Imagine a philanthropic force working outside your organization to amplify your fundraising. Giving circles, a collective donor group that acts as an external force, have witnessed a significant surge in popularity over this past decade.
According to Philanthropy Together, there are 2,500+ giving circles with more than 1550,000 participants who have collectively contributed more than a billion dollars, making them a substantial catalyst for fundraising efforts.
A giving circle is a group of donors that come together to pool money for an organization. The circle might include friends, family members, or co-workers. Sometimes even a seemingly random group comes together to support the cause.
Why Giving Circles Work
Collective giving, or a giving circle, creates a sense of belonging between the people raising money for your organization’s mission and purpose. When people with shared values come together to make a change, their efforts and collective gifts power your organization’s ability to make a difference.
Particularly favored by women, giving circles create a sub-community around your nonprofits. Women control or influence 85* of purchases in the United States and contribute to nonprofits more than men, so it’s unsurprising that they constitute nearly 70% of circle members.
They most likely support local community issues that mirror national trends with higher activity in human services, women’s issues, and education. If your nonprofit works in these areas, you certainly have a bit of a leg-up.
But giving circles aren’t only groups of women – they can be small or large, work locally or globally, make donations of any size, and have participants of all backgrounds. The de facto membership of a giving circle creates appeals to many folks who enjoy being part of something greater than themselves. A giving circle also provides an element of collective influence for participants since each giving cycle allows the members to choose a new project to fund.
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Benefits of a Giving Circle for Participants
Giving circles are becoming more popular because they work. They provide benefits for both nonprofits and individuals who participate.
Key benefits for individuals:
- Community Building: Giving circles foster community among members with shared values and interests. Participants often develop meaningful relationships through their shared commitment to philanthropy.
- Increased Impact: Pooling resources allows giving circles to substantially impact charitable organizations more than individuals might achieve on their own. The collective contributions amplify the effect of each individual’s donation.
- Learning and Education: Giving circles allow members to learn about philanthropy, nonprofit organizations, and social issues. Discussions, presentations, and site visits help members become more informed and effective philanthropists.
- Empowerment: Participating in a giving circle empowers individuals to directly impact the causes they care about. Members often feel a sense of ownership and accomplishment as they collectively decide where their contributions will go.
- Flexible Models: Giving circles come in various forms, allowing for flexibility in structure and focus. Whether based on shared interests, geography, or a specific cause, participants can choose a model that aligns with their preferences.
- Social Networking: Memberships provide opportunities for social networking among philanthropically-minded individuals. Beyond the charitable aspect, members often connect professionally and personally, expanding their social networks.
- Catalyst for Change: By supporting innovative solutions and initiatives, giving circles can catalyze positive change. Their collective resources can be directed toward projects needing help securing funding through traditional channels.
- Long-Term Commitment: Joining a giving circle encourages a long-term commitment to philanthropy. The regular meetings, discussions, and shared experiences foster a sustained interest in and dedication to charitable giving.
- Philanthropic Education for Future Generations: Giving circles often involve educational components, exposing younger generations to the principles of philanthropy. This can instill a sense of social responsibility and a commitment to giving back in future generations.
Participating in or establishing a giving circle can offer a rich and rewarding philanthropic experience, combining the joy of giving with the benefits of shared learning, community building, and amplified impact.
Why Nonprofits Should Care About Giving Circles
When a nonprofit organization is chosen as the beneficiary of a giving circle, the impact is huge. While giving circles provide exponential support with their dollars, their existence also builds awareness, broadens your reach, informs and educates, and some members may even become volunteers or board members. Here are some key reasons why nonprofits should pay attention to and actively encourage the formation of giving circles.
- Amplified Giving: Giving circles pool resources from multiple individuals, resulting in larger and more impactful donations than what an individual donor might contribute.
- Sustained Support: Giving circles often involve recurring contributions, providing nonprofits with a stable and predictable funding source over time.
- Stronger Community Ties: Giving circles foster a sense of community among participants who share a common interest in supporting a particular cause. This can strengthen the nonprofit’s ties with its supporters. Nonprofits can leverage giving circles to connect with a broader network of individuals, creating opportunities for collaboration, partnerships, and increased visibility.
- Informed and engaged donors: Giving circles often involve educational components, helping participants become more informed and engaged philanthropists. This can lead to a more thoughtful approach to giving and a deeper understanding of the nonprofit’s mission.
- Advocacy Potential: Educated donors from giving circles may become advocates for the nonprofit’s cause, helping to spread awareness and attract additional support.
- Personal Connections: Giving circles provide a platform for personal connections between donors and the nonprofit. Participants often feel a stronger connection to the causes they support, fostering loyalty and long-term commitment.
- Inclusive Decision-Making: Giving circles typically involve diverse groups of individuals, bringing different perspectives and experiences to the decision-making process.
- Varied Models: Giving circles come in various forms, allowing nonprofits to adapt their approach to different demographics, causes, or geographical areas.
A report from Nonprofit Quarterly said it best: “The diversity of scale and scope of giving circles is what makes them both exciting new vehicles in the philanthropic landscape and challenging ones to develop a cultivation strategy for.”
The bottom line is that a strategic giving circle can have a significant financial impact on your organization. They offer a unique and impactful avenue for fundraising, community engagement, and strategic philanthropy. The collaborative nature of giving circles aligns well with the goals of many nonprofits, fostering a sense of community, increasing financial support, and promoting a more informed and engaged donor base.
You can encourage prospective or current donors to use the giving circle model to make donations to your organization, like St. Jude’s does on the “Get Involved” page, seen below. 
How to Start a Giving Circle
Launching your giving circle is not just about raising funds; it’s about fostering a community of like-minded individuals dedicated to making a positive impact. As you embark on this collective journey, the potential for meaningful change and the satisfaction of seeing your combined efforts create lasting effects will be rewarding and fulfilling.
It’s abnormal for nonprofits to launch their giving circle – it falls to individuals with a shared passion. However, like the example above, your nonprofits can encourage folks to give this way or can spend some time connecting with giving circles whose vision aligns with your organization.
Create a Founding Team
Reach out to people you know who have similar interests and may be interested in working collaboratively to build a community of givers. Be thorough, share your passion, and have deeper conversations to ensure your founding members are a good fit.
Understand Your Shared Values
Deciding on shared values is essential to establish how the group will work together. According to Philanthropy Together, there are four primary shared values for giving circles: community and networking, equity and justice, personal development, and giving impact. You can choose one or all.
Decide on Your Vision
When it comes to vision, there’s no wrong answer. Your vision needs to fit the goals of your giving circle. Gather your team to determine the basic parameters of your circle, including its size, focus, financial contribution amount, and giving cycles.
Start Building Your Community
When building your giving circle community, the first thing that comes to mind is not building a landing page for your giving circle. However, a landing page will be a hub of information about your giving circle and where you can post about gatherings, virtually or in person.
It should include information about your vision, values, and focus. You’ll also want to ensure you’re introducing folks to the founding team and giving them an easy way to contact you through email or a contact form.
Use simple and inspiring language to share your passion and get your network involved. Make sure to include a form for prospective members to register interest!
Once the page is ready, brainstorm a list of prospective members. Each founding member should contribute to this list, ensuring that their suggestions align with the group’s values and will foster a sense of community.
With a list finalized, reach out to these individuals. You’ll want to share why you decided to approach them and make your appeal to them. Lastly, share your site with them to ensure they have easy access to more information about your giving circle.
Amplify your fundraising with a GiveWP Plan
How to Setup Online Giving for Your Giving Circle
Financial contribution determination? Check. Giving Cycle decided? Check.
Managing donation dollars…. crickets
Managing the financial contributions of a giving circle each giving cycle can quickly get out of hand if you don’t have a trusted way to collect funds from your members. That’s where GiveWP comes in. The platform allows members to contribute through your website, with a powerful donor database for efficient management.
While it may not be explicitly designed for giving circles, you can still use it to collect contributions for your giving circle. And you can get started for free. Here’s how:
- Install and activate GiveWP
- Connect to a Payment Processor
- Create a campaign page for the upcoming giving cycle
- Add a Donation form
GiveWP Forms are easy to integrate into your WordPress website. They can be stand-alone pages or embedded in another page with a shortcode or widget. Check the documentation for more information.
The free version is robust – with features like a donor database, unlimited donation forms, and on-site credit card processing.
Alternatively, if your giving circle supports a single charity, but each giving cycle is focused on a different initiative or project, you may be able to work with the nonprofit to create a donation page that is just for your circle members. This makes managing circle donations easier and gives the nonprofit more information about your circle.
Enhance Your Online Setup
Once you have a landing page for your giving circle and a form for donations, other GiveWP add-ons can make communicating and managing this team effortless.
Because of a giving circle’s social and group nature, consider adding a swag store with a donation upsell. This allows circle members to purchase giving circle merch to wear proudly in their day-to-day lives or at gatherings for your members. The Donation Upsells for WooCommerce add-on allows donors to purchase and donate simultaneously.
Finally, connect an email marketing tool like Mailchimp or Constant Contact. An easy way to update circle members, email marketing tools make communication efficient, whether you want to send an update, remind members to submit their financial contributions, or let them know when your next meeting is.
Start Your Giving Circle
By fostering a sense of community, engagement, and collective impact, giving circles empower nonprofits to achieve their missions effectively. If your organization does not have a group of collective givers, consider how you can get your nonprofit to be top of mind for a circle that aligns with your mission.
One such way is to peruse the online giving circle directory, a joint effort between Philanthropy Together and Grapevine. The directory has more than 2,500 groups and allows you to filter out based on the circle’s focus.
With the help of tools like GiveWP, your circle can take a strategic approach to maximize its impact with a safe and secure way to collect funds from circle members. Schedule a demo with the customer success team, or download GiveWP free to try it out now.
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