Giving Circles Provide Opportunities & Challenges for Fundraisers

A new study has found that while giving circles have much to offer charities, in some cases the funding relationships can be uneven and have yet to reach their full potential.

Giving Circles are a form of philanthropy consisting of groups of individuals who pool their funds to donate to their communities and seek to increase their awareness and engagement in the process of giving. Through this process, they seek to impact their own communities or larger areas - possibly to global impacts. The circles can serve as a form of shared, or collective, giving in the context of community economic development or other social ventures.

The report, Giving Circles and Fundraising in the New Philanthropy Environment, was based on interviews with 17 leaders of charitable organizations that had received funding from giving circles and looks at the challenges and opportunities that this new type of funding mechanism presents.

The report was developed by Angela M. Eikenberry, Ph.D., an assistant professor at the Center for Public Administration and Policy, School of Public and International Affairs, Virginia Polytechnic Institute and State University in Blacksburg, Va. The research was made possible by a grant from the AFP Foundation for Philanthropy.

Eikenberry’s earlier research revealed that giving circles generally attract younger and female participants (as well as other groups not historically active in organized philanthropy) to the philanthropic table. Also, participation serves to increase levels of giving while bringing “new money” to the nonprofit sector, especially to small and medium-sized organizations. In addition, members are more thoughtful, focused and strategic in their personal giving because of their educational experiences through the giving circle.

The report is available for download from the AFP website

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Association of Fundraising Professionals

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