Collective Giving: A Game-changer for Nonprofits

Philanthropy is no longer just about making a donation and calling it a day—it’s about creating genuine connections and excitement that translate into real impact. Philanthropy is shifting gears, and collective giving is leading the charge.

Collective giving empowers like-hearted and like-minded people to band together in micro-communities to give toward a purpose and mission bigger than themselves. In our increasingly tech-driven and now AI-focused world, face-to-face interactions and true connections are proving to be more important and valuable than ever. 

And for Christian nonprofits? This type of giving may be the missing link to revitalizing your organization’s mission and re-energizing your donors.

What is a Giving Circle?

Collective giving is known in different groups by different names. These terms may include terms like giving circles, giving chapters, collective giving groups or giving projects. Essentially, a giving circle is a group of donors that together give intentionally and strategically toward a specific project, cause or mission. Sizes of groups may range from a few people to a few hundred.

The members of these groups often share a common thread of belief that they can leverage the power of working together to accomplish more than they can on their own. Practically speaking, this may look like a group of donors inviting friends, family or their small group to give toward a specific project with a cause close to their hearts.

Why Collective Giving is All the Rage

The buzz around collective giving isn’t just hype—it’s rooted in powerful outcomes. Look at Sara Lomelin’s TED Talk (TED Conferences, 2022), where she champions giving circles and collective generosity. With more than 1.5 million views at this article was published, it’s clear the message is resonating. 

Giving circles came on the scene in the early 2000’s, though there have been a handful around for decades. Since 2017, the collective giving movement has skyrocketed. Nearly 4,000 groups have rallied 370,000 philanthropists and raised over $3.1 billion in donations—a more than 140% increase in both participation and funding over six years (Dorothy A. Johnson Center for Philanthropy).

For Christian nonprofits, this is more than a trend—it’s an opportunity to encourage your ministry partners to live out the call God gives us in the Bible to live generous lives in community with one another. Collective giving can be a way to develop donors into true advocates for your mission. What better way to engage and educate others than to invite them face-to-face into giving with you and a handful of others? When partners of your ministry see to an initiative completed, it brings a deeper sense of connection to the mission of the organization.

Big Impact, Close to Home

Another aspect of collective giving that sets it apart is its ability to uplift local communities. With 88% of philanthropic funding going to the top 5% of nonprofits (Dorothy A. Johnson Center for Philanthropy), smaller charities often get overlooked—but not in giving circles. These groups champion smaller nonprofits and community organizations, focusing on grassroots initiatives that make a difference.

Whether it’s a small group meeting in someone’s living room or a larger nonprofit-led collective, nonprofits can use this strategy to keep things personal, mission-driven, and impactful. If you have a donor with a heart for a specific project, leading them toward collective giving is a powerful way to engage them on a deeper level. 

Women Are Changing the Game

Women have always played an important role in philanthropy and collective giving is no exception. Giving circles tend to be dominated by women with 70% of all giving circle members being women. Women-only giving groups have grown from 53% in 2006 to 60% in 2023 (Bearman, 2007; Eikenberry et al., 2017). 

Building Together

The heart of collective giving lies in collaboration. Working together, sharing resources, and reimagining how we make an impact is exactly what many faith-based organizations aim to do. As this movement continues to grow, it’s clear that collective giving isn’t merely another trend; it’s a powerful way forward for philanthropy. This powerful way of engaging your giving partners is one we suggest considering how to incorporate into your donor development strategy if you haven’t already.

Ready to take action? If you need fresh takes on how to implement collective giving, we’re here to help! 

Book a discovery call with us, and let’s explore how we can make this strategy work for your unique mission and donors.

Or if you’d like to better understand how collective giving looks from a donor’s experience listen to this podcast where Josh and Kaitlin Saenz, founders of Compel You, share how they were invited into this transformative way of giving.