Get Together for Greater Good: How to Start a Giving Circle

Some of us get discouraged when we think about how little our modest $25 or $50 contributions can really do for organizations with serious problems to solve and big budgets to balance. We ask ourselves, “Does this drop in the bucket really make a difference?” But what if it wasn’t just your $25, but the $25 of all of your neighbors, friends, and family pulled together? That would create a much bigger splash.

You don’t have to go door-to-door like a Girl Scout selling cookies to make that kind of impact—join a giving circle instead.

A giving circle is the philanthropic version of a stock investing club: A group of people with similar charitable goals who pool their money together on a regular basis so they can make a large-scale charitable contribution.

According to the Forum of Regional Association of Grantmakers in Washington, D.C., giving circles are growing. In 2004, the circles surveyed by the Forum raised $44 million. In 2006, surveyed circles raised $88 million. One of the most exciting things about giving circles, says Darryl K. Lester, of North Carolina’s HindSight Consulting, is that they enable people who may not have traditionally been active in philanthropic leadership to get involved. Lester has helped launch several African-American giving circles across the country. And many giving circles have a female-friendly focus: According to Forum research, 53 percent of all giving circles are women-only groups.

“Giving circles allow people to utilize philanthropy as a tool to address problems. You get a cross-section of people coming to the same table with their time, talent, and money,” Lester says.

Starting a giving circle requires a few rules and regulations, but the process is far from complicated.

First, find a group of people to participate. Some groups can have more than 150 members, but Lester suggests limiting it to 20 or 25 in the beginning. The bigger the group, the more subcommittees and formal structure you’ll need. Then, determine your common mission. Circles can be organized by cause, geography, or both. The New York-based Black Women for Black Girls is comprised of African-American women. Dining for Women in Greenville, S.C. donates to organizations that aid women in undeveloped countries. Funding Arts Network benefits arts organizations in South Florida.

Next, determine how to structure the group. Will everyone contribute the same amount in specific intervals, or will those who donate more have a larger influence when it comes time to make grants? Will you establish a donor-advised fund to manage the money until you make your grants? The giving circle can be as casual or formal as you choose. Some groups go all the way and create a 501(c)3 with detailed bylaws. Others simply meet at a member’s house for a potluck, and chip in whatever they would have spent on dinner out.

One of the most rewarding parts of the giving circle process is deciding who will receive the fruits of your collective labor, says Buffy Beaudoin-Schwartz, who is both director of communications at the Association of Baltimore Area Grantmakers and chair of the Women’s Giving Circle of Howard County. That process also raises questions. You should decide: Will prospective grantees make presentations to your group or submit written proposals? Will you make one larger grant annually, or several smaller donations? Do you want the group to report back to you on their progress? You’ll also need to decide whether committees will divide up these tasks, or if the entire giving circle is involved in the process.

Whichever path your circle takes, you’re likely to see its benefits come around, Lester says. “People don’t necessarily get excited about donating to United Way at work. But giving circles serve as a tool to educate people about what is going on in their communities.”

For More Information

To learn more, and to find existing giving circles near you, visit:
www.givingforum.org/givingcircles
www.minnesotagiving.org/options/circlesteps.htm
www.givingcircleconnector.org

Photo: The members of Dining for Women, a giving circle in Greenville, South Carolina.