MacKenzie Scott’s record-setting $20 million donation to Santa Barbara City College is now facing scrutiny after questions emerged over how a portion of the funds was used.
According to Fortune, the gift, awarded in 2021, was the largest in the college’s 112-year history and was initially positioned as a major boost for student access during a period of declining enrollment across community colleges.
But in late January 2026, SBCC’s board of trustees disclosed that roughly $10.5 million of the donation had been spent without formal authorization from the foundation board, college leadership, or trustees.
The board confirmed it has launched an investigation and plans to address the issue publicly. “The board of trustees has initiated its own investigation… consistent with its commitment to sound governance and public trust,” the school said in a statement.
The funding in question supported the college’s Promise Program, which covers tuition, books, and supplies for about 1,800 local students each year. While the spending aligned with student support goals, the issue centers on process and oversight—not the program itself.
Bobbi Abram, CEO of the SBCC Foundation, said the situation stemmed from internal breakdowns rather than misuse. “Using some of the Scott gift funds for the Promise was not a ‘misuse,’” Abram said, adding that it was consistent with the foundation’s mission.
She described the issue as an “accounting process failure” and a “lack of transparency,” noting that corrections have since been made.
The situation has brought renewed attention to Scott’s approach to giving. Known for providing large, unrestricted donations, Scott does not require recipients to submit applications or follow strict reporting guidelines after funds are distributed.
That model—often referred to as trust-based philanthropy—has been widely adopted by organizations that say it allows them to act quickly and allocate resources based on real-time needs.
Outside Santa Barbara City College, Scott’s donations have largely been received without controversy and integrated into long-term institutional planning across the country.
In 2025 alone, Scott reported $7.1 billion in total giving, part of a broader $26.3 billion she has donated since 2019. A major portion of that funding has gone to higher education, particularly historically Black colleges and universities (HBCUs). In 2025, she directed more than $740 million to HBCUs, bringing total contributions since 2020 to more than $1.2 billion.
That funding includes $80 million to Howard University, $63 million each to Prairie View A&M University and North Carolina A&T State University, $50 million to Bowie State University, Norfolk State University, and Winston-Salem State University, and $38 million to Xavier University of Louisiana and Spelman College. Additional gifts include $19 million to Dillard University and $25 million to Lincoln University.
She also contributed $70 million to the United Negro College Fund to support a shared endowment model.
Scott’s giving has extended beyond HBCUs to tribal colleges and community colleges as well. Institutions such as Bay Mills Community College, Nebraska Indian Community College, and Little Priest Tribal College have each confirmed multi-million-dollar donations.
Northern Oklahoma College received $17 million, while rural colleges like Bladen Community College and Robeson Community College secured $12 million and $24 million gifts, respectively.