Giving Circles
Encyclopedia
Giving Circles are a form of philanthropy
where groups of individuals donate their own money or time to a pooled fund, decide together where to give these away to charity
or community projects and, in doing so, seek to increase their awareness of and engagement in the issues covered by the charity or community project.
Many circles, in addition to donating their money, also contribute their time and skills to supporting local causes.
and other forms of giving for the community. Several years ago, giving circles were predominantly composed of women. Giving circles are now more diverse in race, age and gender, although women continue to make up the majority of members.
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 United States
, more than double the number from two years earlier.
A survey of 160 circles published in 2008 found that they had leveraged nearly $100 million, $13 million of this in 2006 alone. Nearly 12,000 people took part 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 areas of interest, 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.
members collectively donated $24,000 over a two year period. Their money has provided intensive math tutoring for students at a local school, along with other projects. The Queer Youth Fund, established in 2002 and based in Los Angeles, California
, has invested more than $3 million in grants to small youth-led organizations in the United States and Canada that promote equality and justice for lesbian, gay, transgender, queer and questioning (LGBTQQ
) youth.
Founded in 2004, The African American Giving Circle of the Washington Area Women's Foundation
has awarded over $120,000 in grants to community based organizations in Washington, D.C.
serving African American women and girls.
Dining for Women (DFW) is a giving circle headquartered in Greenville, South Carolina
with chapters in other parts of the United States, which raises monthly for international charities that support women and girls facing extreme challenges in developing countries
.
, south west London
, which started meeting in January 1999 and is still active, is the first recorded giving circle in the United Kingdom
.
The Funding Network is the largest known giving circle in the UK. It is a charity that runs Dragons' Den
-style events to bring together potential donors and charities to fund positive social change.
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
where groups of individuals donate their own money or time to a pooled fund, decide together where to give these away to charity
Charitable organization
A charitable organization is a type of non-profit organization . It differs from other types of NPOs in that it centers on philanthropic goals A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that it centers on philanthropic goals A...
or community projects and, in doing so, seek to increase their awareness of and engagement in the issues covered by the charity or community project.
Many circles, in addition to donating their money, also contribute their time and skills to supporting local causes.
Structure and function
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 societiesBenefit society
A benefit society or mutual aid society is an organization or voluntary association formed to provide mutual aid, benefit or insurance for relief from sundry difficulties...
and other forms of giving for the community. Several years ago, giving circles were predominantly composed of women. Giving circles are now more diverse in race, age and gender, although women continue to make up the majority of members.
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
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
. 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
Community building
Community building is a field of practices directed toward the creation or enhancement of community among individuals within a regional area or with a common interest...
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 United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, more than double the number from two years earlier.
A survey of 160 circles published in 2008 found that they had leveraged nearly $100 million, $13 million of this in 2006 alone. Nearly 12,000 people took part 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
University of Nebraska at Omaha
The University of Nebraska at Omaha is a four-year state university located in Omaha, Nebraska, USA. Founded in 1908 as Omaha University, the institution became the public Municipal University of Omaha in 1931. It assumed its current name in 1968 following a merger into the University...
, 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 areas of interest, 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.
United States
Examples of giving circles include the Zawadi giving circle in New Orleans, where 12 African AmericanAfrican American
African Americans are citizens or residents of the United States who have at least partial ancestry from any of the native populations of Sub-Saharan Africa and are the direct descendants of enslaved Africans within the boundaries of the present United States...
members collectively donated $24,000 over a two year period. Their money has provided intensive math tutoring for students at a local school, along with other projects. The Queer Youth Fund, established in 2002 and based in Los Angeles, California
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
, has invested more than $3 million in grants to small youth-led organizations in the United States and Canada that promote equality and justice for lesbian, gay, transgender, queer and questioning (LGBTQQ
LGBT
LGBT is an initialism that collectively refers to "lesbian, gay, bisexual, and transgender" people. In use since the 1990s, the term "LGBT" is an adaptation of the initialism "LGB", which itself started replacing the phrase "gay community" beginning in the mid-to-late 1980s, which many within the...
) youth.
Founded in 2004, The African American Giving Circle of the Washington Area Women's Foundation
Washington Area Women's Foundation
Washington Area Women’s Foundation is a nonprofit organization located in Washington, DC that brings together women who act as donors and activists...
has awarded over $120,000 in grants to community based organizations in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
serving African American women and girls.
Dining for Women (DFW) is a giving circle headquartered in Greenville, South Carolina
Greenville, South Carolina
-Law and government:The city of Greenville adopted the Council-Manager form of municipal government in 1976.-History:The area was part of the Cherokee Nation's protected grounds after the Treaty of 1763, which ended the French and Indian War. No White man was allowed to enter, though some families...
with chapters in other parts of the United States, which raises monthly for international charities that support women and girls facing extreme challenges in developing countries
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
.
United Kingdom
The Kew Giving Circle in KewKew
Kew is a place in the London Borough of Richmond upon Thames in South West London. Kew is best known for being the location of the Royal Botanic Gardens, now a World Heritage Site, which includes Kew Palace...
, south west London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, which started meeting in January 1999 and is still active, is the first recorded giving circle in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
The Funding Network is the largest known giving circle in the UK. It is a charity that runs Dragons' Den
Dragons' Den
Dragons' Den is a series of reality television programmes featuring entrepreneurs pitching their business ideas in order to secure investment finance from a panel of venture capitalists. The show originated in Japan as "Manē no Tora"...
-style events to bring together potential donors and charities to fund positive social change.
External links
- Giving Circles Network: website about Giving Circles
- Ten basic steps to starting a giving circle
- Citizen Effect Online platform that enables people to easily create and participate in a giving circle
- Dining for Women website
- http://www.philanthropy.iupui.edu/research/docs/2009GivingCircles_FullReport.pdf "The Impact of Giving Together", 2009 report by Forum of Regional Associations of Grantmakers, The Center on Philanthropy at Indiana University, and The University of Nebraska at Omaha
- Funding Network website