Giving Circles

Giving Circles are a form of philanthropy consisting of groups of individuals who pool their funds and other resources to donate to their communities and seek to increase their awareness and engagement in the process of giving. Through this process, they seek to impact their own communities or larger areas - including to have global impacts. The circles can serve as a form of shared, or collective, giving in the context of community economic development or other social ventures.

Members of giving circles donate their own money or time to a pooled fund, decide together where to give these away, and often have some sort of social or educational interaction associated with the giving. Many circles, in addition to donating their money, also contribute their time and skills to supporting local causes. Donations may range from spare change to thousands of dollars each year.

Giving circles as they currently manifest themselves are a new trend, but they are built on old traditions dating back hundreds of years to mutual aid societies and other forms of giving for the community. Several years ago, giving circles were predominantly composed of women. Women continue to make up the majority of today's giving circles - but today the make up of circles are more diverse in race, age and gender.

The structure of the circles can be informal or formal. On the informal side, circles may vote and choose an organization to support and each member writes an individual check. Formal circles may have their money housed at a local community foundation and have staff that support the work of the circle. Giving circles can range in size from a handful of members to several hundred.

Individual donors who join or form a giving circle typically seek to build community within their circle through social events, in addition to the economic impacts of the groups.

In a 2007 study, the Forum of Regional Associations of Grantmakers' New Ventures in Philanthropy initiative identified approximately 400 Giving Circles in the U.S., more than double the number from two years earlier. A survey of 160 circles found that they leveraged $13 million in 2006 alone, and nearly $100 million to date. Nearly 12,000 people participated in the 160 giving circles surveyed; nearly half of circles now have male participants, and the popularity of giving circles is also growing among racial, ethnic and tribal communities as well as in the gay and lesbian community.

Another study conducted in 2005 by Angela M. Eikenberry, an assistant professor at the University of Nebraska at Omaha, found that giving circles generally bring both long-time and new philanthropists to organized philanthropy. For both groups, participation seems to increase levels of giving while bringing “new money” to the nonprofit sector; especially to small and locally based organizations. Members also seem to learn about and give to organizations and individuals, and in interest areas, they most likely would not have given to otherwise. In addition, members are more thoughtful, focused and strategic in their personal giving because of educational experiences in the giving circle. These findings are based on 30 interviews with giving circle participants, staff, and philanthropic professionals working with giving circles, document analysis, and secondary data.

Examples of giving circles include the Zawadi giving circle in New Orleans, where 12 African-American members have collectively donated $24,000 over the past two years. Their money has provided intensive math tutoring for students at a local school, along with other projects. The four members of the Queer Youth Fund, based in Los Angeles, Calif., each give more than $100,000 per year to make substantial contributions to organizations that help improve the quality of life for lesbian, gay, bisexual and transgender youth.

The African American Giving Circle of the Washington Area Women's Foundation has awarded over $100,000 in grants to community based organizations in Washington, D.C. serving African American women and girls.

Dining for Women (diningforwomen.org) is a giving circle headquartered in Greenville, South Carolina. DFW has over 140 chapters and raises approximately $20,000 monthly (and raising) for international charities located in third world countries. These are charities that support women and girls living in extreme poverty.

The Kew Giving Circle in Kew, south west London, which started meeting in January 1999 and is still active, is the first recorded giving circle in the UK.

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