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First GC Networking Event

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GCN 2008 Conference


GCN held its First Annual GC Networking Event:  Conversations on February 3, 2007 in the Washington DC metro area with the purpose of providing Giving Circles an opportunity for networking so that they could exchange information, resources and techniques as well as gain insight into the world of philanthropy, brainstorm for best practices and discuss future collaboration.  The event brought together almost 30 participants from 11 organizations across Virginia, the District of Columbia, Massachusetts and Texas, including seven Giving Circles, the New Ventures in Philanthropy, the Giving Circles Network, and representatives from Giving Works and the Corporation for Public Broadcasting, not to mention individuals interested in forming new Giving Circles. 

The Giving Circles, of different sizes, levels of formality, purposes and approaches, included the:

• Giving Circle of Hope • Capital Seed • Washington Womenade • Impact Austin • Global Sojourns • Zing Foundation • Women's Foundation's African-American Women's Giving Circle

The event enabled the Giving Circles to expand their knowledge about the status of Giving Circles in philanthropy, how different Giving Circles started out and currently engage and support their communities of focus, what are their biggest challenges and how each addresses their respective organizational growth issues. Collectively, the Giving Circles found the event to be beneficial and recommended more opportunities for intra-circle collaboration in the future.

Giving Circle Presentations & Discussion Topics included: 

Speaker Presentations addressed the following topics:

See Participant Feedback


Networking:  The event commenced with 30 minutes of initial networking and display of the various Giving Circles' informational material and articles.  This gave the opportunity for one-on-one discussion prior to the start of the presentations. 

Speakers:  Three presentations kicked off the formal part of the event, with speakers from the Giving Circles Network, New Ventures in Philanthropy and Giving Works.

Giving Circle Successes & Needs and the role of GCN

Sandy Bettger, the Executive Director of GCN highlighted the successes of Giving Circles, citing the estimated 800 Giving Circles that exist today as well as the $44 million that has been documented by the New ventures in Philanthropy as having been raised by Giving Circles between 2000 - 2005.  She also addressed the current status of Giving Circles, which include 100s of disparate circles of different sizes, approaches and structures, with varying levels of knowledge and experience, facing startup often taking a year, and with no formal means to network (if their circle is not part of a chapter circle), analyze and plan their giving, or ensure success.  She explained that in response to these Giving Circle needs, GCN seeks to support GCs through its goals to enhance the networking, leveraging and impact of Giving Circles.  She further highlighted that its Giving Circles Advisory Panel lends its guidance and insight to the services and support provided by GCN.  Three of GCN's Advisory Panel were present including:  The Giving Circles of Hope, Washington Womenade and Impact Austin

Giving Circles & New Ventures in Philanthropy:

 

 

 

 

 

 

 

Daria Teutonico, the Director of the New Ventures in Philanthropy of the Forum of the Regional Association of Grantmakers, described the background of the Forum and the Initiative as well as their current focus and professional advisory role in not only Giving Circles but also racial, ethnic and tribal communities as well as rural communities and individual giving. She also highlighted the Giving Circles Knowledge Base, the listserv they sponsor, and the research scans of Giving Circles that they conduct (first in 2005 and an updated one, for which the results are expected in May 2007).  These scans shed insight into the characteristics and trends in this relatively new form of philanthropic giving.  In these ways, the New Ventures in Philanthropy helps individual donors and foundations to get to know the Giving Circle story and how to support Giving Circles and the grantees they fund.  NVP also helps Giving Circles themselves learn and engage their communities.

Giving Works: 

Background, Top Issues & Trends in Philanthropy Affecting Giving Circles

Nazir Ahmad, President of Giving Works, which provides strategic consulting to non-profit organizations, addressed some of the top issues in philanthropy today, and where Giving Circles fit in and are becoming a moving force. 

  • First, philanthropy is enormous, citing that Giving USA suggests that in 2005, 260B was spent on philanthropy, with 30B from foundations, 15B from corporations, 17B from bequests, and 200B from living individuals.  This underscores how much individuals -- not organizations -- are the ones who are in the center of and who actually power philanthropy. Nazir pointed out that this has always been the case, but that philanthropy is riding a new wave, and is shifting, with a lot of people now giving who have created new wealth, are relatively young in their lives, and have changed in their awareness.  Bill and Melinda Gates are an example of this.

  • Second, research is saying that the historic philanthropy is shifting away from large organizations to the causes and what those organizations are achieving.   Women have led the way, so they have always seen the ability to mix and match organizations with causes.  However, they are become more focused.  Also, partly because of the scandals among charitable organizations and because of the information that is available over the internet about the financials of such organizations, there is an increasing focus on performance rather than just charity (the giving itself), so what happens to the money is become more important.  This is also a huge shift. 

  • Third, there is more sense of active versus passive engagement.  The involvement of donors is getting more personal. 

  • Lastly, because of email and internet connection, philanthropy is becoming more of a networking activity, which is where Giving Circles are coming into play.

Trends in Philanthropy

Nazir Ahmad cited other trends impacting philanthropy and the role of Giving Circles in giving.  Specifically, he noted that there is: 

  • Increased innovation and diversification in giving.  One is ethnic diversity but also the rise of the Diaspora.  Because of the large amounts of transmigration and immigration, there are more resources being generated in one place that are being invested elsewhere, representing a major change.  The World Economic Forum found this to be an interesting marker that changes the nature of philanthropy. 

  • Decline of faith-based giving via religious organizations.  Such institutions are going to be challenged not in the religious faith aspect but due to the social service part of the mission.

  • Along, with the network effect, there are "many micros leading to macro change".  This is the potential power of Giving Circle and why they are taking hold.  "Of all the reasons people give money, the most cited reason is they were asked by someone they know whom they trust."

  • However, about 70M Americans, with an interest in giving, do not know where to begin their giving, and don't have the confidence that what they might do would produce the right results.  Giving Circles allow the possibility of enlarging the number of individuals and is all about driving change.

Connecting the "Giving Need" to "Giving Judgment"

For that desire and related giving to work well, Mr. Ahmad pointed out that the impulse of giving first must be accompanied by the discriminating thinking of judgment.  You have to develop the tools and practices so as not to only engage in the act of giving money, but more importantly engage in a higher quality of giving.

Second, while there is a lot of bonding in Giving Circles, there is the danger they become self-referential.  GCs will need to bring to their members other issues that may not touch the group directly, so the local-to-global connection has to be maintained in order that we go beyond our immediate mutual concerns. 

Third, decision making will become more important, so connecting with other Giving Circles plays a key part, which moves the Giving Circle from "episodic choices" to "sustained choices".  This leads from giving to contributing, including advocating new policies, investing in our political capital, and offering our expertise, thereby contributing to social change. 

Fourth, if you look at the range of technology available today, a range of people from disparate places can now link up

Most importantly, Giving Circles let us now for the first time, take giving from a "solo activity" to a "social activity", not only in terms of philanthropy but also the role we play in socially.  It is that process of engagement that we will see a change in not only our giving but our role in society.  It is for all these reasons, that Giving Circles, the Giving Circles Network, and the organizations that support them are becoming so important in philanthropy.

Giving Circles Presentations: 

Giving Circles Present:  Impetus, What they Are about & Challenges They Face

The Giving Circles gave informal but captivating presentations on what their impetus was for starting a Giving Circle, what they do as a Circle, and what the biggest challenges are that they face.  Below are their stories:

Giving Circle of Hope:  

The Giving Circle of Hope explained that, setup as a social investment club, their impetus was to "have fun with a purpose" and continue the work they enjoyed and found fulfilling as friends, parents and volunteers in the PTA and community, now that their kids have gone off to college.  While starting out around a kitchen table with a handful of friends, the GCH now is now starting its fourth year with a total of $150,000 in grants to the Northern Virginia area.  Almost 100 members strong, GCH is hosted by the Northern Virginia Community Foundation.  They not only have an large grant-making sub-circle, but also have a strong "service" sub-circle through which members volunteer their time in the Northern Virginia area.   Some members are only interested in writing a check, but others are only interested in doing volunteer activities.  Linda Strup pointed out that it's just that little extra step that is needed to help out, and the GCH allows people the structure and information do to that.  She said that many initiatives have been started by some members, but then another member might have the publicity or other capability to promote or implement an idea. So, it's all part of being part of group that helps them to succeed.  They say it doesn't take a village, it takes a Giving Circle!"

Impact Austin:  

Rebecca Powers of Impact Austin noted that her organization is a GC that started in May 2003 and went for its 501c3 status immediately, so has never been hosted.  It started based on a personal tragedy (and for "healing her own heart") in February 2003 and on reading an article about Impact 100.  She asked others "Why can't we find a 100 women?  How would you like to give $1000?"  She asked her friends, and they asked their friends.  They have five focus areas:  Health, Wellness, Family, Environment and Education.  They give grants of $100K.  Their goal was to grow 100 women/year so they could give $500K in five years.  It was not so much the money, but was about the members getting involved and becoming educated about these issues. What Impact Austin really does is to educate women and make a difference.  Now they have 416 members, so they have almost reached their goal of giving, which shows the power of collective giving.  Rebecca Powers advises that now actually going to the organizations receiving their grants and seeing the impact has been very rewarding.

Washington Womenade:

Lisa Herrick, Caroline Newman and Naomi Karp of Washington Womenade.  Lisa explained that their impetus was there were six friends having dinner, with one -- is a physician, Amy Kossoff -- who provides healthcare for the homeless.  She had expressed her concern during their dinner that she had hit the $10K mark in writing checks to "help the homeless" with her personal money, but could not keep giving so much herself, and did not know what to do.  The group of six decided that they would host an event and ask friends to bring money and just ask for $35.  Their model is "throw a big potluck and ask them to bring friends, a potluck dish and $35".  Amy Kossoff is the main conduit in giving the money away.  They only give the money to the entity, not the individual (i.e., to the pharmacy, landlord, utility company, or dentist). Everyone's donation goes to someone in need, and with zero overhead. You can't get simpler than that!

Caroline Newman advised that Womenade now has 42 chapters (organizations) nationwide, of which Washington Womenade is one.  Each Womenade across the county has a different focus.  Sometimes there are satellite women parties thrown on their behalf, with the money going through Amy.  Those people have helped them to keep their coffers up.

Naomi Karp noted that the major challenge is to keep it as simple as it is.  Some ask why they do not become a 501c3.  The six founders have no bureaucracy. Their mantra is to keep it simple, and they do not want infrastructure to complicate it.  Naomi is a lawyer and does not see a need for them to become more formal or even to use a host.  Another challenge is when someone else approaches them and tries to give them a different conduit or need other than working through Amy Kossoff.  While they have only raised $40K in six years just within the Washington Womenade chapter, they think that is incredible because of how simple it is.

Global Sojourns:  

 

 

 

 

 

 

 

 

 

 

Priscilla Macy of Global Sojourns explained that the impetus for their Giving Circle was that in the course of her business at Global Sojourns sponsoring alternative international travel events, the participants often returned from their trips asking "where can I give back internationally".  She found this to be a hard question to answer, but eventually sought to do something about that desire.  As a result, she participated in a forum called "Travelers' Philanthropy", which is essentially travelers wanting and actually giving back to the places they visited.  However, she was in some instances horrified as to the nature and results of their giving, because international giving can so easily become harmful if not done with adequate knowledge and care.  In response to the desire of the travelers she knows and to hopefully maximize successful international giving, Global Sojourns teamed with The Clarence Foundation as a host, given that the Clarence Foundation has experience sponsoring and hosting Giving Circles focused on different themes and different countries.  She and a very small group of 13 friends who give between $500-$2000 each to be part of the decision-making process at Global Sojourns, including Holly Wise who was present and who has a background international development.  They plan to conduct their meetings by teleconference given that their members are located throughout the United States. A large part of their approach is focused on the education side.  They will vet some of the projects first hand and bring the information back to the group to make a decision.  The next meeting will actually be to review the projects that they plan to visit.  They want to figure out how to leverage this -- whether to really go after the money or stay focused with a small group and just enable people to connect.

Capital Seed:

Sarah Bjork and Noelle Notarnicola of Capital Seed cited their origin and impetus as a cross-generational event, in which the Giving Circle of Hope members "held a get together and invited their children and their children's friends" and suggested that they start their own circle.  They thought that was a terrific idea.  They do not have a lot of money, but do have a lot of talent, knowledge and skills so give more with their time and capabilities than money.  They focus on community ownership and thereby give back where they live and work.  Capital Seed is a social network where they let people know what is going on and take responsibility for collecting and delivering items for food and clothing drives.  While a lot of people participate in the Circle, there is a core group of six who donate most of the time and try to find the best way to leverage the involvement of others in small ways and in their own backyard. 

Zing Foundation:

 

 

 

 

 

Christopher Ellinger and Shaleh Alamee of the Zing Foundation kicked off their presentation with a facilitated group exercise whereby they solicited the energy that motivates the Giving Circles present in one-word descriptions of their feelings and then acted out those motivations -- honoring traditions, friendships, celebrating success and healing the heart -- to express artistically the spirit generated during the event.  Christopher Ellinger explained that the impetus was his long-term interest and experience in donor education and the "excitement of the giving process".  Shaleh Alamee described her impetus as seeing "the power of social change in Giving Circles and the excitement of donors by being involved."   The Zing Foundation is supporting a hybrid model whereby they are looking for Giving Circles that their Foundation will help train, launch and support in the Boston area via a program to educate potential donors and then provide both organizational support and sector or project support, with an issue focus on the arts and social change.

African-American Women's Giving Circle:

 

 

 

 

 

 

 

Brigette Rouson and Claudia Thorne of the Women's Foundation's African-American Women's Giving Circle advised that their circle was formed two years ago from an idea to "bring more of African-American women into the Foundation".  It now has 23 members and asks its members to donate $5000 over two years.  They came up with criteria, based in part on a prior Circle of the Foundation called the "Rainmakers' Circle".  Claudia Thorne advised that her personal reason for joining was because she "was asked by a friend", Brigette Rouson.  What became important in their circle was their relationships and consensus building.  Therefore, they decided that they wanted their grants to have a lasting effect with inter-generational impact in a needed area such as Anacostia and in the areas of youth leadership and public housing.  The major challenges surround the pacing among different members during the grant-making process -- whether to move quickly to meet the pressing needs of the community promptly or whether to plan strategically.  They circle has found a happy medium that is both strategic and responsive to the community.

Q&A Discussion

Steve Greisdorf, GCN Board Member, moderated the Giving Circle presentations as well as the open forum Q&A session that followed. Originally, GCN envisioned small group discussions focused on different pressing themes recommended by the Giving Circles in advance of the meeting, which were: 

  • Grantee Performance: How to Measure Impact

  • Member Recruitment & When to Hire Staff

  • Women’s Inter-Generational Legacy Issues

  • Generating Consensus

  • Corporate Partnerships

  • Learning Process (Identifying & Using Material)

  • Web-Based Philanthropy

  • Giving Circles Advisory Panel Future

The consensus during the meeting was for everyone to hear all the questions and answers.  While there was not time to address all the above topics, below are the topics discussed:

Grantee Performance: How to Measure Impact - The first issue was on grantee performance.  The responses were as follow: 

  • Rebecca Powers advised that Impact Austin views this in two aspects:  First, it does not distribute all the money at one time; rather, each grant recipient completes a grant payout timeline that is mutually agreed upon by Impact Austin and the recipient. It is usually 3-6 payments over 12-24 months--based on when they are going to need the funds. Second, Impact Austin is also focused on the impact two years after the grant is completed to find out if the giving was sustainable.

  • Linda Strup of GCH advised that they fund profits once per year, and the annual grant process terminates with a vote by voting members in late November of each year. GCH does require a written accounting of the success and progress of the project that was funded with GCH money at the latest by August 31st each year. GCH allows non profits to apply three years in a row, but after that, encourages them to go elsewhere so as not to become dependent.

  • Scott Lyons of the Corporation for Public Broadcasting recommended looking into a free tool for measuring the impact via the National Center for Outreach, which is available on their website. 

  • Nazir Ahmad noted that while grantee performance is essential, it was wise to take caution in the reporting requirements, which can sometimes take away valuable time needed for their projects and also recommended having a conversation with the grantees to find out what the "surprises" were that they found during the grant, as well as to develop a partnership with the grantees, since all of these factors can help the success of the grantees.

Organizational "Care and Feeding" - Womenade asked how much care and feeding do you need to give to your Giving Circle (in terms of social engagement)?

  • Holly Wise of Global Sojourns advised that, in their case, one individual had taken on the responsibility of hosting and personally contributed for the expense of teleconferencing and setting up the arrangement with their host to move the Circle forward in "solving a problem".

  • Rebecca Powers of Impact Austin advises they do not get together for only social reasons any longer, although they do get together socially "with an educational component".

  • Linda Strup advised that the Giving Circle of Hope finds it important to keep members engaged, with holiday cards every year as well as hosting a large social event called the "Grantee Celebration" where each grantee has a table, and holding other social event gatherings throughout the year.

Leadership & Transition A question was raised about how the Circles handle leadership and transition.

  • Washington Womenade advised that they do not have bylaws, let alone even have a notebook on how to handle formal matters.  Sometimes other members ask "can I be in the 'in group'?".  Their answer is no, but you can have your own Womenade and your own Giving Circle, and you can pick your closest friends to lead.

  • Rebecca Powers of Impact Austin said that they do have a term limit in their bylaws.  Their vision was well beyond the founders, so it becomes all about the organization and not about the founders. The question is how to carry that founder's passion forward.

  • One participant recommended that the leadership members do not need to rotate off all at the same time; it can be staggered.

  • Another recommended using the "University approach" where you have "senior trustees", so the Circle does not lose their knowledge or expertise.

  • Steve mentioned that there is something anti-institutional about Giving Circles, so leadership and responsibility can present a challenge, but because some Giving Circles are getting so large, they do need to keep an eye on the future and prepare for it.

Education

Brigitte Rouson of the African-American Women's Giving Circle inquired what other people have done with respect to strategically educating members of their Circle and learning about other circles. She inquired whether other circles hold training sessions on financial statements, site visits, etc.   Rebecca Powers of Impact Austin explained that their members can go through financial training, site visit training, etc., and they hold such sessions, but it is not necessarily required.  In addition, as part of the grant-making process, the members read four-page reports on each of the finalists, so they can make informed and educated decisions about the grant applications. 

 

Participant Feedback:  The vast majority of the participants (72-78%) rated the Giving Circle sharing and the overall effectiveness of the event the highest (on a scale of 1 to 5).  A significant percentage (94%) rated one of the top two ratings, so GCN feels that it accomplished its primary goal of supporting the networking of Giving Circles.  The success of the event is due in large part to the early and continued feedback received by GCN from GCs on how they would like to have the event structured, so is in large part due to their involvement. 
 
Some detailed comments were that in future networking events should have:
  • A whole day networking event;
  • More one-on-one discussion and networking time;
  • More Q&A immediately following GC introductions; and
  • More time for large group wrap up.

GCN hopes to host additional such events in the future.  If you have any feedback on or questions about this article or event or believe that such a networking event would be beneficial in your community, please feel free to contact us at info@givingcircles.org.

 

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