Giving circles have become a recognized philanthropic force as their numbers have rapidly increased over the past decade. A giving circle is a group of people (friends or like-minded individuals) of all economic backgrounds who pool their money and resources and decide together where to donate.
The University of Nebraska at Omaha, the Forum of Regional Associations of Grantmakers, and the Center on Philanthropy at Indiana University, released a new study on the impact of giving circles. For more information about the study, visit: www.givingforum.org/givingcircles.
Highlights from the report:
• Giving circle members say they give more and give in more strategic ways than other donors.
• Giving circle members are highly engaged in their communities. Participation increases members’ knowledge about philanthropy, nonprofits, and community needs and increases community volunteering and involvement in changing government policies.
• Giving circle members say they give to a greater number of organizations, compared to other donors.
• Giving circle members are more likely than other donors to give to areas less often funded by organized philanthropy, such as to organizations serving women and girls, ethnic and minority groups, and for arts, culture and ethnic awareness.
• Giving circles can have a greater impact in these difficult economic times because members pool their donations and are able to make larger grants to nonprofits then they could have individually, and they are providing creative opportunities for new ways to give.
What does this mean for you and your organization?
Three ideas that came to us:
1. If you are representing a smaller organization serving the populations noted above, you should ask the giving circles in you community how you approach them for support. Ask to make a presentation at one of their future meetings about a unique aspect of your organization.
2. If you are representing a larger organization, perhaps you should consider joining a giving circle in your community to bring your expertise into the giving circle’s conversations and to better understand how the community is thinking about philanthropy.
3. And finally, perhaps your organization should consider forming its own giving circle and allow members to target their philanthropy to projects within your organization. Seek an annual membership fee, just like the giving circles do, and in addition to funds raised, reap the benefits of giving circles noted above for your organization.