The Momentum Fundraising Glossary

Giving Circle

Definition

A giving circle is a group of individuals who come together to pool their charitable donations and collectively decide how to distribute those funds to nonprofits or specific causes. This concept enhances the impact of individual contributions and fosters a sense of community and shared purpose among members. Typically, members meet regularly to discuss their philanthropic interests, identify potential grantees, and make the decision on where to allocate the pooled resources. Giving circles can vary in size, focus (such as specific issues like education, environmental conservation, or social justice), and structure, with some being formalized as nonprofits themselves. They empower individual donors to be more engaged in the philanthropic process, allowing for collective learning, networking, and increased impact through collaboration.

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Common Misperceptions

A common myth is that giving circles are only for wealthy individuals.

In fact, giving circles can be composed of individuals from diverse financial backgrounds. Many circles encourage contributions of varying amounts, making philanthropy accessible and inclusive, allowing people to engage in charitable giving regardless of their financial capacity.

FAQ

What is the main purpose of a giving circle?

The primary purpose of a giving circle is to bring together a group of donors who share similar philanthropic interests, enabling them to pool their resources and make a larger impact than they might individually. This collaboration enhances both financial support for nonprofits and opportunities for dialogue among members about charitable giving.

How do members of a giving circle decide where to donate?

Members typically engage in discussions about their philanthropic goals and values and may review potential grantees through presentations, site visits, and research. After deliberation, they vote on which organization(s) will receive their pooled donations, ensuring that the decision reflects the collective priorities and interests of the group.

Can anyone join a giving circle?

Most giving circles have specific guidelines for membership that can include criteria such as interest in certain causes, a minimum donation commitment, and a willingness to participate in discussions and meetings. While some circles are open to anyone, others are more selective and may target specific demographics or communities to foster a shared mission.

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