Giving Circles

As a fairly recent trend in philanthropy—though the seminal family philanthropic foundation is certainly an element in their development—giving circles seems to be somewhat resistant to the down economy, as reported by National Public Radio.

The charity mentioned in the article, Pathways to Housing, is one I am long familiar with for their exceptional work with the chronic homeless.

An excerpt.

“Charitable donations have been declining, along with the economy. But one type of giving appears to be on the rise: giving circles. Many people are forming these groups where they pool their funds so they can have a greater impact on a charitable cause. Their growth comes at a time when donors say they want more control over how their charitable dollars are spent.

“A new study published Thursday says those who belong to such circles tend to give more money.

“One such circle, in Washington D.C., is called Gather and Give, Let's Eat, or GAGLE for short. It's a group of about two dozen young professionals who have each contributed between $75 and $200, for a total of almost $2,000. They hope to decide by June where to donate the funds.

“Most of the members of GAGLE are women in their mid-20s. They met at college, work or through mutual friends, and their monthly meetings are, in part, a chance to socialize. It's also a chance to eat — they always start with a potluck dinner.

“But it's the giving part that really ties GAGLE together. The members don't have much money, but they still want to make a difference.

“Making The Pitch

“On a recent weekday night, GAGLE invited Linda Kaufman, from a charity called Pathways to Housing, to address the group. They wanted her to explain why they should give their money to her organization, as they whittle down a list of possibilities. The circle's organizer Sunitha Malepati, who works for a nonprofit organization by day, tells Kaufman the circle has decided it wants to help alleviate homelessness.

"So we wanted to get a sense of what you guys do, how you're different from other organizations in the city," she says. "And give us a sense of your needs as an organization and how we can make a difference, whether that's volunteering there, making a one-time contribution."

“So Kaufman makes her pitch. She explains that Pathways works with the chronically homeless and mentally ill, first by getting them into housing. She says $2,000 might not seem like a lot of money, but it can set up two people in apartments, with furniture and supplies. She appears to win the group over with poignant stories of people whose lives have been turned around.

"I can't tell who's going to make it and who is not, but I think we have an obligation as a country to offer people the possibility of the dignity of housing," she tells the group gathered in Malepati's living room. There's a silence, and then everyone breaks into applause.”