Life

MacKenzie Scott’s $7M Gift Could Grow Into Billions for Red Lake Nation College

How a $7M donation to a tribal college is being turned into a long-term endowment with strict rules and billion-dollar potential.

MacKenzie Scott Gifts $7M 'Transformational' Grant to Red Lake Nation College
Photo by Michael Kovac/Getty Images for for J/P HRO Gala

MacKenzie Scott has added another school to her growing list of higher-education recipients, this time with a $7 million donation to Red Lake Nation College in Minnesota.

According to the Minnesota Star-Tribune, the gift, which school leaders are calling transformational, is the largest in the 25-year history of the tribal college and is already being used to establish a permanent endowment designed to support future generations of students.

Red Lake Nation College announced the gift on April 9, though officials said Scott’s organization, Yield Giving, awarded the funding last year.

Rather than spending the money immediately on programs or facilities, the college’s leadership chose to place the entire amount in an endowment that could continue to grow over time.

The school said the decision was shaped by Ojibwe teachings that encourage leaders to think seven generations ahead. In announcing the plan, the college said its leadership wanted the donation to create “the biggest permanent impact” possible for students and the Red Lake community.

College officials estimate the endowment could eventually reach $225 million within 35 years if investment targets are met. Over a longer timeline, the school believes the fund could grow into the billions.

To protect the investment, Red Lake Nation College’s board approved strict rules limiting withdrawals during the early years and hired Sovereign Investment Advisors to manage the fund.

“This permanent fund will be treated like a 401(k) fund for the college,” board chair Delwyn Holthusen Jr. said in a statement. He added that any future withdrawals would have to be repaid with interest so that the fund can continue to expand.

The donation arrives at a critical moment for the school. Red Lake Nation College operates campuses in both northern Minnesota and downtown Minneapolis and relies heavily on private support.

According to its most recent IRS filing, about one-quarter of the college’s funding comes from private donations. The school reported $12.8 million in total revenue in 2024, making Scott’s $7 million gift especially significant.

“This is fantastic for us,” board member Sharon Norris said. “Natives are usually the last to get funded and first to get cut.”

The Red Lake donation fits into a broader pattern of giving from Scott, who has increasingly directed major gifts toward underserved colleges and universities. Since 2020, Scott has donated more than $26 billion to organizations across the country, including schools, nonprofits, and community groups. Higher education has remained one of the largest focuses of that effort.

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