What is a giving circle?
A giving circle is a type of philanthropy in which individuals donate their time or money to a collective fund. Said collective then determines to which charity the fund should be donated, and attempts to become more knowledgeable of the challenges addressed by the charity.
Structure of giving circles
1. Informal
Informal giving circles can vote on which organizations to support, and each member pays a separate check.
2. Formal
Formal circles may have their funds kept with a local community foundation, and they may have the personnel to assist them in their work.
The Role of Giving Circles in NGOs
1. Allows participants to become acquainted with the difficulties that their communities confront and the solutions that are accessible.
Giving circles, which frequently offer gifts to NGOs that are too small for regular fundraising, often bond nonprofits to their communities. Because the majority of giving circle donations go to small, local nonprofit groups or individuals in need, giving circles allow participants to become well-versed with the challenges that their communities face and the variety of solutions that are available.
2. Much More Significant Impact
Because of their close familiarity with the issues their communities face, giving circles are more equipped to make a bigger impact when giving. Giving circles build ties between individuals and organization workers, granting them access that would otherwise be reserved for more significant donations. With this access, giving circles can ask nonprofit directors to present the issues they are tackling within their communities.
3. Increased Funding
Giving circles increase the level of funding available by widening the demographic span of those who wish to donate. By allowing more people access to the world of philanthropy, giving circles introduce more funds into the sector.
4. Entry points for Donors
Giving circles often act as entry points for donors; they make it possible that people with a small number of funds to have a bigger impact on the nonprofit scene.
