Donor ‘Giving Circles’ Awarded $13-Million in Grants to Charities Last Year, Report Says

By Elizabeth Schwinn

Groups of people around the country who pool their contributions and then decide collectively how to donate them gave an estimated $13-million to charity in 2006, according to a new report.

Over all, such “giving circles” have raised a total of about $88-million. Most of the money has been donated since 2000, according to the latest research, which was conducted last year and this year by the Forum of Regional Associations of Grantmakers, in Washington.

Researchers identified 400 “giving circles” in 44 states and Washington, D.C., and received responses to their questions from 160 groups, which represent more than 11,700 donors.

The study suggests that giving circles continue to be a popular way to give money: A third of the groups have been formed in the past two years.

In addition, many of the giving circles are now well-established, according to the report: Forty-two of those that responded have been in operation for at least five years.

A majority of the grants made by giving circles support education, youth development, or programs for women and girls. Some 47 percent of the organizations include men among their members, and slightly more than half consist exclusively of women.

People who participate in such collective grant making often provide additional financial and management assistance to charities on their own, the report says.

Nearly one-third of the giving circles that responded to the survey said their members make additional contributions to the charities the circles support or consider supporting. In addition, 65 percent of members perform volunteer work, 43 percent serve on a charity board, and 35 percent help with fund raising at charities.

The giving circles that participated in the survey ranged in size from a handful of members to several hundred.

The report, “More Giving Together: The Growth and Impact of Giving Circles and Shared Giving,” and a summary of its findings are available online. Free copies of the report may be obtained from Rick Rose, Forum of Regional Associations of Grantmakers, 1111 19th Street, N.W., Suite 650, Washington, D.C. 20036; (202) 467-1120; rrose@givingforum.org.