How nonprofits can tap into giving circles 

The fundraising landscape is looking particularly challenging as we head into the 2025 giving season. Donor retention is trending downward, competition for funds is rising, and nonprofits are under pressure to do more with less. At the same time, collaborative models of philanthropy are gaining traction. One of the fastest-growing of these is the giving circle. 

What is a giving circle, and what are the benefits for nonprofits? 

Giving circles bring people together to pool their donations and decide collectively where to direct their support. Members contribute on a set schedule, nominate nonprofits, and vote on grantees. While many giving circles support a range of local or issue-based organizations, nonprofits can host their own giving circles to help supporters pool funds and make a greater collective impact. 

Though giving circles first emerged in the early 1980s, the model has grown dramatically in recent years. Between 2017 and 2023, nearly 4,000 collective giving groups engaged over 370,000 members, mobilizing $3.1 billion to support various causes. 

For nonprofits, the benefits of the giving circle model are significant: 

• Stronger donor retention. Nationally, fewer than 2% of new donors begin with a recurring gift. By contrast, data from giving circle platforms show that more than 50% of new donors choose to give on a recurring basis. 
• Deeper community connection. Giving circle members often go beyond financial contributions to become volunteers and champion nonprofits. In fact, 60% of members reported an increase in time volunteered, and two-thirds reported making additional non-monetary contributions to their groups’ grant recipients. 
• More stable support. If one member pauses giving, the group sustains momentum. Group size also plays a role: 34% of giving circles have fewer than 25 members, which can foster close relationships and consensus decision making, while 38% have more than 100 members, offering stronger networking opportunities. 

Why is 2025 the moment for giving circles? 

Nonprofits in 2025 are navigating a period of transition. Donor behavior, funding sources, and engagement expectations are all shifting. 

New data highlights the challenge: Although the overall share of donors who make recurring donations has grown from 3.76% in 2019 to 6.23% in 2024, the share of new donors starting as recurring supporters has remained under 2%. GivingTuesday analysts estimate that increasing that rate by just 5 percentage points could unlock $10 billion a year, and a 10-point increase could add $20 billion annually. 

At the same time, younger generations are reshaping philanthropy. Research shows they want values-aligned giving, meaningful involvement, and a sense of shared purpose. Gen Z in particular is highly engaged: 84% support nonprofits or causes, including 59% who give as donors, 25% who act as followers or promoters, 33% who volunteer, and 30% who advocate. Separately, the 2023 U.S. Surgeon General’s report found that about half of adults say they feel lonely, with young adults especially affected. Viewed side by side, the findings point to a generation that seeks to give collectively and is experiencing higher rates of loneliness. 

A giving circle can offer an opportunity for those looking for connection. Survey data shows that 91% of participants reported a positive impact on their sense of belonging and 77% felt their voices mattered on social issues. In other words, collective giving is not only about dollars raised; it also builds community, connection, and agency. 

How can nonprofits connect with giving circles? 

As CEO of Grapevine, a platform dedicated to giving circles, I have seen how nonprofits of all sizes can benefit from engaging with this model. Importantly, connecting with giving circles does not require a major overhaul of your fundraising strategy, but instead acts as a powerful complement to your existing development activities. Practical entry points include: 

• Find existing giving circles. 
  Search the Global Giving Circle Directory to identify groups of highly engaged donors who align with your mission and access opportunities for funding and partnership. 
• Start your own giving circle. 
  Launching a circle within your community of supporters can be a powerful way to deepen donor engagement: 
• Start small. Invite a group of current supporters to pool contributions around your cause and build momentum to grow a wider donor community. 
• Use simple tools. Choose platforms that make it easy to invite and track members, communicate directly with them, collect donations, and automatically provide tax receipts. This not only saves your nonprofit valuable staff time but also gives members a seamless, transparent experience. 
• Keep communications open. Share stories about your impact and be transparent about how decisions are made. Regular updates help members feel connected to the cause, reinforce the value of their contributions, and build trust that keeps the giving circle engaged and growing. 
• Invest in your success. Cohort-based programs and masterclasses for nonprofits provide practical guidance on how to start and sustain a giving circle. These opportunities not only offer step-by-step support but also connect your staff with peers who are exploring collective giving. 

By experimenting with the giving circle model in manageable steps, nonprofits can test what works best for their community while strengthening donor engagement. 

For nonprofits, the opportunity in 2025 is clear: By embracing collective giving, organizations can engage the next generation of donors, deepen community ties, and build more reliable funding streams. 

Photo credit: Tima Miroshnichenko/Pexels