TL;DR
- Giving Circles are groups of people who pool their money, learn together, and decide as a group where to give. Nearly 4,000 groups moved more than $3.1 billion between 2017 and 2023. [1]
- Circles connect you with donors you’re probably not reaching today, and those donors arrive informed and invested.
- To work with existing circles, be findable, be pitch-ready, and treat every member as a relationship.
- Starting your own circle can turn one-time donors into recurring givers through regular giving cycles, peer connection, and real ownership.
- Track circle-sourced relationships in your CRM so you can see what they’re worth over time.
Most fundraisers know the feeling. Donor counts are shrinking, acquisition costs keep climbing, and the same small group of loyal supporters is asked to carry more every year.
Meanwhile, a different trend has been growing right alongside it. More and more people are giving as a group.
Giving circles (also called collective giving groups) are one of the most promising sources of new donors and recurring dollars available to nonprofits right now. In this post, I’ll walk through how to work with circles that already exist, how to start one of your own, and how to track what that relationship is worth over the long run.
What are Giving Circles, and how fast are they growing?
Giving Circles are groups of people who pool their money, learn about issues together, and decide as a group where to give.
Communities have given this way for generations. The pace is what’s changed.
- The last major landscape study, published in 2017 by the Collective Giving Research Group, found roughly 1,600 groups with more than 150,000 members that had moved about $1.29 billion since they began. [1]
- The 2024 follow up from the Johnson Center for Philanthropy, Philanthropy Together, and Colmena Consulting, In Abundance, found that between 2017 and 2023, nearly 4,000 groups mobilized about 370,000 people to give more than $3.1 billion. [1]
- Based on those findings, the researchers say the movement is on track to double again within five years. [1]
Who is giving matters just as much as the totals. Group leaders reported a median member contribution of $500 a year. [1] These are everyday donors who, by pooling their gifts, make larger grants none of them could make alone.
Members also get something back. 91% reported a stronger sense of belonging to a community, and 55% said their group helped them live healthier lives, whether physically, mentally, or spiritually. [1]
So while much of the sector watches its donor pool shrink, Giving Circles are growing their number of engaged givers.
Why do Giving Circles matter for your nonprofit?
Giving Circles change how people relate to giving, in ways that pay off for nonprofits over years, well beyond a single grant.
They reach donors you may not be reaching
Many circle members experience giving in a structured way for the first time through their circle. They may be younger, earlier in their careers, or from communities institutional philanthropy has historically overlooked. 77% of groups report some members between 25 and 35. [1]
A circle grant can be your first introduction to people who would never have found you through a direct mail appeal.
They produce informed, invested supporters
Circle members may research issues, read proposals, hear from nonprofit leaders, and debate before they vote. By the time a circle funds you, its members often understand your work better than many of your existing donors do.
They build giving habits
Most circles give on a regular cycle. 52% meet once a year to make grant decisions, and 26% meet quarterly. [1] Members also stick around: the average length of membership is 7.5 years. [1]
The social side is what keeps people coming back. Giving alongside friends, colleagues, or neighbors is more fun than giving alone, and people show up for each other.
They often provide flexible funding
72% of groups offer general operating or unrestricted support. [1] Reporting requirements also tend to be much lighter than what institutional funders ask for.
How can your nonprofit work with Giving Circles that already exist?
There’s no single playbook, but nonprofits that do well with existing circles tend to follow a few consistent practices.
Make yourself findable
Most circles source nonprofits through member nominations, community foundations, local networks, and open calls for proposals.
- Ask your community foundation, United Way, or regional association of grantmakers who is running circles locally.
- Search Grapevine’s Global Giving Circle Directory for groups in your region and issue area to connect with.
- Make sure your website clearly explains what you do, who you serve, and what a gift accomplishes. Circle members will look you up before they vote.
Prepare for the pitch
Many circles invite shortlisted nonprofits to present, sometimes in just five or ten minutes. You’re speaking to a room of peers, not professional grantmakers.
- Drop the jargon.
- Lead with a story.
- Be specific about what the grant will fund.
The best presentations make members feel like they’re joining something rather than being solicited.
Treat every member as a relationship
This is where most nonprofits leave value on the table. A $10,000 grant from a circle of 50 people comes with 50 relationships attached.
Members already want to do more: 66% have given recipient organizations something beyond money, like volunteer time, expertise, or awareness. [1]
- Thank the circle.
- Invite them to a site visit.
- Share a specific update showing what their grant made possible.
- Give them an easy way to stay connected.
Each circle has its own expectations about member contact, so ask first.
Report back in a way that’s easy to share
Circle members talk to each other, and to their friends, about what their money did. Give them something worth passing along: a short impact story, a photo, or one or two clear outcomes.
How can your nonprofit start its own Giving Circle?
A circle hosted by your nonprofit can become a recurring giving program that your supporters actually want to be part of.
You wouldn’t be the first. In Abundance describes a whole category of groups created by nonprofits, alumni associations, and other existing organizations to fundraise and build community, and notes that many older “Friends Of” groups are becoming more community-focused. [1]
Why does a Giving Circle keep one-time donors coming back?
Three things do most of the work:
- Regular giving cycles. The commitment is built into the calendar, whether that’s $100 a quarter or one annual gift. Every cycle is a natural reason to reconnect.
- Giving alongside peers. 82% of members joined to build relationships with people who share their values. [1] People keep showing up for their friends.
- Real ownership. When members decide how funds are split across your programs or a partner cause, they feel like insiders. Insiders recruit their own networks.
The results show up in giving behavior. Since joining, 63% of members say they give more, and 60% say they give more often. [1]
Who should you invite first?
Start with people who already have a reason to gather:
- Monthly donors. They already have the giving habit. A circle adds to the community.
- Young professionals. They’re often looking for connection and a growing network, and 46% of members name network-building as a top benefit of joining. [1]
- Alumni. Program alumni, former volunteers, and past board members share a history with you and with each other.
Build a plan for growth that’s achievable and leverage being new and small in the early days to provide founding members with more access and ownership than they would have otherwise. 34% of circles have fewer than 25 members, a size that works well for relationship-building and shared decisions. [1]
What does it take to run a giving circle?
A circle takes real facilitation, so plan for it up front.
- Name a facilitator. One staff member or volunteer lead who owns the calendar, meetings, and communication.
- Decide what the group owns. Settle in advance which decisions members will make. Members notice quickly if the choices are symbolic.
- Set an accessible contribution level. Only 13% of groups use giving tiers, but tiers, flexible contribution limits, and sponsorships can help bring in younger and more diverse members. [1]
- Pick a cadence. Quarterly, semi-annual or annual all work well. Consistency matters more than frequency.
- Handle the logistics. You’ll need a way to collect contributions, run votes, and distribute funds. About 24% of groups use a technology platform, Grapevine. [1]
- Close the loop every cycle. Show members what their decision made possible before you ask them to give again.
How should you track Giving Circle donors in your CRM?
Many organizations underestimate this channel simply because they don’t record where a supporter first found them. Your CRM is where a circle grant turns into a relationship you can actually see.
Record where the relationship started
- Log the circle as its own source or campaign, with the grant amount and cycle date.
- With the circle’s permission, add individual members as contacts and link them to that circle.
- Keep circles you’re funded by separate from circles you host, since they grow in different ways.
In a nonprofit CRM like Virtuous CRM+, you can set the circle up as its own source, link each member’s record back to it, and see their first individual gift, volunteer shift, or referral show up alongside the original grant.
Watch how circle members become individual donors
This is where the long-term value shows up. 39% of members have made additional gifts to organizations their group funded. [1]
Track each member’s first individual gift, volunteer shift, event RSVP, and referral so you can see that path unfold.
Measure long-term value
- Compare retention and lifetime giving for circle-sourced donors against your other acquisition channels.
- For a circle you host, track how many members renew each cycle and how many upgrade their commitment.
- Report these numbers to leadership. It’s much easier to invest in a channel you can measure.
I often say that relationships are infrastructure. Good tracking is how you make sure that infrastructure keeps paying off.
What are the limits of Giving Circles as a fundraising strategy?
Giving Circles won’t replace your core fundraising strategy, and it’s worth being honest about why.
- Individual circle grants can be modest.
- Application cycles vary from circle to circle, and most rely on member nominations instead.
- A circle that funds you one year may choose someone else the next. Rotating grantees is a deliberate feature of many circles.
The value builds over time, through relationships, visibility, and a growing base of supporters who first met you through a circle.
Where Giving Circles fit in your long-term fundraising
Much of philanthropy is concentrating on fewer, larger gifts. Giving Circles are moving in the other direction, bringing more people into giving by making it social, participatory, and rooted in community.
For nonprofits, that means two opportunities. You can show up well for the circles that already exist, and you can start a circle of your own that turns one-time donors into a community that gives together, cycle after cycle.
The organizations that are findable, pitch-ready, and relationship-minded now, and that track what Giving Circles bring them, will be well positioned as this movement keeps growing.
FAQs
What does “Giving Circle” mean?
A Giving Circle is a group of people who pool their money, learn about issues together, and decide as a group where to give. They’re also called collective giving groups.
How much do Giving Circles give?
Nearly 4,000 U.S. groups moved more than $3.1 billion between 2017 and 2023. [1] Individual members typically give modest amounts, with a median of about $500 a year. [1]
How do nonprofits find Giving Circles?
Ask your community foundation, United Way, or regional association of grantmakers who runs circles locally, and search Grapevine’s Global Giving Circle Directory.
Can a nonprofit start its own Giving Circle?
Yes. Many nonprofits host circles for monthly donors, young professionals, or alumni, who decide together how to allocate funds across programs or a partner cause.
Why do Giving Circles help with donor retention?
Circles give on a regular cycle, members give alongside peers, and they have real ownership over decisions. Since joining, 63% of members say they give more. [1]
How should nonprofits track Giving Circle donors?
Record the circle as the relationship’s source in your CRM, track when members make individual gifts, and compare their retention and lifetime value to other channels.
Sources:
[1] Loson-Ceballos, A., & Layton, M. D. (2024). In Abundance: An Analysis of the Thriving Landscape of Collective Giving in the U.S. Dorothy A. Johnson Center for Philanthropy at Grand Valley State University, Colmena-Consulting, and Philanthropy Together.
