I don't have a lot of friends here in Austin right at the moment, and I'm struggling to find ways to connect with more people who have the same interests I do - preferably beyond changing diapers and folding baby laundry. I also don't have as much time to do the volunteer work I used to do when I had a dog who could fend for herself for a day as long as she had food, water, and bathroom breaks. Now every time I make plans, I also have to account for a nearly helpless eleven month old. Well, ok, he can now feed himself chunks of banana, but you see my point. Kind of cuts down on my opportunities to spend a day at the food bank or building a house with Habitat for Humanity and see who turns up that might be interesting to talk to.

So I'm thinking about joining a giving circle, which is the name for a new trend in individual philanthropy.

What's a giving circle?

Giving circles are an innovative way to bring together a larger amount of money than any one member could do on their own. Donations are pooled, and together the group decides how to award the money. In some giving circles there's a set donation, in others people simply give what they can.

Buffy Beaudoin-Schwartz, communications director for the Association of Baltimore Area Grantmakers, describes giving circles based on her experience with them in the Baltimore area:

Giving circles as we know them, the majority of them have started in the last decade. People were looking to roll up their sleeves and not only write a check, but perhaps have a better understanding of where their dollars are going and to be more involved and have a greater say as to where their donations end up. [...] Donors can learn more about the issues they care about and more about the community in general. They can learn more about the grantmaking process. There are networking opportunities, social and hands-on volunteer opportunities, and frankly, they're fun. It's a joy giving money and giving it with others who care about issues you care about.

Did you know that individuals contribute the vast majority of all dollars that go to nonprofits? Between direct giving and bequests, people give over 80% of all donations, compared to about 13% given by foundations and 5% by corporations. I was completely shocked to learn this. When foundations and corporations give thousands or millions of dollars at a time, it's hard to keep their giving in perspective. There are only a few of them compared to the number of individuals in the United States, and so our donations - no matter how small - really add up.

Giving as part of a giving circle also adds up.  It's a lot more fun to give away $50 than $5, and even more fun to give away $200 or $2000. But if you don't have that kind of cash to spare, pooling your money with others is a great way to be part of a big donation that really helps out your favorite cause or charity.

What do giving circles do?

Many existing giving circles are focused on women's issues. Dining for Women, which started in South Carolina, has potluck dinners and members pool the money they would have spent eating out. The first event raised $750, and it's only getting bigger. Women United in Philanthropy in New Jersey is in its third year, and they will be giving away $100,000 in grant funding to programs serving women. Author Rosie Molinary is forming a giving circle to support Latina teens, drawing on women's history of working together to heal their communities.

However, giving circles can focus on any issue that's important to members. Giving circles range in size from small to very large, with hundreds of members. Sojourners magazine describes the diversity of giving circles in its article Kitchen-table Giving:

Circles come in myriad sizes and styles, from low-key groups that fit around a kitchen table to groups with dozens of members and elegant events. They may focus on emergency needs, youth programs, or the arts. Individual contributions range from pay-what-you can to minimums of a few thousand dollars. Circle members may also volunteer time or offer technical assistance (such as PR or legal help) to local organizations, further enhancing the civic engagement and face-to-face relationship-building power of circles.

A giving circle of 10 people who can each donate $25 raises $250, a significant sum to a nonprofit organization that needs to buy warm clothes for kids, groceries for elders, or even just pay their phone bill so they can answer calls from the people they're helping.

For me, the appeal of a giving circle is making a connection with some other folks around a topic we all care about, thus providing a built-in conversation starter. It also seems like it wouldn't take as much time as traditional volunteering, but would provide a semi-regular social event.

What do you think? Ever heard of giving circles before?