MCF - What Is A Giving Circle

Minnesota Council on Foundations Donor Resources

•	Donor Glossary
•	Giving Memo E-Newsletter
•	Minnesota Toolkit for Giving
•	Donor Bill Of Rights
•	Giving Forum Newsletter

What Is A Giving Circle?

A giving circle is, in general terms, a group of donors who place their charitable dollars into a pooled fund, and decide as a group which charities to support. Giving circle donors often commit to participation for several years at an established dollar level, and the funds are typically donated to nonprofits chosen by the entire group.

Giving circles vary in structure, size and charitable focus. Some giving circles are very informal, nothing more than a group of friends with a bank account who meet in each others' homes to discuss and decide on where their funds will go. Other giving circles have hundreds of members and governing boards, and may use a community foundation to manage the financial aspects of their giving.

Some giving circles offer members an option to designate part of their annual dues to nonprofits of their own choosing (this can be done anonymously), with the remainder going into a fund for joint decision-making. Many giving circles offer their members a chance to work on grantmaking committees and evaluate nonprofits firsthand via site visits and other volunteer activities. And often, giving circles provide a venue for discussion of broader issues related to philanthropy, such as financial planning.

Operating a giving circle may involve significant legal and tax issues. It is important that you consult with a professional advisor for further information and guidance before forming a giving circle.

• More information at the Minnesota Toolkit for Giving