May 9, 2007 | Read Time: 1 minute
Giving circles — groups of people who pool their money and decide collectively where they would like to donate — are touted by some as a way for donors to get more bang for their charitable buck.
But Jim Bush, a fund-raising consultant for Blackbaud, worries that giving circles could ultimately hurt charities’ fund-raising efforts.
“Giving circles take away our access to the individual and limit the interactions we can have at a one-to-one level,” Mr. Bush writes on BlogBaud.com. “And, as giving circles grow and their interests change, it’s difficult for nonprofits to find funding for multi-year projects.”
Mr. Bush, who writes that he belongs to a giving circle with a group of friends, says that many of the more organized giving circles have strict reporting requirements for recipients of their money.
“While larger nonprofits may have the staff to fulfill these requirements, my friends at smaller organizations tell me they are hesitant to go to giving circles because of the reporting burden,” he writes.
Are giving circles good for the nonprofit groups? Has your charity received money through a giving circle? Click on the comments link just below this posting to discuss these questions.
