Giving circles have received attention from community foundations and other public funders for their capacity to reach a broad range of donors, flexible and authentic appeal for donor engagement, and democratic approach to building a culture of philanthropy. But what does the giving circle—host relationship look like, and what benefits and challenges exist for hosts?

Key findings from Dynamics of Hosting Giving Circles include:

Contributing to a culture of philanthropy in their communities is the top reason that hosts are motivated to start or support a giving circle. Reaching new donors (81 percent) and a more diverse set of donors (74 percent) were also top-cited reasons. The actual benefits of hosting giving circles align with, and exceed, these motivations for hosting.

Host organizations offer a range of services to giving circles. The most fundamental service is providing 501(c)(3) status to giving circles to allow tax-deductible contributions; other top services offered include providing communications support, organizing educational opportunities for members and soliciting proposals from potential grantees.

Hosts cited staff time required, differences in expectations between the giving circle and host, and covering costs as the biggest challenges associated with hosting giving circles.

Co-Principal Investigator, Jessica Bearman, Principal, Bearman Consulting

Co-Principal Investigator Jason Franklin, PhD, W.K. Kellogg Chair in Community Philanthropy, Dorothy A. Johnson Center for Philanthropy, Grand Valley State University

Acknowledgments include The Collective Giving Research Group (CGRG) advisory board, Sarah Deming and Kolby Cole for research assistance in preparing this report. This research was completed with funding from the Charles Stewart Mott Foundation, and with support from the Bill & Melinda Gates Foundation via the Women’s Philanthropy Institute at the Indiana University Lilly Family School of Philanthropy.

Read the full report here