Quick answer: Giving circles are groups of donors who pool their contributions to make a larger collective gift. For nonprofits, they offer a structured way to attract new donors, deepen engagement, and grow recurring support—without requiring a major fundraising overhaul.
Most nonprofits rely on the same handful of major donors year after year. It works—until it doesn't. Donor fatigue, changing priorities, and economic uncertainty can erode even the most loyal base. Giving circles offer a smarter way to diversify.
What is a giving circle, and how does it work for nonprofits?
A giving circle is a group of individuals who pool their money and decide together where it goes. Members typically pay an annual fee or recurring contribution, then vote on which organizations or projects receive the funds.
For nonprofits, giving circles serve two purposes: they bring in pooled donations that carry more weight than individual gifts, and they create a built-in community of engaged supporters who feel personally invested in your mission.
Why giving circles are an effective donor acquisition strategy
The numbers tell a compelling story. According to Philanthropy Together, there are an estimated 2,500+ giving circles in the United States, collectively distributing over $1.29 billion to date. Participation also skews toward demographics that are underrepresented in traditional major giving—women, younger donors, and donors of color.
That matters for nonprofits trying to diversify not just their funding, but who shows up at the table.
Giving circles also tend to produce stickier donors. When someone joins a circle, they're not just writing a check—they're joining a conversation. That sense of ownership translates into higher retention rates and stronger long-term relationships.
How to attract giving circles to your nonprofit
You don't need to build a giving circle from scratch. Here's how to position your organization to attract existing ones:
- Make your impact easy to quantify. Giving circles are collaborative by nature—members need to make a case to each other. Give them clear data: cost-per-outcome metrics, program results, and stories that translate well in a group setting.
- Offer site visits and briefings. Giving circles often want to meet the people behind the mission. Host a 30-minute virtual briefing or an in-person tour to make your work tangible.
- Connect with giving circle networks. Platforms like Philanthropy Together and local community foundations maintain directories of active circles. Get listed and make your grant guidelines easy to find.
- Create a designated point of contact. Assign someone on your team to manage giving circle relationships. Responsiveness signals that your organization takes these partnerships seriously.
Should your nonprofit start its own giving circle?
Starting an internal giving circle—where your existing donors recruit peers—can be a powerful acquisition tool. It essentially turns your current supporters into ambassadors.
The key is keeping the structure simple. Set a clear membership contribution (even $250 or $500 annually works for smaller circles), establish a transparent decision-making process, and celebrate the collective impact at year-end.
SD Mayer works with nonprofits to build financial frameworks that make this kind of donor engagement sustainable—from tracking pooled contributions to reporting on fund allocation in ways that keep giving circle members informed and confident.
Building a Donor Base That Lasts
Giving circles aren't a silver bullet, but they're one of the most underutilized tools in nonprofit fundraising. They attract new audiences, deepen community ties, and generate the kind of donor loyalty that sustains organizations through lean years.
If your nonprofit is looking to diversify its funding and build genuine relationships with a broader group of supporters, giving circles are worth a serious look. SD Mayer can help you put the financial infrastructure in place to make it work. Get in touch with our team today.
Frequently Asked Questions
What is the difference between a giving circle and a donor-advised fund?
A giving circle is a group that pools money and makes collective grant decisions. A donor-advised fund (DAF) is an individual account held at a sponsoring organization, where the donor recommends grants independently. Both can benefit nonprofits, but giving circles emphasize community and shared decision-making.
How much money do giving circles typically donate?
Gift sizes vary widely. Smaller community-based circles may distribute $5,000–$20,000 annually, while larger national circles can grant six-figure amounts. The key advantage is that even modest pooled gifts exceed what most individual donors would give alone.
How can a small nonprofit get started with giving circles?
Start by identifying two or three existing giving circles in your area through local community foundations or Philanthropy Together's directory. Reach out with a clear one-page summary of your mission, impact data, and grant eligibility. Keep it simple and let the relationship build from there.
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DISCLAIMER:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. The services of an appropriate professional should be sought regarding your individual situation.
HYPOTHETICAL DISCLOSURE:
The examples given are hypothetical and for illustrative purposes only.
