Giving Circles have become a popular form of philanthropy over the past several years. Are you knowledgeable about what they are and how you can participate in one? Below is an overview of Giving Circles and how to organize one.
What Are Giving Circles?
Groups of individuals donate their money to a pooled fund and collectively decide where to donate these resources. Sometimes Giving Circles donate to a specific charity, but they also support community projects or increase awareness and engagement in specific issues. Many Giving Circles also contribute their time and skills to support these causes. Giving Circles can range in size from a handful of people to several hundred.
The structure of Giving Circles can be formal or informal. When they are built around a more informal structure, members may gather and vote to choose a charity to support. Then each person writes a check to that organization.
In a formal circle, the money may be housed at a local community foundation which has staff that supports the work of the circle.
Benefits to Participating in a Giving Circle
While Giving Circles are a relatively new trend, it’s one that has already had a powerful impact. Studies have found that Giving Circles bring new and long-term donors to organized philanthropy. Both have brought “new money” to the non-profit sector, especially to small and local organizations.
Members tend to learn more about and give to organizations and causes that they otherwise may not have supported had they not been involved with a Giving Circle. They are apt to become more engaged in the community, volunteer more, and gain knowledge about the different areas in which their Giving Circles are involved. In addition, members are often more thoughtful, focused and strategic in their personal giving.
How to Participate in a Giving Circle
You can look for a Giving Circle that matches your interests or you can start your own.
If you’re looking to start your own Giving Circle, there are specific steps you can take to get started:
1. Set Goals and Structure
If you have specific people in mind that you would like to bring together, set up a time for your first meeting. Discuss what your Giving Circle will be and set goals and a structure. How often and where will you meet? Do you want to limit the number of participants? How will you fund the Giving Circle? What time commitment will be expected from your members and what is the anticipated size of their contributions?
2. Establish Mission and Commitment
Once you have regular meetings established and determine your mission. You will want consensus on common goals and objectives. Name your group and reach agreement on your Giving Circle’s operating structure and individual contribution amounts.
3. Determine Where the Collective Dollars will be Placed
When your members make a financial commitment, where is the money going to sit? Consider the Giving Circle’s needs, experience, and structure to determine whether you will place the money in a bank account, create a foundation, or write individual checks to the chosen nonprofit.
4. Establish a Focus Area
Your group may spend a long time discussing its focus. Be specific! If you’re going to focus on health issues, for example, what types of health issues? Age ranges? Where? Don’t be afraid to ask experts to weigh in as well.
5. Create Smaller Work Groups
See if different members of the group will volunteer for particular tasks. This will build personal commitment and spread the wide variety of work that may need to be done.
6. Develop a Process and Criteria for Funding
You may want to have a written application process for your selected charities to better evaluate what they need. Think about who will receive the funding from your Giving Circle, how you’ll review the applications, and any other pieces that may be important to your group when it comes to funding different needs.
7. Partners With the Giving Circle’s Recipient
Are you or members of the circle going to volunteer for the organization that you have funded? See if there are other areas of assistance you could offer, such as web development, finances, legal work, or mentoring.
8. Review Potential Recipients
Consider conducting site visits with potential grantees. This can allow you to ask questions, get clarification, and see the organization in action.
Set aside plenty of time for meetings to discuss potential recipients. Many circle members may feel strongly about funding different organizations and you will need time to reach agreement.
9. Make Grant Awards
Once your Giving Circle has made its funding decision, alert the recipient charities and let it know when it can expect the funds. You should also contact the organizations that will not receive your group’s funding.
10. Evaluate Your Giving Circle
Regularly evaluate the short and long-term goals of your Giving Circle. Pay attention to how your contributions have made a difference, and work to determine the impact your Giving Circle has had.
Giving Circles have become an important avenue for people to get involved and have an impact on a particular issue in which they are invested. Not only do Giving Circles increase the level of funding available to charitable causes, but they also provide a means for anyone who wishes to donate to become involved, regardless of age, race, gender or socioeconomic status.
Resources
Whether you want to start your own Giving Circle or find one that may fit your specific interests, there are many resources to help you get started.
- Philanthropy Together is a global initiative, co-created by hundreds of giving circle and collective giving network leaders, that helps new Giving Circles get started and existing Giving Circles thrive.
- Giving Circles Directory can help you locate a Giving Circle.
- Giving With Impact Podcast provides information on collective giving.
- WhatIsAGivingCircle.com provides information on this collective giving model and why people-centered philanthropy is so powerful.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.
