Giving circles may be the living embodiment of the old adage, “there is strength in numbers…”

Philanthropy takes many forms, but one of the most popular in recent years is the giving circle. In a giving circle, individuals with common interests pool their dollars to distribute resources to selected groups and social causes that align with their interests.

For many people, they offer an easy and convenient way to support the causes they care about. And while there are certainly some issues that need to be addressed, such as a lack of diversity or exclusivity in support, giving circles can be a powerful force for good in our communities.

By pooling resources, giving circles are able to make larger grants than most individual donors would be able to make on their own. Additionally, giving circles often have a focus on capacity-building, meaning that they not only provide much-needed financial support, but also work to empower the organizations and leaders they fund. In this way, giving circles play an important role in promoting social justice and equity by boosting infrastructure and sustainability.

Read more about historical context on ‘The Sweetness of Circles’

Black Americans have been increasingly charitable through giving circles over the last 40 years –however, pooling resources to help our community is not a new practice. History is full of examples of how African Americans used collective giving to finance social change and liberation.

Philanthropy has always been an important part of communities of color, and it continues to be so today. In many ways, black organizers of circles are carrying on a tradition of giving back that has been passed down through the generations.

‘African-Americans have been philanthropists from Day One’

2012 W.K. Kellogg Foundation study

2016 study by the Collective Giving Research Group

While giving circles can be a great way to support important causes, it’s important to note there are ways they can also be problematic.

Giving circles can often be socioeconomically imbalanced when it comes to members and which causes they choose to support. Instead of selecting organizations working specifically to assist marginalized groups and communities of color, money and resources available through private giving circles of extreme privilege often go to organizations that already have a considerable amount of notoriety and resources.

Despite these concerns, giving circles remain a popular form of philanthropy. It appears identity-based giving circles may shift the pitfalls of “philanthropy as usual.”

What sets these groups apart is the flexible democratic nature of their makeup. This allows them to be highly targeted in their giving, which can be a huge asset in addressing the needs of communities of color. By working together, black organizers of circles are making a powerful statement about the importance of philanthropy in our community.

Local Action

Traces of collective giving can be seen across the city of Birmingham, AL. A city deeply rooted and covered in the remnants of the civil rights movement should undoubtedly be a beacon of hope in building capacity through targeted philanthropy, just as it was during that era.

The Birmingham Change Fund is my local shoutout for today, simply for their strategic methods of distributing capital and using that to make sure they have a seat at the table in other larger philanthropic organizations.

 

Social Solutions Consulting is a a consulting group focused on developing stronger communities by building the capacity of community organizations through evaluation, technical assistance, and training.

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