The power of giving circles

Giving circles empower philanthropists to pool their dollars in support of causes that matter most to them

Giving collectively is a concept as old as humanity itself. Today, this ancient tradition is finding new life in the modern form of giving circles, which are surging in popularity across the United States. Through this model, individuals—across all ages, racial and faith identities, geographies, professions, and wealth levels—pool their dollars in support of causes that matter most to them, in order to have a greater collective impact.

What is a giving circle?

Simply put, a giving circle brings together a group of people with shared interests and values who pool their resources, knowledge, and networks to collectively support a cause chosen by the group. It typically includes shared or democratic decision-making, community connections, and pathways for learning and engagement, all aimed at achieving amplified impact and empowering communities.

There are circles with as many as five members and those with more than five hundred, where each person gives just a few dollars or several thousand dollars a year, spanning every generation, geography, and identity. The power of this model lies in the long-term community that is built, the shared learning among members, and the opportunity to build lasting relationships with local nonprofits on the frontlines of social change in your community.

While giving circles come in many sizes, with members of countless backgrounds and innumerable interests, many follow (and repeat) these steps over the course of several months or a year:

• Gather a group of friends, family, co-workers, or community members and meet regularly, whether in person or virtually.
• Discuss the vision and values that motivate you to give, find commonality among the members of your giving circle, and then discover local nonprofits that would be a good match.
• Decide which local nonprofit will receive your circle’s collective donation through a democratic decision-making process.
• Give your pooled donation—your individual donation is multiplied by the power of the group!
• Engage beyond your circle’s financial gift by volunteering, advocating for the organization, and opening your networks to help in other ways.

3 benefits to joining or starting a giving circle

A newly published research report, In Abundance: An Analysis of the Thriving Landscape of Collective Giving in the U.S., by Philanthropy Together, the Dorothy A. Johnson Center for Philanthropy, and Colmena-Consulting, explores the impact of the rise of giving circles in the U.S. From 2017 to 2023, participation in collective giving grew to 4,000 giving circles contributing over $3.1 billion to social causes—more than doubling the impact since similar research was conducted in 2016. With 370,000 philanthropists engaged across the U.S., the research further shows trends in how collective giving is shifting in terms of who gives, how they give, and ultimately what gets funded, with many benefits such as:

• Discovering and funding local promising nonprofits: Three-quarters of giving circles (75%) bring together members of a local community and give to that same local community, often to nonprofits with smaller budgets of under $1 million. Among giving circle members, 86% report an increased ability to understand their community or specific issues of focus. Giving circles are a great way to find and fund new organizations in your community.
• Gaining confidence in taking action: Eighty-six percent of members said participation in their giving circle increased their confidence when taking action to change their community.
  
• Finding your community: More than 9 in 10 giving circle members (91%) say that joining a giving circle has increased their sense of belonging to a community, and more than 75% say they are better able to live their values and purpose. When looking to make new connections in your community, a giving circle is a great place to start.

As graduates of Launchpad in spring 2021, Lynne Garfinkel and Pam Lowy of Boulder County, Colorado, had a vision for starting a giving circle. Since launching, Moving Mountains Giving Circle, which addresses food insecurity in Boulder County, Colorado, through giving, volunteering and educational activities, has given away more than $65,000 to promising community-based nonprofits.

How do I find or start a giving circle?

Philanthropy Together, a global nonprofit initiative to build a thriving collective giving movement, offers numerous resources for finding or starting a giving circle. The Global Giving Circle Directory, built in partnership with the tech platform for giving circles, Grapevine, can help you find giving circles near you.

Launchpad For You: Jumpstart Your Giving Circle is a virtual, interactive training course to help you get started with your own circle, with step-by-step guidance on how to move from ideation to launch. Philanthropy Together additionally offers coaching sessions, resources, and toolkits to support you on your journey.

How can I support giving circles through my Fidelity Charitable Giving Account?

If you’ve been looking to increase your impact, expand your giving horizons, or find a community of other donors, a giving circle might just be the perfect next step in your giving journey. To learn more about the power of giving circles and how to leverage your Fidelity Charitable Giving Account for deeper impact in your community, watch the on-demand webinar Grow Your Impact: Learn About Giving Circles. You’ll hear from the Fidelity Charitable Catalyst Fund and Philanthropy Together as they share how you can utilize giving circles to multiply your impact.

Philanthropy Together is a grantee of the Fidelity Charitable Catalyst Fund. The Catalyst Fund is a grantmaking program of Fidelity Charitable, led by our Board of Trustees and separate from Fidelity Charitable’s donor-advised fund program. Learn more. 

Reprinted with permission from Philanthropy Together. The views and opinions of third-party content providers are solely those of the author and not Fidelity or Fidelity Charitable. Fidelity and Fidelity Charitable do not guarantee the accuracy of the information provided by such third parties. This reprint is supplied by Fidelity Charitable.