, beyond accumulation?
2. Structure: Does my current structure enable that purpose or merely preserve capital?
3. Strategy: What deliberate actions, governance models, or partnerships can make that purpose real?
4. Innovation: Where do conventional tools fall short, and what adaptive or cross-cultural solutions could bridge the gap?
5. Legacy: If my active involvement ended today, would my structure and strategy continue to reflect my values?
Ultimately, the question for any family seeking to leave a legacy or create impact is this: Is wealth meant to be concentrated within the family or used for broader benefit? The answer shapes more than structure; it defines legacy itself. As both Eastern and Western traditions remind us, wealth is fleeting unless it serves something that lasts. When purpose leads, strategy builds the bridge, and innovation sustains it. The alignment with philanthropy, of structure intertwined with meaning, and humanity, turns fortune into legacy.