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Step 1
- Set Goals and Structure
To begin, identify a group of people who have an interest in coming together to
form a giving circle. The common link between these people may be that they are
peers, colleagues, or family members, or simply that the group has a common area
of interest (i.e., education, arts, the environment).
Bring your group together for a first meeting to
begin the process of setting goals and structure for your circle. There are
several decisions that can to be made in the early phases of a giving circle
that you may want to begin to discuss at this meeting. Some of these are:
- How many times will the group meet?
- How will we determine our funding focus?
- Where will we hold meetings?
- Is there a limit on number of participants?
- What is the size or range of the financial
contribution each member will make?
- What is the required time commitment for each
member?
You may want to consider asking a facilitator to
lead the discussions for the first few meetings.
Step 2 - Establish Mission and
Commitment
Once the group sets up regular meetings, it is a good idea to establish a
mission, set meeting guidelines, agree on common goals and objectives, even
think of a name to call your group. Generally the first few meetings will be
spent firming up the circle's structure. It is also a good idea to give all
members of the group the opportunity to work on tasks. Creating a rotating
chair, designating a treasurer and setting up "committees" or work
groups will build the common purpose.
As an independent group, you can set your own
guidelines for operation. There is no specific "rule book" you need to
follow. But there are decisions that need to be made, and determining the
process for making decisions ahead of time will facilitate smooth operation.
Things to remember: It is up to your group to
determine the contribution amount that each member should make to the giving
circle. There are circles that require $50, $500, $5,000 or even $25,000 in
annual commitments from their members. It is important for the group to have 100
percent consensus on the final amount.
Step 3 - Decide How to Administer
Your Funds
It is recommended that all members make a financial commitment to the giving
circle at the start of each year. There are various options for how you can
manage and administer your giving circle's funds. You can:
- Open a joint bank account
- Partner with an organization that can act as a
financial administrator of the funds
- Establish a donor advised
fund at a community foundation
- Create a public
foundation
- Write individual checks to the chosen
charity(ies) once donations have been determined
- Explore other creative options
There are benefits to all the options, depending
on the circle's needs, experience and structure.
Step 4
- Establish a Focus Area
You group needs to decide the area(s) where it wants to direct your
contributions. This step may take some time and discussion to determine. You may
want to choose a process to find a common area(s) of interest. Encourage the
group to define the focus area specifically. For example, if the group is
interested in health issues for women, what specific health issues? For a
particular age range? Demographic? Define the geographic area where you will
seek out potential organizations or service providers.
You may want to invite "experts" in the
field to present information sessions to the group or assign group members to
investigate particular issues. This is an area in which consensus is important
for the giving circle. It is the combination of time, treasure and talent toward
one common focus that can create the investment impact.
Step 5 - Create Work Groups
Once the focus is established, having members of the group volunteer for
particular tasks will build personal commitment and interest in the work of the
giving circle. These smaller groups can look at such issues as: What charity is
doing the best work in your field of interest? How do you know?
Step 6 - Develop Process and
Criteria for Making Funding Decisions
This is an ideal assignment for a committee. You may decide to take a
traditional approach and ask for written applications from a charity or you may
evaluate a group in another manner. What will be the criteria for determining
who receives funding? Will you review grant applications? Will you visit
specific organizations that could "qualify"? What kind of a report
will you want at the end of the project period from the recipient of these
funds? This process can be as simple as choosing a recipient organization based
on information you gather and then writing a check to that group, or as involved
as reviewing written applications, visiting the organization's headquarters or
project area, and/or asking for a presentation.
If your group is unsure of how to assess an
organization, you may want to consider asking someone with a background in
grantmaking or nonprofit administration to offer assistance (or maybe someone in
the group could take on this role).
It is also important at this stage to establish
final evaluation criteria. How will you measure your giving circle's impact? How
will the organization(s) that receive funding measure the impact of this
funding?
Step 7 - Define/Develop
Partnerships with Recipients
Determine how, or if, your members want to be involved with the organizations
that you fund. Do members of your group want to volunteer for an organization
you have funded? The group should define in what ways they can offer assistance.
Web development, finances, program planning, legal work and mentoring are some
examples of ways your members might get involved. Be clear with the expectations
of all involved in this new partnership.
Step 8 - Review Potential
Recipients
If you accept proposals from potential recipients, you need to review and
evalaute the proposals according to criteria that you established in Step
6. Conducting site visits with potential recipients can be enormously
helpful in the deciding where to give your funds. This is the time to ask
questions, get clarification about something that maybe wasn't clear in the
proposal, and see things in action.
The group should set aside plenty of time to
discuss the potential recipients (up to five hours, depending on the number of
proposals to review). There are often compelling reasons to fund many
organizations, and members may feel strongly about funding different
organizations. Therefore, time is needed to go through this process and end up
with funding decisions that are satisfactory to all members.
Step 9 - Make Contribution(s)
Immediately following the group's decision, alert the recipient of your
intentions, letting them know when they can expect a check. If you accept
unsolicited funding proposals, it is good practice at this time to inform those
organizations that will not be funded of your decision.
Step 10 - Evaluate the Impact of
Your Giving
Be sure to take the time to examine the short-term and long-term goals of your
giving circle on a regular basis. This will help develop a sense of satisfaction
with the work you are doing and show how your contributions are making a
difference. It is important to look at your work and discuss what you've
learned, what you want to do the same or different next time, and what the next
round of funding will look like in terms of time and calendar. Candid feedback
from the organizations you have funded and partnered with will always be an
important ingredient of this process. Be sure these lines of communication are
open.
This information has been adapted from resources developed by Giving
New England, and used with permission.
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