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Detail
from above:
Promote
Giving Circles - Individual Giving in a Group: Frequently Asked
Questions
The
Forum of Regional Associations of Grantmakers produced a national
survey of Giving Circles and found the following:
How
many giving circles
are there in the United States?
There
are many hundreds of giving circles in the US. In a scan conducted
in 2004, New Ventures in Philanthropy found 220 circles. However,
this number certainly undercounts the real total of giving circles
in the country and is estimated to be four or five times greater.
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Is
it true that giving circles appeal only to women?
No
– in fact, giving circles have wide appeal across gender,
race, and age. Although giving circles are traditionally known for
appealing to women, the survey sample is fairly evenly split between
those that self-identify as women-only or majority female (57%)
and mixed gender (42%),
Where
are giving circles found?
Giving
circles are found throughout the United States, from Los Angeles,
CA to Portland, Maine and everywhere in between. Although they tend
to be concentrated in urban centers, they can also be found in small
towns such as Angleton, Texas.
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Where
do giving circles keep their money?
Once the money from each giving circle member has been donated,
circles need to decide where to store or invest the money until
they are ready to make grants. Smaller circles may simply ask each
member to write a separate check to the selected nonprofit, removing
the need to keep the money anywhere. Most, however, look for a financial
host that can hold the money and, ideally, provide tax benefits
to the donors. The organizations most often selected to hold giving
circle money are community foundations. However, women’s funds,
other philanthropic organizations, and nonprofit organizations can
all provide this function.
Relationships
between giving circles and institutional hosts can range from minimal
(where the host simply holds the money) to involved (where the host
may provide administrative or staffing services).
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What
kinds of organizations
do giving circles support?
Giving
circles have a wide range of interests and passions and support
a variety of issues, with the top being youth development (34%),
women and girls (27%), human services (25%) and mental health/crisis
intervention (20%). These numbers differ somewhat from foundation
giving trends.
How
much money does each donor need to contribute to be part of a giving
circle?
One of the beautiful things about giving circles is that each can
establish its own financial commitment level that is right for its
members. So, while some circles may have a fairly low contribution
rate ($150-$500 per year), others may choose to set a higher financial
threshold ($5,000-$20,000 per year). Many circles ask that each
member give the same amount. However, others set tiered levels of
giving or have a “give what you can” philosophy.
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Do
giving circles encourage their members to volunteer in addition
to giving money?
This study found that circle members offer a range of additional
support to nonprofit organizations, with 51% of respondents indicating
that the circle’s members participate in organized volunteer
activities, while an additional 45% report board-level involvement
in grantee organizations, and 43% providing fundraising support
such as introducing the organization to other donors. Circle founders
interviewed assert that participants give additional money to the
nonprofits to which they are introduced; close to 70% of the respondents
indicated that their members give additional money directly to the
nonprofit organizations that the circle funds.
What
does it take to start a giving circle?
Other
than motivation, commitment, and an interest in philanthropy, you
need very little to start a giving circle. The Giving Circle Knowledge
Center
(www.givingforum.org)
is full of information to answer this very question. See the Giving
Circle Starter Kit for some basic steps to starting your own giving
circle. You will find more detailed information in the Resources
for Starting and Maintaining a Giving Circle section.
Source: Forum of Regional Associations of Grantmakers
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