Podcast Summary: Nonprofit Lowdown #312 - Giving Circles and the Future of Philanthropy with Emily Rasmussen
Introduction to the Episode
In episode #312 of Nonprofit Lowdown, host Rhea Wong engages in an insightful conversation with Emily Rasmussen, the founder and CEO of Grapevine. The episode delves into the concept of giving circles and explores their burgeoning role in shaping the future of philanthropy.
Emily Rasmussen's Background and Grapevine
Emily Rasmussen shares her unconventional journey leading to the creation of Grapevine. Transitioning from a professional ballet dancer to pursuing international relations and economic development, Emily's diverse experiences culminated in her passion for community-driven financial empowerment.
"I was fortunate to be there during the time when microfinance was really all around and was really celebrated as a great model for economic development. And that was my initial inspiration to get into this kind of community-driven movement..." (01:40)
Recognizing the potential of technology in philanthropy, Emily pursued business studies and eventually founded Grapevine in March 2020. Grapevine emerged as an alternative to traditional crowdfunding, specifically catering to the needs of giving circles.
Understanding Giving Circles
Emily provides a clear definition of giving circles, emphasizing their collective approach to philanthropy.
"It's about a group of people that come together to connect with each other, to pool their donations, and to collaborate to make a larger collective gift as a group." (04:33)
She highlights the power of recurrent community-based giving, fostering both financial impact and enduring relationships among donors.
Donor Community vs. Donor Lists
A significant portion of the discussion revolves around the distinction between merely maintaining a list of donors and genuinely building a community among them.
"A community by nature of a community is not about you managing a list... It's about enabling those donors to connect with each other." (05:25)
Emily criticizes the traditional approach of one-on-one relationship building, advocating instead for a scalable, community-centric model that empowers donors to engage with one another, thereby enhancing retention and fostering a sense of belonging.
Leveraging Community Models for Nonprofits
Rhea Wong aptly describes the community model as a "leveraged model," especially beneficial for understaffed nonprofits.
"Community members supporting each other and not being dependent on that one staff member feels like a really powerful model." (07:54)
Emily concurs, explaining how this approach not only builds a supportive network among donors but also complements major gift strategies by integrating a diverse range of contributors.
Everyday Philanthropy and Democratizing Giving
The conversation shifts to the democratization of philanthropy, making it accessible to everyday individuals rather than the traditional high-net-worth donors.
"This concept helps to democratize philanthropy... like neighbors helping out neighbors." (10:21)
Emily underscores that philanthropy extends beyond monetary contributions to include time, talent, testimony, and ties—collectively termed the "five T's of philanthropy." Giving circles naturally embody these elements, enabling a multifaceted approach to community support.
Giving Circles and Trends in Philanthropy
Addressing current philanthropic trends, Emily highlights that giving circles have become the fastest-growing form of philanthropy, with over $3 billion donated by everyday people.
"Giving circles are seen as the fastest growing form of philanthropy... donating more than $3 billion to nonprofits." (16:11)
She posits that giving circles serve as an inclusive entry point for individuals who might not identify as traditional philanthropists, thereby expanding the donor base and enhancing overall giving sustainability.
Engaging Younger Donors through Giving Circles
Emily observes that younger generations, such as Millennials and Gen Z, are particularly receptive to the giving circle model due to its community-oriented and flexible nature.
"We're definitely seeing that resonating with the next gen and they're adopting but also adapting the model to fit them." (17:56)
This adaptability makes giving circles an effective tool for engaging younger donors who seek more involvement and tangible impact from their philanthropic efforts.
Inclusivity in Giving Circles
The discussion emphasizes creating financially inclusive giving circles, ensuring participation across various economic levels.
"We're seeing more financially inclusive approaches... just say whatever you can contribute, up to you." (26:51)
Emily provides examples of innovative models where members can pool resources or contribute based on their capacity, thus lowering financial barriers and fostering a more diverse and representative community of givers.
Philosophical Impact of Giving Circles on Social Fabric
Rhea poses a philosophical question regarding whether giving circles, which bring like-minded individuals together, might exacerbate societal divisions or instead strengthen social cohesion.
"Does that exacerbate the existing divisions in the country or are we, do we help knit the social fabric?" (18:53)
Emily responds optimistically, arguing that giving circles create spaces for meaningful connections around shared interests, which can bridge differences and enhance mutual understanding.
"They provide people a space to build meaningful connections with others that align around a particular thing." (19:10)
Models of Giving Circles
Emily categorizes the primary models of giving circles into three types:
- Grassroots Community-Based: Initiated by local volunteers who gather individuals around a common cause.
- Nonprofit-Led: Organized by specific nonprofits to support their missions.
- Corporate Foundations: Facilitated within workplaces, often aligning with employee resource groups (ERGs) to promote corporate philanthropy.
"There are definite subgroups under these... whether it's based on ergs or community interests." (21:29)
Each model offers unique avenues for engagement and impact, catering to different organizational structures and community needs.
Managing a Giving Circle as a Nonprofit
Addressing the practical aspects, Emily advises nonprofits on the time and resources required to sustain a giving circle.
"Once you get your group up and running and into a steady state, that you're investing a couple of hours a week." (23:55)
She emphasizes the importance of leveraging tools and volunteers to facilitate engagement, reducing the burden on staff while maintaining active participation and growth.
Decision-Making Within Giving Circles
A common concern addressed is the autonomy of nonprofits in directing funds raised through giving circles.
"Most often we see those are general Operating support... supporting you to continue doing this wonderful work." (30:08)
Emily notes that while some giving circles prefer to grant unrestricted funds to allow nonprofits flexibility, others may involve members in decision-making to allocate funds to specific projects, depending on the circle's objectives and structure.
Conclusion and Final Thoughts
In her closing remarks, Emily Rasmussen underscores the significance of the giving circle movement and its potential to revolutionize philanthropic engagement.
"This is an exciting movement and it's worth taking a little time to learn more about." (32:36)
She encourages nonprofits to explore giving circles as a sustainable fundraising strategy, either by joining existing circles or establishing their own to foster deeper community connections and expand their support base.
Notable Quotes:
- "Giving circles are seen as the fastest growing form of philanthropy." — Emily Rasmussen (16:11)
- "It's about enabling those donors to connect with each other." — Emily Rasmussen (05:25)
- "This concept helps to democratize philanthropy... like neighbors helping out neighbors." — Rhea Wong (10:21)
Learn More
For nonprofits interested in exploring giving circles, Emily Rasmussen recommends visiting Grapevine for resources and support in establishing and managing effective giving circles.