Giving circles, a highly participatory form of philanthropy, have gained popularity in recent years as a way for individuals to increase their awareness, engagement and impact in the giving process.

Giving circle members donate money to a pooled fund, decide as a group where to invest their resources, and typically engage in social or educational activities associated with the giving. Many circles, in addition to donating funds, also contribute their time and skills to support charitable causes. Donations may range from spare change to thousands of dollars each year.

A 2005 study conducted by Angela Eikenberry, author of Giving Circles and Fundraising in the New Philanthropy Environment, found that giving circles bring both long-time and new philanthropists to organized philanthropy. The study revealed that participation in giving circles,

• increases levels of support
• brings “new money” to the nonprofit sector, especially to small and locally-based organizations
• attracts donors to charitable causes they may not have supported otherwise.
• help donors undertake more thoughtful, focused and strategic personal giving, often owing to the educational and volunteer experiences gained through participation in the giving circle.

Giving circles can be loosely defined as small groups, loose communities of interest or highly structured organizations of individual participants. Regardless of size or level of formality, most giving circles have one feature in common -- a willingness to pool resources and expertise to contribute directly to a cause in way that has significant impact.

In 2007 the National Post that in Canada, giving circles are a relatively new trend that is quickly gaining momentum and popularity. The article highlights success stories, interviews Giving Circle recipient organizations. http://www.cfcfcc.ca/news_room/media_stories_view.cfm?id=225

Interested in starting a giving circle?  Check out this list of the Ten Basic Steps in Establishing a Giving Circle, provided by the Giving Circles Knowledge Center, located on the US-based Forum of Regional Associations of Grantmakers’ website: http://www.givingforum.org/s_forum/sec.asp?CID=611&DID=2661

If you are a member of a giving circle and would like to share your story, please contact us at info@redlettercounsel.com.