What is a Host?

A giving circle host is an organization which holds the circle’s money. Examples of host organizations are a community foundation, public foundation, nonprofit organization, or regional association of grantmakers. The host may also provide accounting and other administrative services, staffing, and advice to the circle. In addition, host organizations provide giving circles with the legal status of a nonprofit. This allows circle members to make tax deductible donations.

When a giving circle is sponsored by a philanthropic institution, such as a community foundation, the circle is generally set up as a donor-advised fund. With a donor-advised fund, the donor (in this case the giving circle) makes recommendations to the host about who will receive grants from the fund.

A host organization carries out specific tasks for a giving circle. Those responsibilities vary from host to host. Most hosts take care of grant administration and financial management, and generally charge a small fee for these services. Some hosts offer additional services to giving circles, such as arranging regular circle meetings, assisting with the design of grantmaking guidelines, coordinating correspondence with grantees, and administering payroll for staff at the host organization who work with the giving circle. 

Some hosts provide educational programs for giving circle members. These sessions are usually on a variety of topics, such as how nonprofits work, the grantmaking process, and specific community issues of interest to the circle.