7 Questions to Guide Your Giving Circle

A recent article in the Washington Post’s On Giving section discusses giving circles, which now number roughly 800 in the US alone. If you’ve never heard of a giving circle before, think of it like a hybrid between individual and foundation giving. While the contributions made by giving circles come from individuals’ check books, the decision making, collaboration, and strategic oversight are made collectively by the group, making the fund disbursement more reminiscent of a structured-giving institution.

If you’re thinking of starting or joining a giving circle, consider these 7 questions from Laura Arrillaga-Andreessen, founder and chairman of SV2 (Silicon Valley Social Venture Fund) and Stanford Center on Philanthropy and Civil Society (PACS):

1. What should be the size or range of each member’s financial contribution and will members be asked to make year-long commitments?
2. What will the group’s funding focus be?
3. How will you give away the funds the group collects?
4. How will you deal with differing opinions?
5. How will you research the nonprofits you’re considering investing in and verify that gifts — particularly larger ones — will be used as the group intended?
6. What kind of feedback will the group ask beneficiaries to submit on how donations have been spent and what impact they have made?
7. Can new members join at any time, or can they only sign up, say, once or twice a year?

Have you had any experience with giving circles? What questions or issues would you add to this list?

Photo credit: nonprofitlawblog.com