A giving circle is a group of people that pools money and other resources and decides jointly how to support nonprofits that address important societal needs. Donors who join giving circles give more to charity, give it more strategically and become more engaged in their communities.
An estimated 800 giving circles donating millions of dollars to charity are now active in the U.S. Much like an investment or book club, a giving circle is a fun way to engage people in a common purpose to gain understanding of pressing issues, learn about philanthropy, and give back to local or distant communities to address critical problems.
Starting a giving circle is easy and will take some planning. First, consider who to invite to an initial meeting and whether the circle will consist of people like the organizers in age, gender, religion and other characteristics, or will be a more diverse group. The size of the group is important. I recommend starting with no more than 10 people, although the group may choose to grow over time to increase its impact.
Once gathered, the circle will need to decide on its focus and mission. Will it support local nonprofits working on poverty, education, the arts, the environment, etc., or will it look to achieve its impact on a more global scale?
An important consideration is how much each person will be expected to donate to the circle and for how long. Most circles have a minimum two-year contribution requirement ranging from $15 to $1,000 a month for participation. At $50 a month, 10 people will generate $6,000 annually for charity! Even if there is a sliding scale based on income for participation, each member of the circle should have an equal vote in the choices made. Consider also whether volunteer time will be required for participation.
The group will need to determine where the circle’s funds will be housed. It may open a bank account, establish a donor advised fund at a local community foundation or with a brokerage firm, or ultimately establish its own charitable organization. A tax adviser should be consulted about the issues involved in joint giving.
A process for determining which charities will be funded needs to be established. Speakers working on community issues may be invited to help members understand the problems and find creative charitable solutions. Experts in nonprofit organizations like the Colorado Nonprofit Association (), community foundation leaders, or philanthropy experts may be invited to educate members about giving to and working with nonprofit organizations to solve community problems. Site visits to see the work of the charities being considered might also be appropriate.
An ongoing evaluation process should be used to determine the efficacy of the circle’s philanthropy and how it should be refined for the next year.
Finally, there should always be a social component to the giving circle so that members can get to know each other and develop a closer connection and sense of community. More information on giving circles is available at and . Younger donors will find Community Shares’ helpful.
To join an existing giving circle, choose from several in Colorado, including Social Venture Partners, a national network of giving circles with a common theme of engaged venture philanthropy to help local nonprofits expand capacity to achieve their missions. SVP Denver () and SVP Boulder County () have more than 50 members per group and give tens of thousands of dollars and hundreds of professional consulting hours annually to local charities. Both welcome new participants.
Bruce DeBoskey is a Denver-based philanthropic adviser. Reach him at bruce@deboskeygroup.com.
Nonprofit of the month
Colorado philanthropist and restaurateur Noel Cunningham is hosting A Dinner of Unconditional Love in Denver on Thursday to raise funds for the Joint Distribution Committee, an international aid group, to support and honor the work of Dr. Rick Hodes. Hodes has devoted his personal and professional life to working out of the Mother Teresa Orphanage serving Ethiopia’s poor and sick, treating cancer and heart-disease patients, and others suffering from scoliosis and tuberculosis of the spine.
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Bruce DeBoskey
