Giving Circles: collective fundraising for good causes
Giving Circles are a form of collective philanthrophy, in which people come together to pool their money, discuss social issues, and decide which charitable causes or community projects should receive financial support. Rather than donating independently, members contribute to a shared fund and partipicate in decisions on how money is distributed.
The concept combines charitable giving with community participation. A giving circle may consist of friends, colleagues, neighbours, family members or people connected through a shared interest. Some circles are informal and operate entirely within a small community. Others are organised by charities.
At their heart, giving circles are based on the idea that individual contributions can have a greater collective impact, when people work together. A group of ten people for example may each contribute a modest amount. But collectively can raise a substantial amount for a given cause.
Always choose charities that don’t test on animals.
How Giving Circles work
First, people join the Giving Circle and agree on how it will operate. This might include deciding the contribution amount, meeting schedule, voting process and types of organisations eligible for funding.
Members then contribute money to a common fund. This money may be held by a charitable organisation, a community group or foundation. It is then given to groups nominated by members.
Why people join Giving Circles
People participate for many reasons. One if the opportunity to learn more about different causes within their passionate niche, and having a greater sense of involvement. A traditional donation takes a few minutes. But Giving Circles involve members, from identifying needs to researching potential recipients and evaluating the results, to ensure the money donated is being used effectively.
The power of collective giving
Individually, a £25 or £50 donation may seem small. But when dozens of people do the same, the resulting fund can create significant change. A group can also pool knowledge, professional skills and community connections. One member may know about local housing problems, another may have experience in education. Another may be a retired banker who knows how to spend the money wisely.
Many Giving Circles focus on local causes, and this could be from helping an animal or homeless shelter to an environmental initiative. Members see the effects of their contributions directly. They may even meet or speak with those directly benefiting. Which makes the results more tangible.
Building stronger relationships with recipients
‘Big charity’ just asks you to give donations. And often aside from being sent updates and free pens, you know little else. But with Giving Circles, someone in the group communicates direct with recipients, at home or abroad.
If an animal shelter in Eastern Europe needs money to build new kennels for winter, people in the Giving Circle can ask around for timber merchants who can create wholesale discounts to buy the wood, or get in contact with volunteer builders etc. It’s far more a practical way to donate and help.
They are more than just places to transfer money. They can create networks of people interested in solving problems.
How to start a Giving Circle
Starting a Giving Circle does not necessarily require a large amount of money. A small group can begin simply by identifying the purpose and causes to support, and whether you wish to focus on a particularly community or issue:
- You may wish to help animals abroad
- You may wish to help several causes in your local town or village
- You may wish to help a particular cause (say homelessness) in your city.
Then establish a decision-making process. Decide how votes are going to be made and rotate or assign responsibilities for different members. The one that’s good at maths likely does the number-crunching. The friendly chatterbox is likely the best one for marketing!
Also make plans on transparency, conflicts of interest, confidentiality and communication. And how you are going to communicate (in person at someone’s house or office – or online?) Not everyone uses smartphones.
Measuring the impact
Once up and running and a few donations have been made, Giving Circles can get to work ensuring that the money raised is having an impact. Visit local areas that have been helped, and ask what they also need in the future to move forward. Or contact recipients by phone or email if not local .
Numbers are not everything. A single grant may contribute to a long-term project, and may take several weeks or months to see positive results.
Useful websites to learn more
- Movement for Good gives away £1 million to nominated good causes each year). Each charity can get £1000 (ther are six draws each year, including for Ireland, Channel Islands or Isle of Man).
- My Giving Circle gives up to £2 million in grants and donations, funded from earned income. Donate a monthly amount, then ‘vote’ to help charities get the ‘top prize grant’ (say WarPaws that helps animals in war-torn countries).
- Philanthropy Together lists over 4000 giving circles worldwide, for all kinds of niche areas. Great inspiration to join or start something similar.
- Work For Good helps businesses raise funds for charities.
- Yorkshire Building Society accepts nominations from registered charities that helps job prospects in or near Bradford. Charities can apply from £100K to £500K for a period of up to three years.
