10 Steps To Starting A Giving Circle With Your Girlfriends
/If you love Money & Mimosas, then you love to make money and make a difference. You especially love doing both with girlfriends who share a similar vision. In this article, I’ll walk ten steps you can take to start a giving circle with your girlfriends. Grab your friends, pour some mimosas, and let’s dive in.
What is a giving circle?
A giving circle is a form of participatory philanthropy where groups of individuals donate their own money or time to a pooled fund, decide together where to give these away to charity or community projects and, in doing so, seek to increase their awareness of and engagement in the issues covered by the charity or community project. Many circles, in addition to donating their money, also contribute their time and skills to support local causes.
Step One: What is the vision?
After you’ve poured your mimosas, let’s start the meeting by setting a clear intention for the vision, mission, and goals of the giving circle.
What are the goals and objectives?
What is the mission statement?
What is the vision? How will your giving circle create the impact you all wish to see?
Step Two: What is the structure?
Now that you are all on the same page about the vision, it’s time to add structure to the giving circle by asking the following questions:
How many times will the group meet?
How will you determine the giving focus?
Where do we hold meetings?
Is there a limit on the number of participants?
What is the size or range of the financial contribution each member will make?
What is the time commitment?
What is the entity structure for the giving circle?
The financial contribution amount can vary - anywhere from $10 to $25,000 or more. As a group, you decide what is reasonable. Typically the giving amount is the same for everyone so that the potential of one vote counting more than another is eliminated.
Step Three: Where will the collective dollars be stored?
Usually giving circle members make their financial commitment at the beginning of the year. Unlike non-profits, giving circles do not have administrative “overhead”, because everyone is a volunteer. Therefore all the funds should be able to go directly to the cause(s). Here are some options for where to store the collective dollars:
Open a joint bank account. (Check with a professional advisor on the tax implications)
Partner with an organization that can act as a financial administrator of the funds.
Establish a Donor-Advised Fund
Create a public or community foundation.
Write individual checks to the chosen nonprofit/s.
Explore other creative options that interest the group.
Step Four: What is the focus?
This step may take another meeting. What is the main issue or cause that the circle wishes to make a positive impact on? Is it related to Black women, girls, financial education, the environment? You may wish to invite experts to educate the circle on different issues to help the circle create a very specific focus.
The more specific the better. Giving circles can tend to become less effective because of the admirable desire to try to fix everything. However, you will be more impactful if you choose a specific issue and stick with it for an extended period of time.
Step Five: Who does what?
To create efficiency, assign roles to each member of the giving circle. Some roles may include:
Researcher - one person is assigned to researching the issue and finding potential organizations to grant funds
Someone to take notes during the meetings and send a follow-up email
Someone to communicate and connect with potential organizations
In my experience, giving circles are best when there are ten or fewer women. As the circle grows, you may wish to break the group into pods of ten so that it remains efficient and effective.
Step Six: What is the funding philosophy?
It is critical to determine the criteria you all will use to decide which organization receives funding. Ideally, this is determined before you start evaluating the various options. Perhaps the circle asks for a written application from a charity. Or maybe they ask for data around the impact they’ve had in the local community. Here are some questions to help you get started:
How will you decide who receives funding?
Will you review grant applications?
Will you visit specific organizations that could “qualify”?
What kind of a report will you want at the end of the project period from the recipient of these funds?
This process can be simply choosing a recipient organization based on the information you gather or it can be more involved. Some circles review written applications, visit the organizations and ask for a presentation on the work the organization does.
If your group is unsure of how to assess an organization, you may want to consider asking someone with a background in grantmaking or nonprofit administration to give the group assistance.
Keep in mind, that non-profits are generally understaffed and short on time. Be mindful of how your vetting process may add a strain to their already tight resources. when adding more to their plate during the
Step Seven: What is the partnership with the recipient?
For some giving circles, the partnership is transactional in which the only exchange is money given to the non-profit. For others, it is a combination of money and time. The members of the circle need to decide if they wish to volunteer or offer some sort of assistance outside of the monetary donation. This assistance could be related to their expertise including web development, finances, program planning, legal work, etc.
Step Eight: How do you rate the potential recipients?
Some giving circles have a voting process or a scoring process for determining the grant recipient. Be sure to schedule plenty of time to discuss the potential grantees so that everyone has ample opportunity to voice their perspective.
Whichever method you take, remember that the circle is free to do whatever it chooses. Be willing to think outside of the traditional box by funding a start-up nonprofit, or by funding a nonprofit that may seem unconventional to traditional funders. By doing so you are breaking the white supremacist cycle of only putting money where folks feel “comfortable”.
Step Nine: How will you alert the recipient and non-recipients?
As soon as the circle makes a decision, it is time to alert the grant recipient. It is also in good taste to alert the organizations that did not receive funding.
Step Ten: How will you measure the circle’s impact?
On a regular basis, examine the short-term and long-term goals of the giving circle. This can include candid feedback from the organizations you have funded as to how the experience with the circle supported their efforts.
Some questions to ask the circle:
How will you measure your giving circle’s impact?
How will the organization/s that receives funding measure the impact of this funding?
With the final question, keep in mind that non-profits are generally understaffed and tight on resources. Be mindful if you ask for them to generate reports that cost them time and money to produce.
