The Chronicle of Philanthropy recently shared that “giving circles” are becoming increasingly popular with young people and minorities. Just this week I heard about a group of kids in Flint who pool their dollars to make microgrants in their neighborhood. When I joined Lansing’s Underground of Good, the group was primarily young local professionals, formed by a group of young people who wanted to “take their love for greater Lansing to the next level.”
Giving circles let informal groups of people become philanthropists, combining donations to make a larger investment in their community. And they let folks who aren’t traditionally thought of as philanthropists break the stereotypes and direct their contributions into areas where a larger grant-making institution may not see a need.
At Underground of Good events, attendees throw a cause into a hat. Your cause must be a local 501(c)(3) nonprofit, not related to politics or religion, and the organization must agree not to use donors for future solicitations or share their names with the public. Three organizations are drawn, and if one of them is yours, you have up to five minutes to convince the group that your cause is the most worthy. When the pitches are complete, the group votes via secret ballot to determine which of the three organizations will receive a $100 check from each of the attendees. Majority rules — you are required to donate to the group receiving the most votes.
The group meets quarterly, and each event has a theme. This week, we pitched education organizations and programs. Previously, we funded placemaking organizations. I heard a rumor that the next event may focus on mentoring programs.
If you plan on being part of the group, you are asked to join for a year. $400 a year is nothing to sneeze at, and I know people who would like to participate but for whom the cost is prohibitive. (The Awesome Foundation in nearby Grand Rapids requires $100 each month. Please consider starting your own group with smaller requirements if you’re interested in a giving circle but need a smaller buy-in!) Also, groups like this require you to put a lot of trust in your peers. You may wind up donating $100 to a cause you’ve never heard of, or something that isn’t on your priority list. At the first meeting I attended, my name wasn’t drawn, but my cause (the Robert Busby Memorial Garden) was pitched by another member of the group, and it was chosen for funding. At the second event, I wrote a check to an athletic group (the youth soccer program at Lansing Refugee Development Center); I found myself voting for it, and ordinarily sports don’t interest me at all. This week, we donated to Fenner Nature Center’s Youth Leadership Program, and while this wasn’t the group I was pitching, this wasn’t the first time I’ve written a check to Fenner. On all three occasions I felt really good about my donation, and it was exciting to know that the pooled contributions could make a real difference to the chosen organization.
The more of us who participate in the Underground of Good, the more we can contribute to our local nonprofits! Follow their Facebook page for upcoming events.