Using Giving Circles in diaspora giving
Increasingly non-profit organizations are seeking the expansion of their donor base by reaching out to diaspora who will support causes in theri country of origin or among their own ethnic group in their adopted home country. Laura Zylstra explains how Giving Circles can help reach these groups.
Discussions of national identity and origin often frustrate common definitions and raise heated debates. In this case, there is an ongoing debate regarding the definition and use of the word ‘diaspora’ to describe those who live outside their country of origin. The author recognizes this debate, but because of limited space and for the purpose of this article the word ‘diaspora’ will include expatriates, immigrants and other non-resident groups, first and second generation members from a diaspora family, and anyone else with strong ties to a specific ethnic community.
While there is a growing body of research on diaspora philanthropy, patterns and trends, there has been limited study of techniques that work for successful fundraising from diaspora communities. So in this article we’ll just look at one of the myriad ways that some non-profits have expanded their donor files and diaspora communities have increased the impact of their philanthropy – giving circles.
Organizations working internationally and seeking to increase diaspora donations often try to establish diaspora connections by communicating their programme activities and impact in the diaspora donor’s country or community of origin. But there are often enormous needs within immigrant communities, too. These needs are largely overlooked and underserved by traditional funding channels and increasingly diaspora (and first and second generation immigrants), are reaching out in response to support organizations that help underserved members of their own communities.
The group Asian Giving Circle describes a giving circle as “a highly participative form of collective philanthropy in which members increase their impact of pooled charitable dollars.” Groups of individuals organize themselves to pool financial resources and collectively decide where and how to donate their money. Giving is typically targeted to causes in the city where the giving circle originates.
Giving Circles differ from Hometown Associations in that giving circles support projects in the donor’s community in their country of residence, while hometown associations can support projects in both the donor’s community in their country of residence and/or their home community in their country of origin.
Giving Circles have become increasingly popular throughout the United States within the last 10 years. According to the Giving Circles Network, there are an estimated 800 giving circles in the United States, and they are gaining popularity within Asian communities. While the composition of giving circles varies, they share some common characteristics:
• Giving Circles provide opportunities to network and socialize with others.
• Members educate themselves about issues affecting those in their local ethnic communities and programmes addressing the needs.
• Members pool money, time and/or in-kind contributions and decide together where and how their money will be allocated – some groups grant funds throughout the year as funds are collected while others build up endowments.
• Asian American giving circles are composed of a mix of ages and backgrounds, but members tend to be well-educated, young, urban and professional. Members are often first or second generation immigrants.
• Group sizes vary widely, ranging from a few members to over 100.
• Giving circles may choose to organize as a donor-advised fund and have assets managed by a community trust or foundation.
Some nonprofit organizations are approaching giving circles to solicit support. Others are linking with diaspora populations in their service area to organize their own Giving Circles. For example, the Asian Giving Circle (AGC), based in Chicago, IL, was created in 2002 by three Asian American-serving nonprofit organizations. In addition to contributions made to the three charter organizations, AGC has awarded grants to a wide variety of other organizations serving the more than 30 different Asian ethnic groups in the city.
Giving Circle members advise nonprofit organizations to consider the following when approaching or initiating a giving circle:
1. The organization’s mission and projects should be compatible with the giving circle’s interests
2. There must be cultural understanding of the member’s ethnic community and its issues
3. Members are busy professionals with limited time so keep engagement simple and meaningful
4. Connecting with diaspora donors takes time and is all about building relationships
To learn more about giving circles check out the following resources: The Giving Circles Network (www.givingcircles.org), ‘Asian American Giving Circles: Building Bridges Between Philanthropy and Our Communities’ by Andrew T Ho of the Council on Foundations, and ‘The Impact of Giving Together: Giving Circles’ Influence on Members’ Philanthropic and Civic Behaviors, Knowledge and Attitudes,’ and ‘Ten Basic Steps to Starting a Giving Circle’, both by the Forum of Regional Associations of Grantmakers in the US.
Laura Zylstra is a fundraising consultant and principal of Zylstra Fundraising Counsel in the US. She has worked with organizations including WWF, the International Rescue Committee, Meridan International Center, UNHCR and Habitat for Humanity International in direct marketing, capital campaign management and strategic planning. She also spend several years in South Asia developing Habitat’s groundbreaking Global Funding Initiative, significantly increasing grassroots fundraising at national and affiliate levels. She will be presenting a workshop ‘Best practices in diaspora fundraising’ at the 29th International Fundraising Congress in the Netherlands 20-24 October 2009.
