Why Giving Circles Work

Collective giving, or a giving circle, creates a sense of belonging between the people raising money for your organization's mission and purpose. When people with shared values come together to make a change, their efforts and collective gifts power your organization's ability to make a difference. Particularly favored by women, giving circles create a sub-community around your nonprofits. Women control or influence 85% of purchases in the United States and contribute to nonprofits more than men, so it's unsurprising that they constitute nearly 70% of circle members.

They most likely support local community issues that mirror national trends with higher activity in human services, women's issues, and education.

But giving circles aren't only groups of women – they can be small or large, work locally or globally, make donations of any size, and have participants of all backgrounds. The de facto membership of a giving circle creates appeal to many folks who enjoy being part of something greater than themselves. A giving circle also provides an element of collective influence for participants since each giving cycle allows the members to choose a new project to fund.

Benefits of a Giving Circle for Participants

Giving circles are becoming more popular because they work. They provide benefits for both nonprofits and individuals who participate.

Key benefits for individuals:

• Community Building: Giving circles foster community among members with shared values and interests. Participants often develop meaningful relationships through their shared commitment to philanthropy.

• Increased Impact: Pooling resources allows giving circles to substantially impact charitable organizations more than individuals might achieve on their own. The collective contributions amplify the effect of each individual's donation.

• Learning and Education: Giving circles allow members to learn about philanthropy, nonprofit organizations, and social issues. Discussions, presentations, and site visits help members become more informed and effective philanthropists.

• Empowerment: Participating in a giving circle empowers individuals to directly impact the causes they care about. Members often feel a sense of ownership and accomplishment as they collectively decide where their contributions will go.

• Flexible Models: Giving circles come in various forms, allowing for flexibility in structure and focus. Whether based on shared interests, geography, or a specific cause, participants can choose a model that aligns with their preferences.

• Social Networking: Memberships provide opportunities for social networking among philanthropically-minded individuals. Beyond the charitable aspect, members often connect professionally and personally, expanding their social networks.

• Catalyst for Change: By supporting innovative solutions and initiatives, giving circles can catalyze positive change. Their collective resources can be directed toward projects needing help securing funding through traditional channels.

• Long-Term Commitment: Joining a giving circle encourages a long-term commitment to philanthropy. The regular meetings, discussions, and shared experiences foster a sustained interest in and dedication to charitable giving.

• Philanthropic Education for Future Generations: Giving circles often involve educational components, exposing younger generations to the principles of philanthropy. This can instill a sense of social responsibility and a commitment to giving back in future generations.

Participating in or establishing a giving circle can offer a rich and rewarding philanthropic experience, combining the joy of giving with the benefits of shared learning, community building, and amplified impact.

Credit: Article edited for size. What is a Giving Circle and Why Should Nonprofits Care? - GiveWP