Giving Circles, sometimes referred to as Shared Giving, comprise philanthropic-minded people who come together to give together to support charitable organizations. In the coming years they have the potential to swell into a tsunami of grassroots philanthropy — and your organization's brand may make the difference as to whether or not you are the recipient of their generosity.
An Alternate Source of Revenue
Given the current state of the U.S. economy—everything from the shrinking of government funding for social programs to the credit-crunch crisis to the uncertainty on Wall Street and in the stock markets—smart nonprofits are looking for alternate sources of funding. And, for many nonprofits Giving Circles may be an option.
The New Ventures in Philanthropy Initiative at the Forum of Regional Associations of Grantmakers, in a nationwide survey, documented 400 Giving Circles across the U.S. It conducted a sample survey of 160 of these circles, and in June 2007 released a report of its findings called "More Giving Together."
The Forum found that:
- In 2006 alone, the Giving Circles surveyed donated $13 million for community needs. It is estimated that, in all, Giving Circles have raised an estimated $100 million since 2000.
- Nearly 12,000 people participate in the 160 circles surveyed by the Forum.
- While once considered a women's philanthropy phenomenon, nearly half of circles now have male members. The popularity of Giving Circles is also growing among people of color and in the gay and lesbian community.
- Nearly a third of circles surveyed have been through more than five rounds of grantmaking.
What Giving Circles Look for in a Nonprofit
Depending on the communities in which they are located, as well as their giving criteria, individual Giving Circles have scores, hundreds, perhaps even thousands of nonprofits from which to choose to give their money.
What do you think your chances are of receiving their largesse if your organization is one of those "best kept secrets" that does wonderful work, but no one really knows who you are, what you do, how you do it--or why they should care enough to support you? In other words, if you have little, if any, brand visibility?
According to Sandy Bettger, executive director of the Giving Circles Network, feedback from the GCN Giving Circles Advisory Panel, comprised of representatives from Giving Circles from across the U.S., nonprofits should consider the following “brand characteristics” when appealing to all donors, including Giving Circles:
- What is your non-profit's philosophy, mission and core values, and do you make them known to potential donors?
- Can you demonstrate that your organization is continuously learning through experience and subsequently developing new offerings and techniques to improve the quality of its services or product delivery?
- What is your track record of success. In other words, how does your nonprofit know that it is meeting its objectives in addressing community needs and does your nonprofit communicate that in understandable terms to potential donors?
- Does your organization enable donors to engage in some form of partnership that may enhance trust, communication and the chances of funding?
- How does your nonprofit demonstrate and communicate its fiscal responsibility and ethical standards, including potential conflicts of interests?
For more information on Giving Circles, including a list of those that may exist in your area, log onto GivingForum.org or GivingCircles.org.
