Giving Circle FAQs

What is a giving circle?
Is a giving circle right for you?
How many giving circles are there?
Do giving circles appeal mainly to women?
Where can I find a giving circle?
Where do giving circles keep their money?
What kinds of organizations do giving circles support?
How much money does each donor contribute?
Do giving circles encourage members to volunteer?
Do giving circle members make donations outside of the circle?
What does it take to start a giving circle?
How do I tell if a group is a giving circle?

What is a giving circle?

A giving circle is a group of people who combine their money and decide where to donate it. Giving circles vary in size and structure. All giving circles offer members a chance to learn more about giving and community issues. To learn more about giving circles, see our in-depth look at “What is a Giving Circle?”

Is a giving circle right for you?

Being a part of a giving circle is an active, team approach to philanthropy. Before joining a circle you should consider how much time you have to give time and the stage of the giving circle. Being a part of the start-up process will require more time from members. For more issues that might impact your decision, read our giving circle decision-making guide.    

How many giving circles are there in the United States?

There are hundreds of giving circles in the US. In a scan conducted in 2007, our organization identified over 400 circles. We think there are four or five times more giving circles out there. 

Do giving circles appeal mainly to women?

No – giving circles are diverse. In our 2007 scan, we found that forty-seven percent of giving circles were mixed-gender or all-male.

Where can I find a giving circle?

There are giving circles throughout the US, from Los Angeles, California to Portland, Maine. Although they tend to be located in urban communities, there are giving circles in small towns and rural areas too. 

Where do giving circles keep their money?

As members contribute, the giving circle needs to decide where to store the money until it is ready to make grants. For smaller circles, there may not be a need to select a host. Circle members may simply write a check to the selected organization. However, most giving circles look for a financial host, such as a community or public foundation who can hold the circle’s money. Hosts can often provide tax benefits to donors. For more information on selecting a host, read "Options for Where to House Your Money." To understand the relationship between giving circles and hosts, please read our Resources for Institutional Hosts. 

What kinds of organizations do giving circles support?

Giving circles support many different issues and organizations. These issues vary slightly from that of foundations. The most popular topics that giving circles fund are youth development, women and girls, human services and mental health/crisis intervention. Foundation priorities are human services, education, arts and culture, health and public affairs (Foundation Center, December 2006).
 
How much money does each donor contribute?

Each giving circle can choose a financial level that is right for its members. Some giving circles set a lower giving level ($150-$500 per year). Other giving circles choose to set a higher giving level ($5,000-$20,000 per year). Many giving circles ask that each member give the same amount. Some giving circles set tiered levels of giving or have a “give what you can” philosophy.
 
Do giving circles encourage their members to volunteer?

Our 2007 study found that circle members often give extra support to nonprofit organizations:

  • 65% of circle members volunteer;
  • 43% of circle members join Boards of grantee organizations; and
  • 35% of circle members provide additional fundraising support by encouraging their friends and colleagues to donate. 

Can giving circle members make donations outside of the circle?

Yes – giving circle members give additional money to nonprofits that they learn about through the circle. Also, close to 75% of giving circle members give additional money or in-kind support directly to the organizations that the circle decides to fund.

What does it take to start a giving circle?

You don’t need much to start a giving circle. It helps to start with a little motivation, commitment, and an interest in philanthropy. See the Giving Circle Starter Kit for basic steps and our “Resources for Starting and Maintaining a Giving Circle.”
 
I received information from a local nonprofit saying that I could be a member of the “President’s Gold Circle” if I donate $1,000. Is this a giving circle?

Many nonprofit organizations use a “circle” model of fundraising. Donors who contribute at an established level may get special services, recognition, or learning opportunities. These major donors help organizations by contributing much-needed funds. However, in this type of circle, organizations ask for money but usually do not let donors make decisions. We do not consider this arrangement to be a giving circle.

Do you have other questions?

Please contact Forum member Buffy Beaudoin-Schwartz at the Assocation of Baltimore Area Grantmakers.