Collective giving — the pooling of financial resources and information with shared decision-making for social impact — has existed throughout history, ranging from 18th-century mutual aid societies, to present-day crowdfunding for community initiatives and giving circles focused on women’s health.[1] In all its forms, collective giving provides donors with unique opportunities for engagement, education, and community-building.

In recent years, the number of documented collective giving groups has exploded, with participation and total monetary donations increasing by 140% between 2017 and 2023, in part thanks to giving ecosystem groups like Philanthropy Together and Grapevine. During this period, nearly 4,000 groups raised $3.1 billion in funds. Similar growth is expected to continue over the next five years.[2]

If you are a donor interested in impact, collective giving can be a way to learn more about causes and grantmaking, reduce risks in giving, address power inequities in traditional philanthropy, and deepen connections in your community. This philanthropic tool can be deployed alongside and in coordination with other forms of grantmaking.

Collective giving can offer a more democratized form of philanthropy. While traditional philanthropy has long been “top-heavy,” the power imbalance has grown in recent years. In the U.S., high-net-worth donors are giving even more while overall participation in giving in has declined precipitously due to a decrease in giving by “everyday” donors.[3] This means the influence of wealthy donors on the activities of nonprofits has increased. Collective giving groups allow everyday donors to have more decision-making power in pursuing impact. By pooling funds, these groups can amplify the influence of constituencies often absent from grantmaking discussions. This makes collective giving particularly attractive for those focused on equity, specific communities, and particular places.[4]

Giving together provides a good way to learn about grantmaking. Collective giving creates environments for meaningful dialogue and collaborative learning. As participants try new ways of selecting and forming relationships with grantees, they can apply these lessons to their other philanthropic efforts.

Collective giving often exposes donors to new organizations, social change leaders they wouldn’t otherwise meet, and new aspects of complex causes. Together, group members can develop subject-matter expertise, explore participatory or trust-based grantmaking, and find new resources. Some collective giving vehicles intentionally connect donors with different backgrounds and lived experiences, enriching the learning potential and opportunity for new relationships.

Collective giving, especially giving circles, often acts as a seed funder of grassroots nonprofits. By pooling funds with others, capital goes further, and grantees, often local, community-based organizations, can receive larger gifts. Grantees need only report to and communicate with one entity, streamlining their fundraising and donor stewardship efforts and freeing up more time for programmatic work.

Getting involved in collective giving can be as easy as contributing to a pooled fund focused on a particular cause or as involved as a giving circle where you both make grantmaking decisions and raise additional funds for a cause you care about.

Join a collective giving group. Collective giving vehicles, like giving circles, vary dramatically in size and focus. Social investor and High Impact Philanthropy Academy alumna Danisha Patel notes, “Every giving circle has its own ethos,” and as such, its mission should align with your giving priorities. You can use tools like Philanthropy Together and Grapevine’s Global Giving Circle Directory to find a collective giving group that matches your interests and goals.

Form a collective giving group. You can start a group with a friend, organize a diverse circle of community members, create a collective giving circle  to engage multiple generations of your family, or develop a global network of like-minded funders. Facilitating and managing collective decision-making takes work, so seek out training, tools, coaching, and online infrastructure from organizations like Philanthropy Together, Philanos, and the Jewish Federation of North America’s philanthropy idea generator, Amplifier.

Support collective giving in communities you want to impact. Collective giving groups are generally organized around shared decision-making. As with traditional philanthropy, however, those who benefit from grants are frequently left out of discussions about how money should be allocated.

For Teo and Emily Valdés, High Impact Academy alumni whose giving has largely focused on the U.S. South, self-conscious questioning is crucial, particularly in addressing power dynamics: “How can we share the power?” One answer is to fund organizations like community foundations, collaborative funds, and other giving groups close to the intended beneficiaries. The groups can then regrant the funds using their own specialized expertise, lived experience, and local knowledge.

Use what you learn to inform other giving. Most people who participate in collective giving groups also give in other capacities, whether through individual donations or foundations. Collective giving can be a way to learn about particular interest areas and develop new philanthropic approaches or practices that can be applied in other grantmaking decisions.

An advantage to operating as a group is better access to knowledge from experts. Regarding one of her own groups, Patel reflects, “People are open to meet us and teach us about what is going on… They are receptive to us as a community.” Specialized knowledge shared with a group can be used to inform your individual philanthropy.

Explore pooled funds, particularly in times of crisis or when exploring a new cause area. Pooled funds can be a great way to get to know the landscape and complexities of a new space. Bridgespan has a database of collaborative funds, as does the Gates Foundation. GlobalGiving has a collection of funds focused on crises.

Contributors:

Sara Lomelin, CEO of Philanthropy Together; Victoria Vrana, CEO of GlobalGiving.