Giving Circles

Yesterday, I had the opportunity to speak with a representative from an organization called Black Benefactors. This group is the grant-making arm of The Black Philanthropic Alliance. Slightly different than a typical foundation, Black Benefactors is a giving circle. In a challenging economic climate, I think giving circles have the potential to play a very important role in ensuring continued innovation in the nonprofit community.

First, let me briefly explain the way a giving circle works. Many people want to support nonprofits; however, they often feel that they can not give enough to make a significant impact. In a giving circle, like minded people pool their resources so they can make more substantial gifts to selected organizations. Last year, Black Benefactors was able to give away $10,000 by asking members to contribute a minimum of $250.

Currently, very few foundations are considering new organizations. While many organizations got their initial funding through a couple generous grants, this is no longer the reality. For that reason, I believe that giving circles have the ability to assume a unique position in the philanthropic community. Giving circles can ensure continued innovation and ensure impact by focusing on supporting the work of small start-up organizations. Through strategic thinking, giving circles can use their limited resources to make an even bigger impact.

Thanks, as always, for reading.

Mark