What is a Giving Circle?
"Giving circles" are a growing trend in philanthropy that encourages a group of people-often friends, neighbors, or coworkers-gather around a common cause. They pool their charitable dollars and volunteer together so they can have more impact.

How to Start a Giving Circle
Giving circles usually start as informal groups of colleagues or friends who share an interest in a cause, such as education or the environment. They want to deepen their understanding of the issue and pool their resources-money, time, and know-how-to be a stronger force.

The Baltimore Giving Project and the Giving Network suggest these six steps for creating a giving circle:

1. Define your goals and structure. Decide how often the group will meet, whether there is a limit on the number of participants, how to determine the funding focus, and the size or range of each member's financial contribution. It often works best when each member has an equal vote on where the money goes; if everyone contributes equally, this should not be a problem.

2. Decide where to place your collective dollars. The group can open a joint bank account-get professional advice about the tax implications-or partner with an organization that can act as a financial administrator for the money. Another option is to establish a donor-advised fund at a community or public foundation.

3. Find your focus. Try to be specific-if it's women's health, for example, try to narrow down your interest to a particular age, demographic group, or health concern. Invite experts in the field to present information sessions. Also, assign members of the circle to investigate issues and determine what local charities are doing the best work in your field of interest.

4. Create criteria for deciding who will get contributions. A traditional approach is to ask for written applications from charities. Or you could visit organizations that are potential grant recipients to see them in action. Also, decide on final evaluation criteria-such as a report at the end of the project-so you can measure your giving circle's impact.

5. Define what kind of partnership you want with your recipients. Do your giving-circle members want to volunteer for the organizations? Can you offer expertise, such as legal work or financial advice?

6. Discuss grantees and make your donation. The giving circle should allow lots of time to discuss the pros and cons of different nonprofit groups, trying to reach full consensus on which organizations to fund. Following the decision, tell the recipient your good news and inform organizations that won't be funded this round.

>> Read the latest report from the Baltmore Giving Project, "Growing Philanthropy Through Giving Circles: Lessons Learned from Start-Up to Grantmaking"(published November 2003).

>>Request a Giving Circle Starter Kit from the Giving Networ or visit the online Giving Circles Knowledge Center hosted by the Forum of Regional Associations of Grantmakers.