"Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has." In this revered quote, anthropologist Margaret Mead neatly sums up the grassroots power of giving circles: that a few like-minded souls working together can make a difference.

Giving circles can be as informal as a few friends pooling their money to donate to their favorite charity. Readers Reaching Out — an eight-member book club in Reno, Nevada — does just that, making collective gifts to nonprofits working on causes that they've learned about through their reading, demonstrating the power of giving circles.

Alternatively, a giving circle can be an organized group of hundreds of individuals, banding together to make a difference in their community. The giving circle called Ninety-Nine Girlfriends, which has grown to include 334 "girlfriends," makes sizable grants to nonprofits addressing needs in the Portland, Oregon, metropolitan area.

Philanthropy Together, a global collective giving initiative, estimates there are about 4,000 giving circles currently operating in the United States. And they are, indeed, making a difference, underscoring the power of giving circles. "Between 2017 and 2023, giving circles gave away nearly $3.1 billion," says Ilyasah N. Shabazz, communications director for Philanthropy Together, adding that this amply demonstrates the power of those "small group[s] of thoughtful, committed, citizens."

Giving Circles 101

What exactly is a giving circle? In a nutshell, "giving circles are groups of people with shared values and/or interests who pool donations and decide together where to allocate their money," explains Shabazz.

Given such a broad definition, it is not surprising that giving circles vary greatly, both in size and focus.

Based on size alone, Shabazz believes that the Women's Fund of Santa Barbara, with about 1,200 members, might be the country's largest giving circle. On the other end of the spectrum, giving circles can be as small as two individuals "coming together for multiplied impact," says Shabazz. Or, like Readers Reaching Out in Reno, your intimate, monthly book club.

Read the full article about the power of giving circles by Marie Sherlock at Forbes.