Join or Form a Giving Circle

Join or Form a Giving Circle

A giving circle gives you a hands-on opportunity to collaborate with others to practice giving in a supportive environment.

WHAT IS A GIVING CIRCLE?
A giving circle is, in general terms, a group of donors who place their charitable dollars into a pooled fund, and decide as a group which charities to support. Giving circle donors often commit to participation for several years at an established dollar level, and the funds are typically donated to nonprofits chosen by the entire group.

Giving circles vary in structure, size and charitable focus. Some giving circles are very informal, nothing more than a group of friends with a bank account who meet in each others' homes to discuss and decide on where their funds will go. Other giving circles have hundreds of members and governing boards, and may use a community foundation to manage the financial aspects of their giving.

Some giving circles offer members an option to designate part of their annual dues to nonprofits of their own choosing (this can be done anonymously), with the remainder going into a fund for joint decision-making. Many giving circles offer their members a chance to work on grantmaking committees and evaluate nonprofits firsthand via site visits and other volunteer activities. And often, giving circles provide a venue for discussion of broader issues related to philanthropy, such as financial planning.

Operating a giving circle may involve significant legal and tax issues. It is important that you consult with a professional advisor for further information and guidance before forming a giving circle.

GIVING CIRCLE EXAMPLES
Here are a few examples of some established giving circles:

Community Capital Alliance
Twin Cities-based Community Capital Alliance is a nonprofit, non-partisan, volunteer-led organization dedicated to engaging young citizens in community service and problem solving, and to helping develop the next generation of citizen leaders. The Alliance integrates three vehicles of community involvement: financial investment, volunteer service and educational programs. For more information, see the Alliance’s Giving Story.

Social Venture Partners
Social Venture Partners seeks to develop philanthropy and volunteerism to achieve positive social change in the Puget Sound region. Using the venture capital approach as a model, SVP is committed to giving time, money and expertise to create partnerships with nonprofit organizations.

NEXT STEPS

RESOURCES

Giving Circles
Minnesota Council on Foundations

Giving Circles Knowledge Center
Forum of Regional Associations of Grantmakers

More Impact Together:
The Growth and Impact of Giving Circles and Shared Giving
Forum of Regional Associations of Grantmakers
(PDF, 40 pages)

Giving Together: The Guidebook to Giving Circles
Forum of Regional Associations of Grantmakers
(PDF, 9 pages)

Giving Circles and Fundraising in the New Philanthropy Environment
Association of Fundraising Professionals
(PDF, 20 pages)

"New" Forms of Giving, or a New Definition of Philanthropy?
Giving Forum, Summer 2006

Donor 'Giving Circles' Awarded $13 Million in Grants in 2006
Chronicle of Philanthropy, 5/18/07

Building Community, Creating Justice: A Guide for Organizing Tzedakah Collectives, The Shefa Fund, 1994. $10. Order form
This booklet provides guidance on forming Jewish giving circles ("Tzedakah Collectives"), although much of the information could apply to any type of giving. The publication gives tips on such practical matters as how to make effective decisions and how to talk with others about money.

HELP
The Minnesota Council on Foundations is available for one-on-one consultations. Contact the Council at 612.338.1989 or info@mcf.org.