What Are Giving Circles?

A giving circle is a group of individuals who pool their charitable donations and collectively decide how to distribute those funds to nonprofits, schools, or other specific causes.

From 2017 to 2023, participation in collective giving grew to 4,000 giving circles contributing more than $3.1 billion to social causes.

As the fundraising and grant-based landscape faces political headwinds, giving circles offer nonprofits and schools a resilient, community-driven approach to diversifying revenue streams beyond traditional grants and donations.

How Do Giving Circles Work?

Giving circles operate on a simple but powerful model: members contribute a set amount (either regularly or for specific projects), then come together to research, discuss, and democratically vote on which organizations receive their pooled funds.

The typical process follows these steps:

• Contribution phase: Members commit to donations that can range from small amounts (like $10-$25) to larger contributions ($1,000+), with some circles asking members to simply give what they can
• Research and nomination: Members propose support of certain nonprofits, schools, or organizations and gather information through presentations, site visits, and due diligence
• Democratic decision-making: The group meets to discuss options and vote on funding recipients
• Grant distribution: Pooled funds are distributed to selected organizations
• Ongoing engagement: Many circles maintain relationships through volunteering, advocacy, and follow-up impact reporting

What Are the Benefits of Giving Circles?

Benefits for Members

• Amplified impact: Individual donations are pooled to create larger, more meaningful grants
• Community building: Connect with like-minded philanthropists who share similar values and interests
• Learning opportunities: Gain deeper understanding of local issues and nonprofit operations through group research and site visits
• Professional development: Develop leadership, collaboration, and decision-making skills through group participation

Benefits for Organizations

• Larger gift amounts: Pooled donations typically result in significantly larger gifts than individual contributions
• Sustainable funding: Many giving circles provide recurring contributions, offering nonprofits and schools a stable and predictable funding source over time
• Enhanced engagement: Circle members often become long-term supporters, volunteers, and advocates
• Local focus: Most giving circles focus on their local community, often supporting smaller organizations with budgets under $1 million

Types of Giving Circles

Grassroots Giving Circles

Grassroots giving circles are self-organized groups that emerge naturally within communities, usually operating with informal leadership and focusing on local causes. These circles prioritize making a difference in their own neighborhoods and are often open to learning about community-based organizations through presentations and outreach.

• Example: Moving Mountains Giving Circle in Boulder County, Colorado, addresses food insecurity through giving, volunteering and educational activities, and has given away more than $65,000 to promising community-based nonprofits since launching in 2021.

Identity-Based Giving Circles

Identity-based giving circles are groups that define themselves with reference to race, ethnicity, age, gender, or sexual identity, with research showing about 60% of circles fall into this category. These giving circles focus on supporting causes and organizations that serve their specific communities.

• Example: The Asian Women Giving Circle, founded in 2005, focuses on empowering and supporting Asian American and Pacific Islander women and girls through collaborative grantmaking and community building initiatives; the group has distributed more than $1 million in grants.

Corporate Giving Circles

Corporate giving circles are workplace-based circles that allow employees to come together, pooling their own resources or leveraging company-provided funding to make a larger impact on causes they care about. These represent significant opportunities for nonprofit engagement with corporate partners.

• Example: Cisco’s Employee Giving Circle, in partnership with the Silicon Valley Community Foundation, enables employees to collectively fund local nonprofits focused on education, economic empowerment, and critical human needs.

Institutional Giving Circles

Institutional giving circles are formal circles with established legal structures and systematic operations, often hosted by community foundations or larger organizations. These circles typically offer professional administrative support and established governance frameworks.

• Example: Impact100 was founded as a giving circle composed of women who each give $1,000 and then decide together where to give the collective donation; it has since grown into chapters throughout the United States as well as internationally.

How Nonprofits and Schools Can Promote Giving Circles

Organizations can support the growth of giving circles by introducing the concept to their current donors and offering clear ways to get started.

This might include explaining how group donations can go further than individual gifts, or offering to be a trial partner for new circles that are still learning how to give collaboratively.

Schools and nonprofits also can connect with giving circles that already exist in their area.

Directories like the Global Giving Circle Directory make it easier to find local groups. Once identified, organizations can reach out with a focused, thoughtful presentation that shows how their work aligns with the circle’s interests.

The goal is not only to attract funding, but also to build a relationship. By positioning your organization as both a worthy cause and a willing partner, you create space for shared learning and long-term support.

How Blackbaud Can Help

Blackbaud’s fundraising solutions, such as Blackbaud Raiser’s Edge NXT®, help nonprofits and schools identify, track, and steward giving circle relationships through advanced donor management systems that accommodate group giving patterns and collective impact reporting.

Blackbaud technology enables organizations to efficiently manage multiple member contacts within giving circles while providing the sophisticated communication tools needed to engage these collaborative donor communities effectively.