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There are many ways to start a giving circle. These 10 steps can give you a starting point and a basic roadmap.
Step One - Set Goals and Structure
Bring your group together for a first meeting. Take time at this first meeting to discuss what a giving circle is. Begin the process of setting goals and structure now. Some of the decisions that you may want to discuss at this meeting are:
- How many times will the group meet?
- How will we determine our funding focus?
- Where do we hold meetings?
- Is there a limit on number of participants?
- What is the size or range of the financial contribution each member will make?
- What is the time commitment?
Remember: giving circles go beyond individual “pet” charities to pool your resources for a common goal with greater impact. Members will contribute time as well as dollars in the process.
Step Two – Establish Mission and Commitment
Once the group sets up regular meetings, it is a good idea to:
- Establish a mission
- Agree on common goals and objectives
- Name your group
- Set up an operating structure
Remember: The contribution amount can vary. Circles requirements vary – starting at $10 and going up to $25,000 or more. The group decides what is reasonable for their circle. It is important for the group to agree on the final amount.
Many circles choose one contribution level for everyone. Since no single vote on a potential grantee should outweigh another, many circles find this arrangement the best. Other circles find that a tiered giving structure or anonymous giving meets their needs.
Step Three – Decide Where to Place Your Collective Dollars
At the start of each year, members should make a financial commitment to the giving circle (i.e., write the check). There are options for where your circle members’ money can sit. There are benefits to all the options, depending on the circle’s needs, experience, and structure. Giving circles generally have no administrative “overhead.” Volunteers administer the circle and all dollars go to the designated nonprofit/s. However, some circles have found it useful to pay for administrative costs. They then receive a level of service that they cannot provide for themselves. You can:
- Open a joint bank account. (Check with a professional advisor on the tax implications)
- Partner with an organization that can act as a financial administrator of the funds.
- Establish a Donor Advised Fund at a Community or Public Foundation.
- Create a public foundation.
- Write individual checks to the chosen nonprofit/s.
- Explore other creative options that interest the group.
Step Four – Establish an Issue/Focus Area
This step may take significant discussion. Encourage the group to be as specific as possible. For example, if the group is interested in health issues for women – what specific health issues, age range or demographic? In what geographic area will you focus?
You may also want to invite “experts” to talk to the group. Some circles assign group members to investigate particular issues. Consensus is important when a giving circle decides on its focus area.
Step Five – Create Smaller Work Groups
Having members of the group volunteer for particular tasks will build personal commitment. Smaller groups make task members with different tasks.
Step Six – Develop Process and Criteria for Funding
You may decide to ask for written applications from a charity. Or, you may evaluate a group in another way. Some questions to consider as you determine your funding philosophy:
- How will we decide who receives funding?
- Will we review grant applications?
- Will we visit specific organizations that could “qualify”?
- What kind of a report will we want at the end of the project period from the recipient of these funds?
This process can be simply choosing a recipient organization based on information you gather. Or the process can be more involved. Some circles review written applications, visit the organizations and ask for a presentation on the work the organization does.
If your group is unsure of how to assess an organization, you may want to consider asking someone with a background in grant making or nonprofit administration to give the group assistance.
It is also important at this stage to establish final evaluation criteria. How will you measure your giving circle’s impact? How will the organization/s that receive funding measure the impact of this funding?
Note: Many circles try to match the level of effort they require from the grantee to the amount of money that they have to give. Nonprofits are often understaffed and short on time. It can be a burden for them to create lengthy proposals and reports for relatively small amounts of money.
Step Seven – Define Partnership with Recipient of Grant Award
Do members of your circle want to volunteer for an organization you have funded? Your circle should define in what ways they could offer assistance. Web development, finances, program planning, legal work, and mentoring are some examples of how your members might get involved. Be sure to be clear with the expectations of all involved in this new partnership.
Step Eight – Review Potential Recipients
Conducting site visits with potential grantees can be helpful in the grantmaking process. This is the time to ask questions, get clarification, and see the organization in action.
The group should set aside plenty of time to discuss the potential grantees. Members may feel strongly about funding different organizations. There needs to be time to go through this process to reach agreement.
Smaller giving circles often use a consensus model for decision-making. Larger circles tend to rely on committees and voting systems.
Be willing to take a risk by funding a start-up nonprofit, or by funding a nonprofit that may seem unconventional to traditional funders. Remember you are the “Board of Directors” and can set your own guidelines.
Step Nine – Make Grant Awards
Immediately following the group’s decision, alert the recipient and let them know when they can expect a check. It is good practice to let organizations who are not receiving funds from your circle know of your decision, too.
Step Ten – Evaluate Your Giving Circle
On a regular basis, examine the short term and long term goals of the giving circle. This will help develop a sense of satisfaction with the work you are doing and show how your contributions have made a difference. Try to determine what impact the group has had. Candid feedback from the organizations you have funded and partnered with will be an important ingredient of this process.
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A sample document detailing the core values of the Betty and Davis Fitzgerald Foundation including restrictions on participation on nonprofit/grantee boards.
An overview on the self-dealing law, including definitions, common problem areas, exceptions, penalties, and resources.
ASAE & The Center for Association Leadership's landmark study and publication 7 Measures of Success identified the ability to build effective alliances or partnerships that advance the mission as one of the hallmarks of a remarkable association. But getting a partnership right is an involved undertaking. That's what The Power of Partnership, itself the result of a strategic research collaboration of ASAE & The Center and the U.S. Chamber of Commerce, is all about. The book takes a no-nonsense look at the intricacies of establishing successful partnerships between nonprofit organizations, between nonprofits and for-profit companies, and between nonprofit organizations and governmental entities.
Sample board committee descriptions, including roles and responsibilities of committee members
CNJG Member survey ranking which issues are most important to them.
This includes insights and tips related to board governance, legal compliance, grantee communications, fiscal responsibility, public disclosure, and many other key areas of foundation governance and operations. It is intended to serve as a practical resource to assist foundations in their grantmaking.
This tool for unstaffed foundations includes an accountability self-assessment and a legal checklist. It is divided into nine topic sections, each of which is divided into three levels, which can help foundations tailor the tool to meet their specific interests and needs. Also included are an Excel spreadsheet to help tabulate responses, an extensive accountability resource list, and a glossary of key words and concepts used in the tool.
What does effectiveness mean to foundations? Explore definitions, challenges, and tips for evaluating foundation effectiveness.
Sample conflict of interest policy, as outlined by the Internal Revenue Service.
PolicyWorks for Philanthropy is a multi-year initiative that seeks to build the capacity of regional associations of grantmakers’ staff, board and volunteer leaders to engage policymakers. Our vision is that policymakers will recognize regional associations of grantmakers as among the most valued voices and expert resources on issues critical to philanthropy and society. There are 28 regional associations participating in this initiative.
Our commitment is based on the belief that:
- Policy work is essential to achieving our missions and helping our more than 3,000 foundation members
- As a network serving foundations in 39 states, the PolicyWorks community offers the best and only coordinated national system for building effective relationships with elected and appointed officials at all levels of government.
Building and maintaining relationships with policymakers is essential to the philanthropic sector
Building and maintaining relationships with policymakers is essential to the philanthropic sector’s ability to: educate policymakers about the work, value and impact of foundations; advise policymakers about potential legislation or regulation that could harm the sector and decrease much needed philanthropic dollars; gain policymakers’ support for legislation that could support the growth and effectiveness of philanthropy; and build partnerships with policymakers to achieve policy reforms that improve the quality of life for those foundations seek to serve.
For questions about PolicyWorks, please contact CNJG’s liaisons, Theresa Jacks and Policy Committee CoChair Bill Engel.
In 2003, with member support, CNJG commissioned a report on the impact a potential conversion of Horizon Blue Cross Blue Shield to a for-profit might have on access to health care in New Jersey. Research from the Center for State Health Policy (CSHP) at Rutgers University, provided details about the law governing such conversions in New Jersey and the experience of other states with conversions. The report identified questions raised in other states when such conversions occur, especially about the valuation of assets, the impact on low-income families, and the operation of the philanthropic foundations that have been established as stewards of the assets generated by the conversions. CNJG’s purpose was to seek answers to critical questions relevant to the availability of healthcare coverage for New Jersey’s citizens and to discuss models of best practice for healthcare conversion foundations across the United States.
Responding Post Sandy: Philanthropic Relief & Recovery
Superstorm Sandy officially came ashore in New Jersey on October 29, 2012 at 8:00 p.m. and its aftermath continues to be felt in communities throughout our state. Not 24 hours after the storm made landfall, CNJG began planning a series of actions to help inform funders what to be prepared for, share information and discuss strategies. CNJG's support of the philanthropic community as it navigates the shifting landscape of disaster recovery, continues.
CNJG has been working closely with their philanthropic members in New Jersey and their philanthropic colleagues from around the nation who have experience in disaster philanthropy, as well as working cooperatively with the Governor’s Office on Recovery, FEMA, NJ State Police Office of Emergency Management, NJ Voluntary Organizations Active in Disaster, NJ’s Long Term Recovery Group Leaders, and NJ’s leading nonprofit organizations.
Post Sandy Funder Briefings
Beginning one week after Sandy struck New Jersey CNJG launched a weekly conference call series for grantmakers to hear from policymakers, disaster relief/recovery experts and colleagues who have been through similar catastrophes. Grantmakers heard from nearly 70 guest speakers including policymakers, disaster relief and recovery experts, and statewide and national foundation leaders that have experienced similar catastrophes. The briefings provided an opportunity to connect directly with local leaders and state officials addressing the many needs of our communities. Grantmakers learned about issues related to both disasters in general and Sandy recovery in particular. Topics included housing, mental health, social justice, universal design, FEMA’s National Disaster Recovery Framework, and an array of environmental issues. All of the calls were recorded and also transcribed into concise written summaries and are available on our website.
Series 1 ran from November 2012 -- March 2013
Series 1 Audio Recordings
Series 1 Written Summaries
Series 2 ran from September 2013 -- November 2013
Series 2 Audio Recordings
Series 2 Written Summaries
Series 1 & 2 Written Compendium
Funders’ Briefing Post Sandy Recovery at 18 months
With support from the Jon Bon Jovi Soul Foundation and OceanFirst Foundation, CNJG presented a specific briefing on housing, hunger and mental health recovery efforts and needs 18 months after the storm. We heard personal stories from families that were displaced and their long struggle to rebuild and recoup. We heard insights from service providers on the long term effects of Sandy. Several Long Term Recovery Groups described some of their ongoing challenges, but also shared what was working.
CNJG’s response to Superstorm Sandy also included
Coastal Communities Site Visit Tours
CNJG offered its members a rare opportunity to tour several of the disaster-affected communities in Monmouth and Ocean Counties and to hear from those on-the-ground. Throughout the day, twelve guest speakers representing all areas of the effort, including individuals from FEMA, local and state government, Long Term Recovery Group leaders, city and state planners, environmental professionals, social services personnel, and faith-based leaders, among others spoke to a group of 60 philanthropic leaders. Building upon the first successful Coastal Communities Site Visit Tour, CNJG offered a similar program focusing on communities in northern New Jersey – specifically the hard hit areas in Essex, Hudson and Bergen Counties. In addition to hearing from a wide range of local officials, Long Term Recovery Group Leaders, urban planners, and environmental experts, the site visit included a tour of a PSEG sub-power station which was flooded.
Statewide Conference
Bringing together an incredible community of funders, providers and practitioners for a day of exploration, shared learning and discussion at the Spring 2013 Conference for the Social Sector - Our Shared Road Ahead: Sandy and Beyond on June 10. The Conference provided participants with an important opportunity to hear about the lessons learned by social sector colleagues and experts around the country who have grappled with how to create effective long-term philanthropic responses to catastrophic events in the absence of a readily available guide.
Superstorm Sandy Philanthropic Investments Scan
Philanthropy & Hurricane Sandy: A Report on the Foundation & Corporate Response is a report released in October 2014 by CNJG and partners that examines the response of foundations, corporations, and other institutional donors to the devastation wrought by Hurricane Sandy in October 2012. Numbering nearly 600, these funders have so far committed more than $380 million for relief, recovery and building efforts. The hard data and reflective observations in the report contribute to the growing body of knowledge that helps foundations and corporations be strategic and effective with their giving when disaster strikes.
Two years after the historic storm, this report breaks down the allocation of dollars contributed thus far and offers perspective on the role of private giving in disaster response and lessons to be taken from this one. The report was published by the Foundation Center in partnership with the Council of New Jersey Grantmakers and Philanthropy New York, and with support from the Center for Disaster Philanthropy.
Special thanks to our philanthropic partners that have supported various aspects of the Council’s work beginning immediately after Hurricane Sandy struck through our ongoing work today, including: the Center for Disaster Philanthropy, Citi, Fund for New Jersey, The Henry & Marilyn Taub Foundation, The Horizon Foundation for New Jersey, Hurricane Sandy New Jersey Relief Fund, JCP&L, JPMorgan Chase, Jon Bon Jovi Soul Foundation, The Merck Company Foundation/Merck & Company, Inc., PSEG Foundation, Provident Bank Foundation, Rita Allen Foundation, Subaru, TD Bank, United Way of Essex and West Hudson, Verizon NJ, and the Victoria Foundation.
The only statewide study ever published on giving, CNJGs New Jersey Gives report provides a status report on the strength of charitable giving in New Jersey and its influence on the state's economy. First published in 2001 with an updates produced in 2003 and 2005 New Jersey Gives features key statistics on corporate and community foundations, individual giving and more.
Facing Our Future was a landmark initiative looking at the systemic, long term fiscal challenges facing all levels of government in New Jersey. It grew out of a 2010 briefing CNJG held for members that outlined how a Governor’s budget is annually crafted. CNJG leadership worked with members to convene a group of enthusiastic former government leaders. Their collective experience crossed party lines, and many of them had served multiple New Jersey governors. This Leadership Group included 4 former Attorney Generals, 3, former Commissioners, 2 former State Treasurers, a former Director of the State Senate and a former Chief Justice of the NJ Supreme Court, in addition to leading New Jersey researchers.
Facing Our Future became an independent, bipartisan effort under the auspices of CNJG. It has produced 3 different reports that centered on the same theme.
In 2007, CNJG brought together the state's philanthropic sector to leverage its collective resources, knowledge, and expertise for the good of New Jersey’s citizens. All told, 39 funders throughout New Jersey leveraged more than $100,000 with a match of $300,000 from the State in support of the Civic Justice Corps. The program sought to embrace court-involved and formerly incarcerated youth who complete extensive service projects in their own neighborhoods, while also attending classes to obtain their GED. New Jersey Together was in place for two years in three pilot cities.