Report: Giving Circles Are Here to Stay

Five years ago, giving circles were under the radar. Two years ago, they were a trend just beginning to grow. Now a new report finds that groups of people getting together and giving together are an established philanthropic force that has raised $100 million to support diverse charitable causes.

Dining for Women Giving CircleGiving circles come in many different forms, but usually involve a group of friends who pool their charitable donations and decide together how to use the money to benefit the causes they care most about.

“There’s never been a better time to start or join a giving circle because it multiplies the impact of your charitable donations,” said Daria Teutonico, director of the New Ventures in Philanthropy Initiative at the Forum of Regional Associations of Grantmakers. “With the same amount of money you’d use to write a check to a charity, you get to make more of a difference, spend more time with friends, and learn more about what your community needs.”

The Forum’s report, "More Giving Together: The Growth and Impact of Giving Circles and Shared Giving," finds that the number of giving circles in existence has more than doubled in the last two years. There are now at least 400 giving circles nationwide – at least one circle in nearly every state. To examine the growth of giving circles, the Forum surveyed a sampling of 160 circles across the country. Findings include:

  • Giving circles give a lot. In 2006 alone, giving circles surveyed donated $13 million for community needs.
  • Giving circle members number in the tens of thousands. Nearly 12,000 people participate in the 160 giving circles surveyed by the Forum.
  • Giving circles are diversifying. While once considered a women’s philanthropy phenomenon, nearly half of circles now have male members. The popularity of giving circles is also growing among people of color and in the gay and lesbian community.
  • Giving circles have staying power. Nearly a third of circles surveyed have been through more than five rounds of grantmaking.

Giving circles often open members’ eyes to community needs and other opportunities for giving. “This endeavor has transformed many of our members in very profound ways. They take more responsibility for others and their community,” said Ericka Carter, a member of the San Fernando Valley Giving Circle.

The giving circles surveyed by the Forum count as few as four members or as many as several hundred, and donations range from spare change to thousands of dollars. They showcase the diversity and flexibility of giving circles.

  • Gather and Give is a giving circle in Washington, D.C., formed by a group of 17 young professionals in their 20s who wanted to have more of a say and be more strategic about how their charitable donations are used. They have raised nearly $2,000 and plan to make their first round of grants this year to organizations focused on nutrition and fighting hunger.
  • Twenty moms in Key Biscayne, Fla.—many Latina—founded the Smart Women with Spare Change giving circle to increase their members’ knowledge and confidence about money and finance while also investing in organizations that help women and girls. By contributing their spare change each month, the members have raised nearly $5,000.
  • The Zawadi giiving circle in New Orleans has 12 African American members who have collectively donated $24,000 over the past two years. Their money has provided intensive math tutoring for students at a local school as well as funding for a savings and financial education program for low-income New Orleans residents.
  • The four lesbian, gay, bisexual or transgender members of the Queer Youth Fund, based in Los Angeles, Calif., each give more than $100,000 per year to make substantial contributions to organizations that help improve the quality of life for lesbian, gay, bisexual or transgender youth.

To help prospective giving circle members, community organizations and individual foundations learn more about how to start or join a giving circle, the Forum has created an online Giving Circle Knowledge Center. The site includes “how to” resources about the nuts and bolts of starting a giving circle and profiles of circles across the nation.