What Is a Giving Circle? Examples, Importance, and How to Get Started

The act of giving matters more than the size of the donation. Often, people may assume that significant social change requires the help of millionaire donors with large funding streams. However, there are many ways for all donors to make a meaningful impact. Through collective giving, individuals can join forces and contribute to a powerful fundraising effort.

One of the most popular methods of collective giving is giving circles, possibly because of the simplicity of the idea. A giving circle is any group of people who pool their charitable giving together and collectively agree on where those donations go. Giving circles could be made up of family members, friends, or even co-workers, and can be as small or large as desired. Many giving circles are community-based, acting as grassroots givers in a particular region. 

Examples of Giving Circles

GrantStation has a large collection of giving circles within their database of grantmakers. The following are just a few examples of groups of individuals who are making a big difference in their local communities: 

The Los Angeles Giving Circle

The Los Angeles Giving Circle (LAGC) is a giving circle with a mission to help underserved women and girls achieve self-sufficiency in their lives. The LAGC does this by providing support to a variety of grantees within the Los Angeles area. Each year, the LAGC’s members select a list of nonprofits to receive a grant. 

The Masala Giving Circle 

The Masala Giving Circle has the stated goal of using philanthropy to create positive change in African American communities. The circle itself includes a diverse array of African American women, based mainly out of Florida. The circle grew from just seven original members to over 115, and has awarded over $250,000 in grants in specific Florida counties. 

Orchid Giving Circle 

The Orchid Giving Circle is a women’s giving circle which uses philanthropy to empower the Asian-American community in North Texas. This giving circle has raised over $2 million in the past ten years, donating to over 60 different nonprofits. Beyond grantmaking, this giving circle hosts networking forums to help participants find philanthropy mentors and peers. 

Restaurant Giving Circle 

The Restaurant Giving Circle is a great example of a giving circle with an industry focus, helping those who work in the restaurant business. It’s also a great example of how even a small group of donors can put together an effective giving circle. This giving circle focuses on just giving one grant a year to a charitable agency—a workable goal for many starting donors. 

Why Are Giving Circles Important for Nonprofits?

The funds provided by giving circles are important, but there are other benefits for nonprofit organizations. 

• Access to Donors: They provide a direct connection to motivated donors who are interested in making an impact.
• Engaged Giving: Giving circle members are often highly involved, seeking transparency and opportunities to engage personally with the organizations they support.
• Long-Term Partnerships: Many giving circles are relationship-driven, providing opportunities for lasting connections and repeat funding.

How to Engage Giving Circles

• Research the Circle's Focus: Learn about the circle's mission, values, and funding priorities to ensure alignment with your nonprofit’s goals.
• Build Relationships: Engage with individual members and attend their events to establish rapport and demonstrate your nonprofit's value.
• Be Transparent: Share clear, compelling information about your programs, outcomes, and financials, as many giving circles expect accountability.
• Offer Engagement Opportunities: Allow giving circle members to visit your programs, volunteer, or attend informational sessions.

Tailor Your Proposal

• Be specific about how their contributions will be used and the impact they will create.
• Highlight stories and examples that resonate with the giving circle’s mission.

Understand the Dynamics

• Decisions are made collectively, so your nonprofit needs to appeal to the group as a whole rather than focusing on one individual.
• Giving circles may have a formal or informal structure, affecting how decisions are made and funding is distributed.

Understanding and leveraging the power of giving circles can lead to significant opportunities for funding, networking, and raising awareness about your nonprofit’s mission. It is a great way to diversify revenue streams and engage your community.