Giving Circles

A giving circle is a form of participatory philanthropy where a group of individuals donates their money to a pooled fund and they decide together which nonprofit organizations or community projects deserve the funds. Many circles, in addition to donating money, also contribute their members’ time and skills to support selected organizations and projects. There are over 1,000 active giving circles in the U.S. 

Giving circles are one of the fastest growing areas of philanthropy. It is important to identify the giving circles operating in your region, as they may play a significant role in your grantseeking efforts, particularly if you are a startup or are launching a new project. Members of a giving circle are often open to investing where others will not.

Grants from most types of grantmakers should not exceed more than 50% of your grants portfolio, except for a one-time special project. However, membership in giving circles can significantly change year to year, directly impacting your request, so we suggest that their contribution not exceed 20%.

According to a 2017 study, the average donation amount of a giving circle participant in the U.S was just over $1,300, with the median donation level being $400. The amount of individual donations may be somewhat small, but an accumulated amount of $27.7 million was granted. Giving circles generally have a set amount to disperse each year, and typically provide grants within a defined range.

Giving circles can help build a strong foundation for the work you do. Many giving circles are focused on a mission or issue, such as empowering women or social justice. These circles often provide general operating funds and capacity building grants to organizations working in their interest area.

If you are new to grantseeking, we suggest applying to a local or regional giving circle first. The application process is usually fairly easy, the turn-around time is quick, and it allows you to demonstrate local support when pursuing other funders.

Go to our Charitable Giving database for the U.S. or Canada and use the Type of Grantmaker filter to select “Giving Circles.”

Always ask your regional community foundation if they house a giving circle, as many of them do!

If you decide to apply to a giving circle, be aware that they often invite applicants to come to their meeting to make a presentation or simply answer questions. Giving circles are committed to educating their members on issues, so an informative presentation goes a long way toward building a strong relationship.

Know your audience! Of the 706 circles responding to a 2017 survey, 640 were led by women. Overall, 76% indicated that women made up more than half of their members.

The application process for many giving circles is much easier than for other grantmakers. For this reason, you want to make sure you understand what they are looking for and how best to present the information. Simple guidelines can be deceiving.

Consider talking to one or two other organizations that have received funding from the giving circle you intend to approach. Ask if you can review a copy of their request to see how they presented their information. For example, did they use a lot of visuals? Knowing that could be very helpful as you prepare your request.

The reporting requirements of most giving circles are generally fairly straightforward. Always a plus!

If possible, ask if you can make a personal presentation to the giving circle on the outcome of their support. If your request asked for funds that impact individual lives, bring a guest who will address how your organization has helped her.