In recent years, philanthropy has undergone a much-needed refresh, shifting from top-down giving to grassroots, community-led models. Giving circles repeatedly stand out as a powerful force for democratizing and diversifying philanthropy. Named by Axios as the fastest growing form of philanthropy right now, collective giving is a multi-billion global movement with 4,000+ giving circles in the U.S. alone, engaging 370,000 philanthropists to give away $3.1 billion between 2017 and 2023 — more than doubling its impact in seven years. Further, In Abundance: An Analysis of the Thriving Landscape of Collective Giving in the U.S., a collaboration with Dorothy A. Johnson Center for Philanthropy, Colmena-Consulting, and Philanthropy Together released earlier this year, highlights the transformative power of collective giving as a force of democratizing philanthropy, personal and community growth, and more social cohesion.

The In Abundance report revealed five key findings that underscore the transformative impact of collective giving. Here are some notable news stories published this year:

  1. Collective giving is democratizing and diversifying philanthropy. Giving circles enable everyday individuals to pool resources and decide collectively where to allocate funds. This approach levels the playing field in a philanthropic landscape often dominated by billionaires and large foundations. According to a Barron’s article, giving circles have brought new voices to decision-making tables, fostering inclusivity in philanthropic efforts.
  2. Collective giving greatly expands what gets funded. Giving circles often fund causes overlooked by traditional philanthropy. For example, the LGBTQ+ Giving Circle in Lancaster County, Pennsylvania recently awarded $100,000 to grassroots organizations, emphasizing local priorities and addressing underserved needs. These examples illustrate how giving circles can drive funding to niche or emerging areas.
  3. Collective giving pushes the bounds of how philanthropy is practiced. Unlike traditional models, giving circles thrive on flexibility. As highlighted in the Washington Examiner, these groups adapt quickly to community needs and empower members to act as decision-makers. This participatory model redefines how philanthropy operates, emphasizing trust and community expertise.
  4. Collective giving deeply impacts members themselves. Giving circles create opportunities for personal growth and meaningful engagement. One story shared by JHV Online describes how a Houston teenager’s involvement in a family giving circle transformed their understanding of community impact, leadership, and social responsibility.
  5. Collective giving is a catalyst for social cohesion and change. Beyond financial contributions, giving circles bring people together to foster connections and shared purpose. CNN’s feature on women donors in giving circles highlights how these groups build networks of support and drive collective action, enhancing social cohesion and community resilience in politics and beyond.

With increased visibility in 2024, giving circles continue to amplify collective and inclusive community collaboration. By pooling resources and amplifying diverse voices, these groups are redefining what it means to give, ensuring that philanthropy becomes more equitable and impactful. The In Abundance report shares that the giving circle “movement is now on a trajectory to double again in the next five years, underscoring its growing appeal and potential to profoundly reshape the philanthropic landscape”.

As we head into the new year, the new report Patterns in the Tapestry: A Typology of Collective Giving Groups delves deeper into the various types of collective giving groups. The typology identifies seven archetypes based on three core dimensions: membership characteristics, giving focus, and organizational processes. In this report, you’ll find case study examples of each of the archetypes, as well as a practical worksheet to provide guidance to both those interested in starting new giving circles and those looking to refine and strengthen existing groups. Read more here.