'Giving Circles' Boost Philanthropy on a Grassroots Level, Report Finds

According to a new report from New Ventures in Philanthropy, an initiative of the D.C.-based Forum of Regional Associations of Grantmakers, giving circles — small groups of philanthropically minded friends, neighbors, families, or acquaintances — have become a growing force in philanthropy, investing more than $44 million in communities nationwide since 2000.

Seventy-seven giving circles, representing about 10 percent of all such groups, provided information for the report, Giving Together: A National Scan of Giving Circles and Shared Giving. Of those surveyed, 57 percent were women-only or majority female, while 42 percent involved an even mix of men and women. The survey also found that 70 percent self-identified as predominantly white, 12 percent were racially or ethnically mixed, and 5 percent were African-American. New Ventures believes the trend toward racially or ethnically mixed circles will continue to grow.

The giving circles surveyed donated to a range of causes, including youth development (34 percent), women and girls (27 percent), human services (25 percent), and mental health and crisis intervention (20 percent), with the level of giving ranging from as little as a dollar a day to $20,000 for each member or couple per year.

"The influence of giving circles has been spreading for years, but until now there has been little research to document it," said New Ventures researcher and deputy director Jessica Bearman. "Giving Together confirms that Americans are finding ways to be more involved in philanthropy, have greater control over their charitable giving, and ultimately create a bigger impact. The findings also give us a better understanding of how successful giving circles get started, so we can help others get engaged in this activity."

To read or download a draft of the report (59 pages, PDF), visit: http://www.givingforum.org/givingcircles/downloads/Long%20report.pdf.

"Communities Nationwide Come Together to Change the Face of Philanthropy." New Ventures in Philanthropy Press Release 02/08/2005.