Restaurants Serve Up a Side of Philanthropy

Giving circles have been around for years, but they are one of those philanthropic vehicles that just keep gaining steam. The number of giving circles is projected to nearly double in the near future, going from 1,600 in 2021 to over 3,000 by 2025.

Back in 2018, GrantStation took a couple different looks at giving circles, but those were from a grantseeker's perspective. We recently had the chance to speak with the Restaurant Giving Circle's Doug Benn and Robert Wagner to get a look at the process from the other side of the table.

The Restaurant Giving Circle targets its support toward nonprofit groups that help the restaurant industry with financial, health, and economic needs. Doug told us, "We formed the Restaurant Giving Circle because the members in our group have a passion for the restaurant industry. We've all worked in the industry for most of our careers. It's provided a lot to each of us over our lifetimes. We formed the group to support the industry that we love, but particularly the employees in it."

The Giving Circle made its first grant of $50,000 in 2020 to the Giving Kitchen, which helps food service workers in crisis. In their second year, the Giving Circle sent out invitations to apply to several organizations but only received one application. However, that program didn't quite fit the Giving Circle's objectives, so they ended up carrying the money over into the upcoming grant cycle, which opens April 1 and ends June 1. The Giving Circle expects to make a single award of $120,000 during this grant round. Because the Giving Circle has such targeted interests, they reached out to GrantStation to help spread the word. The focus for the grant cycle will be on efforts to improve the lives of restaurant workers in areas such as health, education, economic independence, social well-being, and human rights. The grant is targeted toward organizations that have been in operation for at least three years and have annual operating revenues of more than $500,000.

Neither Bob nor Doug have been directly involved in grantmaking in the past. Doug has made charitable contributions previously, but hasn't had a leadership role with a philanthropic organization. Bob drew a distinction between being involved with nonprofits, such as in a board function, and being a philanthropist. He's worked with nonprofits for four decades, but this turn to philanthropy is a new venture for him, as well.

When we asked about why they chose a giving circle as their means of giving back, as opposed to setting up a foundation or fund, Bob said that most of the Circle's members already had their own donor-advised funds (DAFs), and that the funds they put into the Giving Circle are part of that philanthropy, going into the DAFs and then into the Giving Circle.

For folks thinking about starting a similar organization, some good news: the process isn't particularly daunting. When we asked about the process of forming the Giving Circle, Doug laughed and said, "Bob did it all, and shamelessly copied others." Bob has previous experience setting up corporations, but said the process wasn't particularly difficult, at least in Georgia.

They got in touch with Ribbons of Hope, an Atlanta-based charity that was started by friends and family of the Coca-Cola Company that focuses on making a positive impact on the lives of women and their children. Bob said that they "freely allowed us to copy some of their documents and paperwork and processes." The process, from filing the paperwork to waiting for responses and following all the steps, took about three months. "Filing corporate papers is easy and quick, and can be done basically in a day. Filing with the IRS, they've made the application process easy," he said.

When we asked if they had any advice to potential startup giving circles, Doug shared this: "Find a giving circle or other organization where you like what they're doing and get in touch with the leadership and have a discussion with them, and maybe they can give you documents and advice." Giving circles are made up of people dedicated to democratizing grantmaking, and many will be willing to help similar organizations.

Bob added, "For me, the answer is to share the passion. We were lucky enough to find six people that share that passion. It was just natural, and very easy."

The Restaurant Giving Circle is using their love of the restaurant industry to try to make the lives of those in the industry better. I'm reminded of the famous quote about a small group of thoughtful, committed citizens working to change the world. Giving circles harness the power of groups to do just that. Could you do the same? Your table is ready, if you are.