When Las Vegas resident Maureen Romito was nearing retirement, she knew she wanted to give more money to good causes. But there were two problems. First, she was not wealthy: "I couldn't become who I think of as a typical philanthropist in the United States—someone with the last name of Gates or Buffett or Musk, somebody that makes a lot of money."

Second, it was hard to know who to give to. "There were so many different causes, so much need out there," she says. "If I give $25 to one group, and $50 to another, what difference am I making?"

Then she discovered giving circles: groups where members pool their donations and decide together where to allocate them, Reasons to be Cheerful reports. In 2012, inspired by similar efforts in Austin, Texas, Romito set up Impact Las Vegas, a giving circle for women who want to help their community. Members donate a minimum of $1,000 each year, which is pooled into one large grant. Local nonprofits apply, and members whittle them down to one lucky recipient. Last year, having grown to more than 100 members, Impact Las Vegas gave $113,000 to a nonprofit providing school supplies to children in need.

Giving in this way addresses several concerns. The impact of Romito's relatively small gift is multiplied, creating one large grant that can be "transformative" for the recipient. As a donor, she gets to hear about the difference it made, which is not usually possible with much smaller gifts. And choosing an area of focus draws on the combined knowledge and experience of the group. "That's the wonderful thing—it's really based on the need we see in our own community, and it changes every year," she says.

As Old as Humanity

Giving circles are widespread—and growing. Between 2017 and 2023, Philanthropy Together, a U.S. nonprofit that supports this movement, identified nearly 4,000 collective giving groups in the U.S., involving 370,000 people giving more than $3.1 billion. It expects this to double within the next five years.

While the modern American giving circle rose to prominence in the past few decades, the underlying concept is "as old as humanity," says Ilyasah N. Shabazz, who leads operations and communications at Philanthropy Together. There are long traditions of mutual aid and solidarity among marginalized communities, and giving together occurs in many cultures—from tandas in Mexico to gehs in Korea and sou sous in West African countries. "They have a different name, but it's the same core principle of collective giving and collective generosity," says Shabazz.

Today's giving circles vary widely. Some involve groups of friends; others are more formalized, with hundreds of members.

Read the full article about giving circles by Anna Patton at WFTV.