Philanthropists increasingly are turning to collective giving groups and the concept that pooling resources can make a greater impact. More than 1,600 groups exist nationwide, a number that tripled over the course of a decade, according to a November 2017 report by the Collective Giving Research Group. These groups can vary widely in their approaches, but most of them face a similar challenge: How to keep members personally invested once they have contributed financially.

Setting the Tone

Engagement has been an area of focus for Impact Giving, a women’s collective giving group founded in Orange County, Calif., in 2009 with the mission to “Engage. Educate. Empower.” Rather than refer to the women as members, the organization is made up of Partners, a designation chosen to convey equality and encourage involvement. This mindset is reflected in the grant process itself, which deviates in some key aspects from the majority of giving groups.

Empowered by the Process

Different from many organizations that use an open application process, every nonprofit considered for an Impact Giving grant must be sponsored by a Partner, who typically has a relationship with the nonprofit. This allows the grant process to reflect the values and passions of the membership. As an additional benefit, because the nonprofits have been vetted by a Partner, Impact Giving is able to keep its grant applications relatively short and less burdensome for the applicants, many of which operate with limited resources. Partners are eligible to sponsor one grant, and women serving on grant committees — where the applications are evaluated — are allowed two. Impact Giving has found that Partners who serve on grant committees typically remain with the organization longer and added this benefit, in part, to encourage participation.

Also not typical of most giving groups, the nonprofits can be local or global and address any type of need, allowing Partners to put forward organizations they care most deeply about, regardless of the community that they serve. The Collective Giving Research Group’s report, “The State of Giving Circles Today,” found that 84 percent of giving circles made their grants in their local geographic area. On average, Impact Giving awards 65 percent local and 35 percent global grants.

Every Partner is invited to sit on a grant committee, although doing so is not mandatory. The committees typically meet twice and evaluate the applications based on Impact Giving’s standards, which include impact, education, sustainability, community building, innovation, and measurability. Impact Giving requires every nonprofit to receive a site visit or — if not local — a video call. This gives Partners an opportunity to learn more about the organization’s work, meet the staff, and deepen their understanding of the issue being tackled. Sponsoring Partners are not allowed to sit on the committees evaluating their own grants, but are invited to the site visits as advocates.

After each committee advances two to three grants, the entire Partnership votes on the 15 to 20 selected projects. The top vote-getters — with the number varying from year to year — each receive $10,000 to $40,000. The grant committees make a recommendation about how much money their selected projects should receive, and a “tally committee” makes the final determination. The money must be spent in one year, allowing Partners to see the impact of their contributions. Recipients also submit semi-annual updates that are shared with Partners through Impact Giving’s monthly newsletter and on social media. This ensures that projects are on track to be completed within the year.

Opportunities to Connect

Each grant season culminates with an awards event that includes a cocktail hour, silent auction, dinner, and presentation revealing how much money each recipient is being given. The evening is a chance for Partners to interact with each other, as well as the nonprofits they are supporting. Grant recipients come on stage to share inspiring stories about their nonprofits and the people that they serve.

Beyond grant-related activities, the organization continues to add Partners events throughout the year to foster a greater sense of community. Impact Giving also provides opportunities to volunteer with the grant recipients. In December, for instance, Partners served food with Bracken’s Kitchen, a local nonprofit that serves hot meals from food trucks and received a grant in 2019 for kitchen equipment to increase their food service program.

While collective giving groups are first and foremost about the giving, these organizations shouldn’t underestimate the importance of empowering members through key processes and providing opportunities for them to connect with each other.

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By Jennifer Grzeskowiak, Marketing & Communications Chair at Impact Giving.