In the evolving landscape of philanthropy, a growing trend is reshaping how people engage with charitable giving: the giving circle. This grassroots approach to philanthropy is gaining momentum, fostering community, collaboration, and meaningful giving. But what exactly are giving circles, and why are they becoming a crucial part of the philanthropic sector?
What is a Giving Circle?
At its core, a giving circle is a form of collective giving where groups of individuals come together to pool their resources, collectively decide where to donate those funds, and sometimes engage directly with the causes they support. These circles can range from small groups of friends to larger, more structured networks. Members typically contribute an equal amount of money and have an equal say in decision-making.
Philanthropy for Everyone
One of the most significant roles of giving circles is in democratizing philanthropy. They open doors for individuals who may not view themselves as traditional philanthropists due to their income level. By pooling resources, members can make more substantial donations than they could individually. This approach makes philanthropy more accessible and inclusive, allowing a broader range of people to engage in meaningful charitable activities.
Building Community
Giving circles are not just about pooling financial resources; they are also about building communities. They provide a platform for members to connect, discuss, and learn about social issues and nonprofit effectiveness. This collaborative environment fosters a deeper understanding of philanthropy and its impact. Members often find that participating in a giving circle enhances their knowledge of local and global issues, nonprofit management, and the tangible effects of strategic giving.
Focused and Meaningful Giving
With a collective approach, giving circles can focus their efforts and resources more strategically. By combining funds and deciding together, they can target specific issues or support particular organizations, often making a more substantial impact than individual giving. This targeted approach can be particularly effective in addressing local community needs, as many giving circles prioritize local organizations or projects.
Encouraging Long-Term Engagement
Members of giving circles are often more engaged in their philanthropy than passive donors. The interactive nature of these groups encourages long-term commitment to philanthropy and a sustained interest in social causes. Through regular meetings and discussions, members stay connected to their community and the impact of their collective giving.
Giving circles represent a shift towards more collaborative, inclusive, and impactful forms of philanthropy. They provide a space for learning, sharing, and community-building, all while making a tangible difference in the causes they support. As these circles continue to evolve, they will undoubtedly continue to influence the broader landscape of philanthropy in powerful ways.
Join a Giving Circle or Start One of Your Own!
Locating an existing giving circle in your area might be somewhat difficult. Although PhilanthropyTogether.org provides a global directory of giving circles, inclusion relies on the circle organizers to submit their information. Therefore, the absence of a giving circle listed in your area doesn't necessarily mean there isn't one. Since giving circles are fundamentally social groups, exploring social media and networking with friends and colleagues are effective ways to discover one nearby.
In the Bismarck-Mandan area, for instance, the BisMan Power of 100 organizes giving events every quarter. Teams of 1 to 4 individuals pledge to donate $100 each quarter to a chosen nonprofit, resulting in over $10,000 raised every quarter. These events not only facilitate donations but also provide members with insights into various charities and opportunities for further involvement.
If you're interested in starting a giving circle, it's quite straightforward. Begin by assembling a small group of friends or family. Decide on the frequency and amount of your donations, as well as the process for selecting a nonprofit to support. Once these details are determined, it's wise to document them and have all members agree to the set rules and guidelines by signing this document.
If each member makes their donation directly to the nonprofit, you will not need to incorporate as a nonprofit organization. If you prefer a more formal structure, you can visit with your local community foundation to see if they have a giving circle program or offer Donor-Advised funds.