 Neighbors have been coming together in times of crisis throughout history. In fact, America was built on individual members of society combining their time, talents, and money to make life better for others in their communities. And while the concept of group philanthropy is not new, there is a new philanthropic trend that is changing the way people give in our country. This trend is donating via giving circles — a grassroots form of giving that’s showing there’s more than just safety in numbers.
What is a Giving Circle?
Sometimes described as a social investment club, a giving circle is a group of donors — often neighbors, friends, families, and acquaintances — who form around a particular interest, pool their charitable dollars, and decide as a group what nonprofits to support.
While membership appeals to men and women, the largest percentage of those involved in group giving is women. Often low-to middle-income individuals, members of circles are people who want their limited donations to have a greater impact on their favorite causes. Often, these people wish to extend their level of involvement in the community past simple volunteerism and individually responding to solicitation from nonprofits. Giving as a group allows individuals to focus on ways that they can band together to make a greater impact.
According
to www.givingforum.org,
a Web site launched by the Forum of Regional Associations
of Grantmakers based in Washington DC., circles usually begin
with a small group whose members share the desire to learn
more about philanthropy, leverage the impact of their contributions,
connect with the causes they care about, and participate in
a group of people with similar interests and values.
Varying in size, structure, and focus, circles can range from very informal — a group of friends who meet in each other’s homes — to very formal groups with hundreds of members and a governing board. Members meet regularly to establish priorities, evaluate proposals, and approve grants.
How does it work?
Members often share a common interest in social causes or
interests. When joining a giving circle, donors can commit
to participation for several years at an established dollar
level, and together, members combine their resources. Annual
contributions are generally consistent across the group, with
members giving anywhere from $100 to $25,000 a year. According
to “When Givers Get Together,” a recent BusinessWeek
article authored by Jessi Hempel, the average gift is around
$2,500. Once members give their contribution, their “voice”
is equal to the other members who make up the circle.
These individuals, as a group, engage in the strategic decisions to determine which organizations benefit from their contributions. Just as the circles vary in size and complexity, so do their grant-making processes. The more complex examples can include a request for proposals, proposal reviews, site visits, and then decision deliberation — a process that can require debate at great length from members.
Larger circles look for financial hosts that can hold the money and provide tax benefits to the donors, while smaller groups may ask members to write individual checks to philanthropic cause or charity they are supporting.
What is the appeal to donors?
Being part of a giving circle offers a significant and extremely enriching philanthropic experience by giving individuals an opportunity to collaborate with others and practice philanthropic giving in a social environment. When a member’s contribution of $50, $100, or $1000 is matched by the contributions of the other members of the circle, it affords members the chance to make larger contributions to causes they care about. Along with their co-members, donors gain a greater knowledge of philanthropy, and the issues they are about.
There are also many opportunities for leadership activities, such as serving on various internal committees. Many giving circles offer members leadership opportunities, such as working on grant-making committees and evaluating the organizations to be considered for donations firsthand with site visits, interviews, and volunteer activities. Plus, many members find it energizing to be able to participate in the decision-making process. The only downfall is that the individual donors don’t have complete control over their gifts.
There are hundreds of giving circles within the United States, and that number grows every year, with new groups forming in both small towns and large cities. According to a report by New Ventures in Philanthropy, giving circles have produced more than $44 million for nonprofits since 2000. And these numbers are bound to increase as more groups form
How
can you benefit from giving circles?
The “giving circles trend” is certainly popular,
but while the number of circles steadily grows, the various
groups may be difficult to locate. How does your nonprofit
organization find and benefit from these groups of donors?
The Internet
is a good place to start. www.Givingforum.org
is a Web site maintained by New Ventures in Philanthropy,
an initiative of the Forum of Regional Associations of Grantmakers.
On its site, you will find a host of information about giving
circles, as well as a list of circles around the country.
Organizations to receive funding are selected through word of mouth, Internet research, local relevance, brand awareness, and through requests for proposals. This process is not unlike what you go through when requesting a grant. If you keep that in mind and adhere to the same advanced research, planning, and preparation as you would if you were requesting a grant, you’ll cover all the bases needed to be successful with your solicitation.
Clearly understand the circles’ guidelines, and before making an appeal, make sure the circle’s goals match your purposes. Pay attention to detail and specifications, use concise writing, and be persuasive in your request for funds. When writing your request, appeal to the strengths and values of your prospects — members of giving circles cherish the opportunity to build relationships with others like them.
Make sure to present your proposal in a complete format and include all the requested materials and attachments. When stating your needs and objectives, write clearly and concisely. Proper grammar, correct spelling, and professionalism is very important. Not surprisingly, a well-written proposal is a key factor in a giving circle’s decision-making process. |
