Maximize philanthropy with giving circles

Are you searching for a method to express your identity as a member of the community and use your opportunities to make a difference? Then consider joining or making a giving circle where individual donors pool their money – and other resources – and choose together where to offer it away. In short, giving circles provide a chance for people to affix others in collective charitable giving.

Joint philanthropic activities

Giving circles are a revival of an old tradition of generosity and caring that has had an impact across the country. Giving circles have turn out to be a horny philanthropy channel for ladies, minorities and donors under 40, in keeping with a report by philanthropic research group Jumpstart Labs.

According to Jumpstart Labs, giving circles provide an entry point for lower-income donors looking to have interaction in charitable giving. “I am not surprised that minority groups are more likely to participate in giving because of the influence that giving circles have in focusing and amplifying the effect of giving.” Jumpstart Labs CEO Shawn Landres told the Chronicle of Philanthropy. He added that there’s something exciting about people pooling their resources and making collective decisions about grantmaking to enhance life of their community.

Giving circles also provide opportunities for democratic participation through agenda setting, decision-making, and direct debate and deliberation, and construct the capability of their members through education about issues, organization, and grantmaking skills, reports.

Start your individual giving circle

Step 1

Find like-minded people with whom you possibly can pool funds after which split the proceeds in the shape of grants.

Step 2

Specify how much and the way often every person should donate. Members can contribute anywhere from $100 to $2,500 or more every month.

Step 3

Find a worthy cause or select an agency (e.g., a pediatric oncology unit at an area hospital or a battered women’s shelter) to which the group will donate funds.

Step 4

Decide where your giving circle will place its money before making a donation (e.g., a savings, checking, or money market account) or whether you wish members to put in writing individual checks to a cause you all comply with fund. Alternatively, resolve should you prefer a sponsor, comparable to an area foundation.

Some donor circles support local foundations that provide a wide range of services to donors who want to ascertain charitable funds without incurring the executive and legal costs associated with establishing independent foundations. Foundation Council Foundation Locator can assist you discover a community foundation in your area. Other giving circles profit from: fiscal sponsorship arrangementsunder which a public charity organization operating pursuant to Art. A 501(c)(3) means that you can make tax-deductible donations.