Collective giving, also known as collaborative philanthropy or pooled funding, is where funders come together to pool their financial resources, knowledge, and expertise to make strategic philanthropic contributions. Through collective giving, participants combine their resources to support charitable causes, projects, or organisations, amplifying the impact of their donations and fostering a sense of community and shared purpose.
There are numerous ways to get involved in collective giving, either via your giving fund or PAF, or separate from your structured giving.
"It’s a great way to make sure your giving dollar goes further… When your $10,000 becomes $700,000, suddenly the impact becomes much more significant."
Hayley Baille, Baillie Family Foundation
Collaborative & membership organisations
There are a number of membership organisations designed to provide support to funders. Membership organisations in Australia include (but are not limited to) the following:
Joining one or more, depending on your interests, can unlock numerous benefits including:
Networking and collaboration: They are a platform for philanthropists to connect with like-minded individuals, foundations, and organisations. Members can engage in discussions, share experiences, and collaborate on projects, fostering a sense of community and collective impact.
Learning and knowledge sharing:They offer educational resources, workshops, and conferences focused on giving and allow members to expand their knowledge, learn about emerging trends, and gain insights from experts in the field.
Collective influence and advocacy: They provide a unified voice for givers to advocate for social, environmental, or community causes. By pooling their resources and expertise, members can collectively address systemic issues, promote policy changes, and advocate for social justice.
Access to funding opportunities: They often serve as intermediaries, connecting donors with worthy projects and organizations in need of support. They often facilitate the vetting process, provide due diligence through expert staff, or match funders with projects aligned with their interests and priorities.
Make sure you check with your Adviser if you are considering joining a membership organisation through your PAF or Giving Fund, to ensure it is eligible.
Giving Circles
‘Giving circles’ (also known as ‘giving groups’) are a form of collective giving that has been gaining momentum in Australia over the past decade. This participatory model involves donors making a contribution– ranging from $100 to $10,000 per annum – into a pooled fund, then educating themselves about community issues through social events, seminars and other activities. The multiple benefits of giving circles are similar to those for membership organisations and include:
Financial benefits include the pooling of resources to make larger and more impactful grants, often to grassroots charities, than you might be able to achieve individually.
Social benefits include a sense of community and connection among members who share a common philanthropic interest or goal. Giving circlesfoster peer learning and the opportunity to actively participate in the decision-making process through research, evaluation and collective selection of organisations to fund.
Impact benefits are linked to the ability to leverage greater funding, thereby addressing complex social issues, support larger-scale projects, or provide multi-year funding, leading to transformative outcomes.
Personal benefits may include the opportunity to provide pro-bono support or skills to a charity or mentoring opportunities for Next Gen members by other Giving Circle members.
"The events themselves are very powerful. By getting our members together in a room, where they listen to a charity representative telling their story – that galvanises donors in a big way. I’ve seen our donors become directors of local charities, become mentors or volunteers, or use their networks more effectively to help charities connect with other charities. The knock-on effect of collective giving is enormous, and it’s about a lot more than just money. "
Kate Stock and her father Geoff Day, Day Family Foundation
Community Giving Circles
Community Giving Circles typically focus on place-based giving to various charities and causes. Their entry points are lower – from $100 to become a member, and members vote on the charities they want the giving circle to support.
Typically, the giving circle committee will conduct thorough due diligence and provide coaching before, during, and after a funding event, which ensures great organisations are being funded and charities benefit from the experience of applying for funding.
In addition to the benefits detailed above, many APS clients use their community giving circle as a source of local grassroots charities they can fund through their structure.Note however, that not all community giving circles have DGR1 status, which means they may not qualify as eligible charities for your PAF or giving fund.
Make sure you check with your Adviser if you are considering joining a giving circle through your PAF or Giving Fund to ensure it is eligible.
"Impact100 is the most amazing source of suggestions for suitable donation recipients. All the due diligence is already done, the organisations have already outlined and substantiated their needs, and there is a good rapport established for donors to build on. The charities shortlisted are local organisations making a difference in the community we live in – so we can see, touch and feel the difference."
Paul and Sophie Chamberlain, Directors Day Family Foundation
Single charity giving circles
Many charities have their own giving circles. APS can provide a list of those known to us in your causes of interest.
The Day Family Foundation also actively seeds giving circles as a creative way of extending their support for some of the organisations they support. ‘Where a charity we’ve supported is interested in establishing a giving circle, in some cases we have offered up a matching grant – typically $10,000 to $15,000 a year for three years to that charity – to help attract initial giving circle members. We’ve done that with JusticeNet SA and Young Adelaide Voices and the 2H project. Matching funding to help grow an early-life giving circle is a very effective way to get other donors on board to support a charity you already love.’ Geoff Day.
APS Giving Circles
In 2023 APS established our first giving circle for clients, The Bloom Funding Circle. Focused on giving in the environmental space, the group is partway through a 3 year commitment to fund Regen Studios.the APS team works with Regen Studios to provide regular updates on funding and opportunities to attend exclusive funder events.
In future, we will provide options for both placed-based and cause-focused giving circles. If you have an interest in joining or leading a giving circle with other APS clients, please get in touch with your Adviser or our Head of Philanthropic Giving, Kate Stone at kstone@australianphilanthropicservices.com.au.