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Giving Circles: Community Builders and Hubs of Philanthropy


When we first began discussing giving circles in class, I was skeptical of their implications for philanthropy.  The work I had done to understand giving circles demonstrated to me that they take away from individuality.  In my initial definition of philanthropy, individuality was paramount.  I believed that in order to be a good philanthropist a person had to choose to support an organization they connected with, and that the best way to do this was alone.  After reading more literature on the topic, my feelings towards giving circles began to change.  I now believe that the structure of these giving circles offers a lot more to a community than funding.  Giving circles have the potential to benefit communities by bolstering enthusiasm for civic engagement, allowing people of various income levels to participate, and by encouraging the support of local nonprofit organizations.

A key feature of giving circles that began to change how I saw them was the fact that they offer a variety of benefits to communities and nonprofit organizations as a whole.  Giving circles enable people to sit with people in their local area and talk about challenges their community is facing.  This function as a means of getting a community together to discuss current issues helps to build a sense of connection and responsibility for citizens.  This benefits a community by building relationships between its members and by encouraging the sharing of ideas and motives.  It also works to increase the passion for civic engagement felt by a community because of the provision of a place where groups can examine local problems.  Another opportunity offered by giving circles is the ability of people with low disposable incomes to make change with the pooling of money.  Not all citizens have the financial ability to donate hundreds of dollars to organizations.  Since giving circles allow their members to collect money towards a certain goal, philanthropy is extended to people with low incomes.  An article I read from Charity Village details a small giving circle composed of girls ages 8-13.  This group, 100 Girls Victoria, enables young citizens to give to their community.  The girls involved are not donating huge sums of money each week, but they are still impacting their community by giving and by increasing their knowledge and passion for philanthropy.  This example also demonstrates how giving circles function as positive introductions to philanthropy as a whole.

The final aspect of giving circles that led to my opinion changing is the fact that they tend to promote grassroots organizations.  Through our work in class this semester, we have seen how difficult it is for smaller organizations to receive funding and to really get off the ground and start succeeding.  Since giving circles support local donations, they often lead to the supporting of small organizations.  This works to both diversify the spread of nonprofit organizations and to also give grassroots organizations a foothold in a community.  Overall, giving circles are a positive contribution to society.  Their ability to increase philanthropic enthusiasm amongst average citizens make them invaluable to the nonprofit sector.  To conclude, I would like to offer the readers a few questions I reflected on while writing this blog post.  What does philanthropy mean to you?  Is a democratic system the best way to make monetary decisions?  Lastly, how do you view your experience in our class in regard to its shared characteristics with giving circles?

Below are the articles used to better my comprehension of giving circles:

https://charityvillage.com/cms/content/topic/grassroots_giving_goes_mainstream_popular_giving_circles_are_sweeping_across_the_country#.XKDTD-tKhmB

https://www.opendemocracy.net/en/transformation/could-giving-circles-rebuild-philanthropy-from-bottom-up/



Comments

  1. Hi Julia,

    I wrote my essay last week on giving circles, and I think that your post very accurately describes some of their benefits. Giving circles are a great entry point for those who are new to philanthropy and unsure where to start. By collaborating with other people interested in philanthropy, we can learn from each other, just like we do through our class debates. It is also important that giving circles allow people to pool their money together, because money is closely related to influence (not just in philanthropy).

    To answer your questions, for me, philanthropy is the money, time, and effort that people use to attempt to make the world a better place. Philanthropy is one of the best parts of humanity, because it revolves around helping others, selfless acts, promoting the greater good, and most importantly, compassion. This class has put philanthropy on my mind more than ever before, and with that comes increased empathy for people not as fortunate as me that charities help. Philanthropy is something that everyone should participate in, because it really has no downsides.

    I believe that a democratic system results in the smartest monetary decisions, but not necessarily the most efficient ones. By this, I mean that democracy requires some level of consensus, which often takes time to reach. Comparatively, an individual donor can decide exactly which charity and how much money to donate very quickly. However, debate and discussion gives people the chance to learn, become better thinkers, and requires well thought out solutions for a consensus to be reached. I think that our class is very similar to any other giving circle, except that we emphasize the learning part because this is college. Like you mentioned, it is beneficial to our local community that we must award our grant to a Broome County organization. In addition, it's almost necessary that this be the case, or else we would have a never ending list of local, domestic, and international organizations to choose from.


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  2. Julia:
    I really enjoyed reading your blog post. In a way, I would call our class a giving circle as we have about 30 different people representing a multitude of interests, each contributing towards a common goal.

    To answer your questions, to me, philanthropy used to be something I too thought was a more individual act, however as I read your piece I now think that philanthropy is just as meaningful and effective regardless of who or how many people it’s from. I believe that a democratic system is the best way to make decisions as everyone has an equal say regarding where the funding goes. Our class is very much a giving circle in the sense that we vote on the charity we like the best out of the week’s pitches, and we each contribute at least a dollar to that week’s chosen organization. The effort is highly collaborative. Something you mentioned is that the giving circles examine local problems, which is exactly what we are doing when we discuss our finalists. Addressing local problems helps nurture a sense of community and is a key component of philanthropy in my opinion.

    Chloe

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  3. Hi Julia,

    I found you post to be very interesting and it also served to educate me about an area of philanthropy I was pretty unfamiliar with. Besides from the brief class discussion, I had never heard of giving circles or anything similar to them. To me, they seem like a good idea, that has the potential to increase overall philanthropy. I do agree with you that there is a certain level of individuality that is important to philanthropy. However, I do not think that individuality needs to be the end all in terms of philanthropy. I think that giving circles are another arena for philanthropy that can be just as important as individual giving. One of the biggest problems for me is that I think too many people, I was one of them before taking our class, decide not to donate because they cannot give large sums of money. I think that platforms like giving circles and crowdfunding websites offer the everyday person a chance to be philanthropic and be able to donate to a cause they like. I think that giving circles are just another avenue that can further expand philanthropy around the world. I believe that giving circles offer a unique opportunity for philanthropy to encompass a broader sense of ideas, that can foster a positive impact within communities. Giving circles also offer a great an innovative way for young people, like you mentioned, to get involved in philanthropy and hopefully grow and sustain their interest in donating to when they become adults.

    In regards to your question about whether or not a democratic system is the best way to donate money, I have a conflicted answer. In some regards, I believe a democratic system is the best because it offers a plethora of viewpoints on an issue, and thus a very informed decision can be made about donating money. A democratic systems offers many people a chance to have their voices heard, and to advocate for a variety of issues. In theory this would seem like the best way to donate money. However, I also feel it is important to have individualized systems for giving too, because I think that people should be able to have their own individual feelings and the freedom to decide where they want to donate their money. I believe that people should feel strongly about certain causes and be able to donate if they feel inclined to do so. I also believe that a very important part of philanthropy is the emotion and personal side attached to donating money. I think it is the emotion associated with donations, that also inspires people to donate money throughout their lives. In the end, I think that a balance between the two systems will yield the most effective philanthropic system. I think it is important to balance the two systems in order to gain the positives from both, like a broad range of ideas, but also the emotional aspect of individual giving.

    Matt Rozansky

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  4. Francesca SpinelliApril 2, 2019 at 10:52 PM

    Hi Julia,

    Similar to Matt, I had very little knowledge of giving circles prior to our class discussion. Personally, I think giving circles are a great source of philanthropy. While they may take away certain aspects of individuality in some eyes, they do allow all individuals to be philanthropists no matter the contribution size. I think that this sense of inclusion is important. As you noted, giving circles focus on the community at large. I think it speaks volumes that these groups care enough about their community to come together and decipher where changes should be made on a completely voluntary basis. These groups showcase the power we ordinary people have to make an immediate impact on the world around us when we act as a united front.

    Further along these lines, I do believe that a democratic system is the best way to make monetary decisions, specifically when the contributions come from a variety of individuals. As I mentioned, when a group of people are capable of collaborating and working towards a common goal, more things are bound to be accomplished than if a one-man-band were to take on the task alone. I firmly believe that passion is a driving force behind philanthropy. That being said, it is important that a vast majority of people are represented or heard when making group contributions in order to maximize the potential offering or impact. Democratic systems allow for the most amount of people to be satisfied in a given group thus fueling this passion in most cases. In regards to our class, I believe a democratic system is an extremely effective means of monetary decision making. I think that one of the reasons we have been so successful with our charity pitches this semester is due to the democratic system we have in place. I think that if we all did not have an input it would be harder to get individuals in the class to donate to the charity pool each week because people would begin to feel more disconnected from the process since they would have no real input as to where the money would be going. The use of a democratic system allows each voice in the class to be heard and makes each of us feel a bit more represented in the final decision thus motivating each of us to give.

    -Francesca Spinelli

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  5. Hi Julia,

    I really appreciated your blog post. I've also been skeptical of giving circles, because my preconceived notion is one of a handful of rich people taking a back seat when it comes to their philanthropy. The examples you gave really shifted my perspective. In particular, I really connected with "100 Girls Victoria", as I love the idea of individuals with lesser means joining together to make a larger impact. I know it's a gross exaggeration, but I always think about how if every individual in the world gave just one cent, we would have 77 million dollars. There really is power in numbers, especially when it comes to philanthropy.

    Thank you for asking questions, as I feel that really helps build the dialogue on this platform. In response, I would say that, to me, philanthropy means lifting others up. Whether it be in giving time, money, or care, I believe that everyone, regardless of individual means, has the ability to improve the lives of others.

    Now comes the issue of decision making. Clearly, our class represents a form of a giving circle centered on a democratic system. Although the money is not necessarily from our own pockets, we do share the power and responsibility to make decisions as to where our money should go. We have frequently discussed the difficulties of a democratic system of giving. While I wouldn't argue that this system is the best way to make philanthropic decisions, I would say it's effective. In joining a democracy, we accept the fact that we won't always be completely satisfied with the choice that is being made-- this is simply the curse of majority rules.

    I would say that it is clear that a democratic system is the best form of decision making for our class. In smaller groups, this is the most effective method. However, I would certainly argue that this is not always the best when taken to a larger scale. Smaller giving circles making decisions in this way is really powerful. Yet I would argue that a large giving circle begins to eliminate the variety and individuality of giving. A group of like-minded individuals in a group is ideal; forcing many into one decision is when this becomes harmful to philanthropy as a whole. For example, it wouldn't necessarily be helpful for the entire population of New York to make a decision regarding what philanthropy to give to. (While this could be an argument on taxes and voting for policy makers, I am going to avoid this area of the argument for the sake of clarity.) By taking a large, diverse group and forcing them into one decision, we eliminate the variety in philanthropy. As a class, even though we will only give our large grants to two organizations, our charity pitches celebrate the diversity in giving. There are countless worthy organizations in the philanthropy sector, so I find it important to allow for diverse giving. I'm proud of the work we are doing in class, and I believe it represents the best parts of giving circles. Thank you for your commentary Julia, and I hope my response helps to further your thinking on giving circles and philanthropy as a whole.

    - Becca Marcus

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  6. Hi Julia,

    I agree with everything you’ve written. Giving circles are a great way for a community to unite and incite positive change. The barrier for entry is often low. Anyone can join and add to the group by providing funds, manhours, or raising interesting points that can move the group forward in debates concerning what should be supported and how it should be supported. All of this allows for a very inclusive system that has the potential for great good. One point which you brought up that I wish to build upon is the diversification giving circles cause in philanthropy.

    There are many problems in the world that need tackling. Often the problems that big philanthropy tackles are the more prominent ones (e.g. cancer, world hunger, poverty, etc.). Meaning that the smaller issues (e.g. failing local schools, litter, local substance abuse) are overlooked. Giving circles provide a great avenue, as you’ve written, for these ignored issues to be taken on by a community of concerned and active individuals. However, doing so means diverging possible charitable funds and attention away from these bigger issues. At first, I wondered if this was a good thing or not, until I approached it from an economics perspective. Economists believe that the most efficient result will be reached when specialization is reached. Specialization means that you’ve pooled each of your workers and resources towards the area that they make the most impact in. Giving circles allows for this specialization since everyday people now have a way to band together and tackle problems that they have the most passion towards solving or knowledge on.

    Now I wish to answer some of your questions. To me philanthropy means humanity reaching its full potential. Humans are capable of lifting one another without need for reward. They are capable to look past whatever personal cost helping would entail. Philanthropy makes these capabilities a reality. As a philanthropist you give whatever you can and only hope that the action of giving will solve the problems of another person who is suffering, not that you will receive a prize. When I took intro to world politics we spoke about the different forms of government. We found that the most efficient form of government was democracy. Democracy ensured that people would be treated equally, have their opinions heard, and for decisions which reflected the collective thinking of a population to be reached. Giving circles do all of this. Everyone’s opinion in a giving circle is valid and respected. Very rarely is one member above the other. And the decisions reached by the group are decisions that have been impacted in some way, shape, or form by each and every member. I feel as though, our experience in class is such a great reflection of a giving circle. I feel at peace, and so do my other classmates, with sharing my views. I enjoy that we decide, instead of having a single person make the decision, on how we want to help our community. From what I’ve read, and we’ve discussed, this is what it feels like to be apart of a giving circle.

    - Anthony Zavala

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  7. Hey Julia,

    The concept of giving circles seems like an amazing way for communities and those that are not millionaires to make a difference in their community. Considering that not everyone has either the funds to make sizable donations to nonprofits or the knowledge to make informed decisions, these giving circles are allowing individuals the opportunity to do both. This form of philanthropy will be especially beneficial in low-income communities to give to local nonprofits that are more in need of any kind of funds big or small as opposed to large nonprofits where small donations would not make a dent. Giving circles can provide a mutually beneficial relationship between the community and local non profits. The discussion this opens up for community members will allow them to discuss what are important issues that need to be addressed and then pool their money to help fund nonprofits that deal with those issues.

    As many others that have commented on your post pointed out, this class itself is a kind of giving circle. I believe we have actively take advantage of the benefits that giving circles provide. We have discussed how to more effectively participate in philanthropy and figure out pressing issues within the Broome community. Our finalists that we have chosen are reflective of those issues. ACA is answering the needs of a county with a dwindling population by making it a more accepting and opening community to immigrants and any others hoping to move here. While also being a timely solution to the recent rise in hate crimes and active disrespect of immigrant communities by certain politicians. STAP and Truth Pharm respond to the increasingly deadly opioid epidemic that has been ravaging the southern tier of NY. Meals on Wheels answers the needs of the large elderly population that inhabits most of Broome county. HCA looks to answer the needs of the developmentally disabled whose government programs have seen a large decrease in funding within recent years. The fact that these are our finalists show the effectiveness of giving circles and the opportunity for good that they provide.

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  8. Hi Julia,

    This was a really thought provoking post. When we began class, I saw philanthropy as something that I was definitely interested in, but not something I would have an opportunity to be a part of any time soon. It seemed that making a difference monetarily was reserved for billionaires and the foundations they founded. Although it is obviously rewarding to give your time to something you are passionate about, it may feel futile or unimportant when you compare yourself to the mega philanthropists that garner mainstream publicity. When I learned more about giving circles through these readings and our class, what we were doing began to make so much more sense. Giving circles seem like a great way to get your feet wet in philanthropy when you do not have the means to give immense donations. A positive experience with a giving circle could create a lifelong philanthropist. Although the sum of money you are giving away is generally only partially your own, or sometimes just money from an outside source such as in our course, you can still feel like you have significant say in making a decision. For the most part, a democratic-esque giving circle has been a wonderful component of our class. As far as I can tell, everyone feels that their voice can be heard and it is really exciting to be part of something bigger than yourself.

    In doing a little more research on giving circles, I had a difficult time finding any articles which discussed limitations or flaws in giving circles. However, there were a few potential issues that came to mind that could complicate giving circles. Although we are obviously students from all different backgrounds, for the most part, we have a great number of shared values. We all are concerned with picking an organization which will do the most good in the greater Binghamton area, which has made our task of narrowing down organizations much more manageable than if we had a larger area to choose from. Additionally, we are all students attending the same university and pursuing Bachelor's degrees. Factors such as these make us prone to agreement on a number of issues which can make our decision making process much easier. How do giving circles function when the participants are vastly different in terms of values and priorities? Is it possible to have an effective giving circle if it is filled with many clashing personalities? All of our classmates have been very respectful of each others opinions during class and many have tried to look at charities and issues through new angles. This could prove to be a more difficult situation if our class did not share many similar values.

    -Mary Kate

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