My last post was about giving circles from a donor's point of view. The gifting vehicle allows individuals to come together as a group, pool their resources, and leverage it for a greater impact in the cause or project they choose. In this post, we look at giving circles from the organization's point of view. While there are apparent issues from the organization's viewpoint, I still believe that giving circles are powerful philanthropy vehicles for those that are new to philanthropy.
A recent study, Giving Circles and Fundraising in the New Philanthropy Environment, found that giving circles have much to offer nonprofits but there are challenges as well.
The report was based on interviews with 17 staff members from nonprofits that had received funding from giving circles. Generally, recipients felt that giving circles added value to the relationship by bringing visibility, connections, volunteers and funding. However, it was noted that members of giving circles were not always consistent about their expectations and nonprofits could not rely on them long-term sustainable support due to priority and membership changes.
Here are the key findings from the study:
~ In almost every case involved in the study, the giving circle sought out the charity. In most instances, someone in the giving circle already knew about the organization (and sometimes knew someone at the charity) and proposed that the circle fund the charity.
~ Because the giving-circle relationship is often new, fundraisers should expect to spend a significant amount of time on developing it. A fundraiser must be able to adjust quickly to a variety of different personalities within the giving circle. In addition, some participants described some giving-circle funding as “too directive,” with members constantly wanting to get involved in different aspects of the charity.
~ Several participants noted that for more formal giving circles sponsored or associated with a host foundation or other organization, there was often a mismatch between the host’s priorities and application process and those of the giving circle.
~ It can be difficult to count on giving-circle funding from year to year, since a circle’s priorities can change quickly depending upon membership and personalities.
The report was developed by Angela M. Eikenberry, Ph.D., an assistant professor at the Center for Public Administration and Policy, School of Public and International Affairs, Virginia Polytechnic Institute and State University. The research was funded by the AFP (Association of Fundraising Professionals) Foundation for Philanthropy.
