It would make sense in this tight economy that new philanthropists would be hard to find, right? Wrong. In the greater Baltimore region a relatively new philanthropic vehicle called giving circles has attracted and engaged donors in the art of philanthropy.
Part of a new trend, which some are calling community-based philanthropy because you do not have to be rich to participate, a giving circle is a pooled fund, generally hosted or sponsored by a charitable organization such as a community foundation, through which members make grants together. Giving circles have strong appeal because they engage donors in a more enriching and rewarding philanthropic experience, plus they allow anyone to become a philanthropist.
A report published by the Association of Baltimore Area Grantmakers (ABAG) entitled “Growing Philanthropy through Giving Circles: Lessons Learned from Start-up to Grantmaking” explores and communicates the lessons learned from two giving circles initiated in Maryland, the Baltimore Women's Giving Circle at the Baltimore Community Foundation and the Women's Giving Circle of Howard County at the Columbia Foundation, Howard County's Community Foundation.
Giving circles are typically organized around a particular issue or area of interest, such as women's issues, quality of life, or the environment, and are considered a high engagement form of philanthropy because donors usually participate in collective decision making and educational activities. The circle's grantmaking functions, proposal review, and site visits engage members in a participatory process that, when combined with the increased impact of pooled charitable dollars, has strong appeal to many donors.
Fourteen giving circles have developed in the greater Baltimore region in the last several years and ABAG and its Baltimore Giving Project are assisting them from conception to growth in a variety of ways to ensure their success. “This is an exciting time for the field as we see this type of giving vehicle become increasingly popular” said Buffy Beaudoin-Schwartz, the report's co-author. “My hope is that through the use of this initial research, giving circles will continue to evolve and grow both in the greater Baltimore region and around the country.”
Giving circles have the potential to bring many new faces to philanthropy and to get donors excited about and connected to giving. The Baltimore Women's Giving Circle has 135 members, has collected $210,622 and has granted more than $152,554 to over 20 nonprofits in their first two years of operations. Through their individual contributions of $1,000, members of the BWGC have truly become philanthropists. Participants report that giving circles are rewarding on a number of levels, particularly their ability to convene diverse individuals as a powerful collective capable of effecting change. And, the educational component helps donors to better understand nonprofit organizations and community needs, resulting in more strategic, effective philanthropy.
“Philanthropy is changing—many donors are no longer satisfied with writing a check. They want an enriching experience and they want to make a difference. By joining with other like-minded individuals they can realize the power of their giving.” said Tracey Rutnik, the lead author of the report. “Given the tremendous impact that giving circles have had locally, we are excited to share with the field lessons learned and practical wisdom for starting and growing a successful giving circle. Over the long-term, giving circles appear to have the potential to build a stronger community of donors that is both larger and further engaged.”
“Growing Philanthropy through Giving Circles: Lessons Learned from Start-up to Grantmaking" is attached and also available as a downloadable PDF file at: www.abagmd.org. Print copies are available upon request by contacting ABAG at 410/727-1205 or bgp@abagmd.org.
