By Marie Sherlock, Next Avenue
“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.”
In this revered quote, anthropologist Margaret Mead neatly sums up the grassroots magic of giving circles: that a few like-minded souls working together can make a difference.
Giving circles can be as informal as a few friends pooling their money to donate to their favorite charity. Readers Reaching Out, an eight-member book club in Reno, Nevada, does just that, making collective gifts to nonprofits working on causes that they’ve learned about through their reading.
Alternatively, a giving circle can be an organized group of hundreds of individuals, banding together to make a difference in their community. The giving circle called Ninety-Nine Girlfriends, which has grown to include 334 “girlfriends,” makes sizable grants to nonprofits addressing needs in the Portland, Oregon, metropolitan area.
Philanthropy Together, a global collective giving initiative, estimates there are about 4,000 giving circles currently operating in the United States. And they are, indeed, making a difference. “Between 2017 and 2023, giving circles gave away nearly $3.1 billion,” says Ilyasah N. Shabazz, communications director for Philanthropy Together, adding that this amply demonstrates the power of those “small group[s] of thoughtful, committed, citizens.”
Giving Circles 101
What exactly is a giving circle? In a nutshell, “giving circles are groups of people with shared values and/or interests who pool donations and decide together where to allocate their money,” explains Shabazz.
Given such a broad definition, it is not surprising that giving circles vary greatly, both in size and focus.
Based on size alone, Shabazz believes that the Women’s Fund of Santa Barbara, with about 1,200 members, might be the country’s largest giving circle. On the other end of the spectrum, giving circles can be as small as two individuals “coming together for multiplied impact,” says Shabazz. Or, like Readers Reaching Out in Reno, your intimate, monthly book club.
The causes supported are equally wide-ranging, from health and education to community development and human rights, according to Shabazz.
Millions Given, Millions Helped
A comprehensive report on the impact of these cooperative efforts was published in 2023: In Abundance: An Analysis of the Thriving Landscape of Collective Giving in the U.S. That study revealed that nearly three-quarters of the groups earmark funds to stay in their home state, mostly within their immediate community. It also found that 92% of group members identified as women. Consequently, says Emily Rasmussen, founder and CEO of Grapevine, an online platform dedicated to supporting giving circles, “we often see women and girls as a key area of support.”
Many giving circles are part of a parent network, like the 100 Who Care Alliance (with over 700 chapters worldwide) and the Awesome Foundation, whose affiliates award monthly $1,000 “awesome grants.” Others are unconnected to a wider network, like Moving Mountains Giving Circle, a group of 49 women earmarking their collective funds to support social change in Boulder County, Colorado.
As noted, women dominate this charitable sector. For example, there are more than 350 100 Women Who Care chapters, part of the 100 Who Care Alliance. But there are also dozens of 100 Men Who Care groups as well as numerous Guys for Good efforts around the country. Some giving circles are geared toward specific careers or fields such as human resources professionals, artists, marketing, advertising and mental health professionals. Identity-based groups like the Asian Women Giving Circle are also common.
Many, like most of the 100 Who Care Alliance, meet quarterly; some convene only once a year and still others gather monthly. Most follow the typical giving circle emphasis of donating to nonprofits addressing needs in the local community.
One of the rare ones that focuses on making a difference globally is Together Women Rise. It began in 2003 when a group of women in Greenville, South Carolina, started gathering monthly for potlucks, pooling the money that they would have spent going out for a meal and then donating those funds to a nonprofit-of-the-month. From the beginning, the group focused on empowering women in high-poverty areas of the world (their first beneficiary was Women for Women International).
Since that modest start, Rise has raised more than $11 million to make a difference in the lives of five million women and girls in more than 70 countries. Today there are hundreds of Rise chapters across the United States and nearly all still host potlucks. “We know that the connection over food extends far beyond that one experience and unites members to the women and girls we’re supporting around the world,” explains Beverley Francis-Gibson, the nonprofit’s CEO.
Rasmussen sums up the landscape: “Giving Circles take all shapes and sizes and employ a variety of methods for when and how their members gather, how much money they pool per member and how they identify and select nonprofit recipients,” she concludes.
The Benefits of Giving Circles
How are these groups better than individual giving? The list of advantages includes connection, purpose, education, agency and more.
“Giving circles foster a sense of belonging, purpose and connection to a community,” says Shabazz. The In Abundance study found that 82% of members joined collective giving groups to establish relationships with like-minded folks.
Other benefits that significant majorities mentioned in that report include an increased sense of purpose in life, an enhanced ability to live one’s values, greater agency and civic engagement and a better understanding of the needs of their communities.
“Participants become more well-rounded, educated,” Philanthropy Together concluded, “and grow a broader context from which to make philanthropic decisions.”
Maximized Contributions
Individuals join giving circles to “amplify their impact for good,” says Rasmussen. The In Abundance report concluded that nearly 4,000 giving groups representing 370,000 individuals had collectively donated more than $3 billion since 2017.
‘Peer Accountability’
Giving circles deliver a bigger bang for your buck due to the positive peer pressure that comes with the territory. “I prefer the term peer accountability to peer pressure,” says Rasmussen. “Like many things we want to do that are good for us and others, we sometimes need accountability partners to help us see them through.”
Democracy — and Diversity — in Action
“Giving circles serve as an opportunity for practicing democracy. People with differing viewpoints have discussions together and eventually come to an agreement or consensus through a democratic process,” says Shabazz.
These groups are also more racially diverse than the general population, adding to the depth of discussions and to “smaller and more diverse organizations and causes getting funded,” according to Rasmussen. A win-win.
Jumpstarting Charitable Giving Generally
There has been a decline in the number of Americans donating to nonprofits for years, a shift that was exacerbated by the 2017 restructuring of the tax code. Giving circles are helping to alter that trajectory. “Amidst this, giving circles’ growth is a bright spot,” says Rasmussen. “It’s showing us how we can reverse this trend and engage more people — and a broader diversity of people — in giving.”
Becoming a Giving Circle Member
There are two basic ways to hop on the collective-giving bandwagon: Join an existing circle — or start your own.
Whichever approach you end up taking, it’s probably best to start by exploring the Global Giving Circle Directory, a joint effort of Philanthropy Together and Grapevine. With thousands of existing circles, odds are pretty high that you’ll find one that fits you.
If you decide to form your own group, Shabazz says that giving circles start with a conversation. “Find friends with a shared desire to make an impact in your community and share why you’re passionate about giving and why you want to do it together,” she advises.
Grapevine can provide help, with free tools and steps to get you started. “We will send you all the additional resources, tips and tricks, training, etcetera that you need,” says Rasmussen. Philanthropy Together offers plenty of assistance as well.
So, does membership in one of these compassionate communities make sense for you?
“It’s one of the most impactful things you can do as an everyday donor,” says Rasmussen. “I think everyone should be in a giving circle.”