Arkansans, known for their philanthropic spirit, are exploring a different way to give back to their communities through “giving circles,” a unique concept being promoted by the Clinton School’s Center on Community Philanthropy.
The Hot Springs Giving Circle is one of the oldest circles in the state. Dorothy Morris, co-founder of the group and president of Morris Foundation, Inc., said it was created as an outlet to “give the way we wanted.” Since its inception in 2008, the 13-member group, which members sometimes call a “social investment club,” has given nearly $330,000 to an array of local and state initiatives.
A few years ago, giving circles started drawing national attention as a philanthropic phenomenon. As more and more individuals, who wanted to take on increasingly active roles in their communities, started connecting with one another to maximize their collective impact, circles began popping up around the country.
The trend gained traction, particularly during the bleakest moments of the economic downturn, and continues to have an increasing momentum.
“Part of a tried and tested philanthropic model, giving circles are numerous with up to 800 across America. They collectively grant about $100 million a year,” reported the Washington Post last December.
Most studies on these groups indicate that there are a consistently growing number of them. However, all researchers agree that the composition of individual circles tends to vary dramatically.
With members of all ages, backgrounds and socioeconomic standings, giving circles can range from informal to professionally-managed and may be organized by small groups of friends or structured in chapters across regions.
Some circles meet often to donate what they can or volunteer together, while others meet quarterly to distribute grants created from their high-dollar dues. Despite their diversity, “giving circles share one powerful idea: that through collaboration and action-based learning, donors can do more with less, enhance their giving and create measurable impact,” according to the Washington Post.
The national trends are consistent with the collective action occurring here in Arkansas as well. Three years ago, the Center on Community Philanthropy joined forces with the Arkansas Women’s Foundation to host a seminar called, “Giving Circles: Using Our Collective Power For Strategic Impact” to teach participants about the potential influence behind collaborative giving.
Now, giving circles can be found across the state. Some of these circles have specific areas of interest that they fund, such as children’s services or campus improvement. Still, others take a broader approach to their giving by learning about an assortment of initiatives and deliberating over which projects to support.
“Donors in giving circles give more, give more strategically, and are more engaged in their communities,” according to a national study titled, The Impact of Giving Together.
In an interview with NPR, Dr. Angela Eikenberry, who co-authored the study, said, “Those who join tend to be reacting against an increasingly bureaucratic world of fundraising… Giving circles are very appealing in that context because they enable people to get together, socialize with people, but still do good.”
In the case of the Hot Springs Giving Circle, members meet on a flexible schedule to listen to proposals before they give out their grants.
“Usually the members can’t wait for the next meeting,” Morris said. “Everyone is a committed philanthropist, the group is quite congenial and has never really disagreed about what to fund, and there are professionals [at the local community foundation affiliate] managing the money. It couldn’t be easier and we really enjoy it!”
Recipients of giving circle funds are incredibly grateful for this source of support too, especially with the availability of charitable funds linked to a volatile economy.
In a letter of appreciation, Todd Cranson, executive/artistic director of the Hot Springs Music Festival wrote, “All of the tools provided by your generous gift continue to improve our artistic potency and administrative efficiency … Also, our successful use of technology in performance and in our digital library have led to additional technology grants that may not have been possible if not for the start provided by the Hot Springs Giving Circle.”
This growing model for giving is proving to be quite effective, both in terms of engaging donors and meeting the needs of recipients. Moreover, these circles continue to function as a constant in communities in Arkansas.
“By remaining flexible and attuned to the goals of each Circle member while providing a platform for community needs to be addressed, the Hot Springs Giving Circle continues as a stable presence that can be mobilized quickly to focus funding for maximum impact,” according to a recent Morris Foundation report.
*This article was written by Sierra Fowler, Community Philanthropy Leadership Fellow.