Collective Giving, Give it a Try

If you could turn $1,000 into $100,000 in one year, would you? Most people assume a return like that is impossible, at least in the traditional financial sense, but there is a place in the charitable world where this kind of impact-driven return happens. I’ve experienced it more than ten times in recent years through collective giving organizations in my community. 

The key word for me in these transactions has been “impact”, not only in the Organization I’m involved in, Impact100 Martin and Impact the Palm Beaches, but also in the effect my contributions have on the charities receiving the funds. Let’s focus for a minute on my $1,000. If I give these funds to an organization locally, I’m confident they are grateful, but I’m also fairly certain I have not moved the needle much in their mission and programing. Many individuals and families aren’t (yet) financially equipped to make significant individual gifts that move the needle on their own. However, when I band together with a hundred other people, each contributing the same amount, we can move that needle and have a true “impact”. From a planning perspective, this is often where philanthropy becomes more intentional, aligning available resources, personal values, and community outcomes rather than giving in isolation. 

Collective giving is not a new concept, but it is growing by leaps and bounds, especially with women, although not exclusively. The 2023 report, In Abundance: An Analysis of the Thriving Landscape of Collective Giving in the U.S. illustrates the that “between 2017 and 2023, nearly 4,000 collective giving groups mobilized approximately 370,000 philanthropists to donate more than $3.1 billion.” The previous study from 2017 had more than 1,600 groups with more than150,000 philanthropists, contributing approximately $1.29 billion to communities. That’s more than double in 6 years and the current projections have these figures on track to double again in the next 5 years. 

Think about the organization you work with or contribute to. What could $100,000 do for them? In my experience, I have seen substantial change occur with funding at these levels. The funds have gone to local organizations serving the communities where I work and live. The study referenced above also noted that “77% of survey respondents reported that their group prioritized organizations with leadership that reflects the community in which they serve, a figure that indicates groups’ recognition of centering lived experience as pivotal from community change.” 

My introduction to this type of giving was somewhat accidental. I overheard some women talking at a local networking event about the grants process they were going through for another organization. The concept immediately struck me as brilliant. 100 women, $1,000 dollars each, $100,000 grants. With my prior experience in the nonprofit world, I knew what $100,000 could mean for the organizations in our community. I immediately inquired more and helped start a new chapter for the same group in another city. That was just the beginning though. The more I learned, the more I wanted to do more. There are so many collective giving groups around. The dollar amount, membership and focus varies, but the concept is the same, lets pool our resources to effect real change. 

Beyond the ROI on my contribution, there are so many additional benefits to this type of giving. Specific to my experience, I have teamed up with like-minded people who want the same things for our community as I do. I have fostered new connections and friendships with people I may not have otherwise found. The survey references this as a major benefit stating that “82% of members joined looking to build relationships with others who share similar values and/or identities.” In addition, I have grown my level of education and engagement in what is going on in the community. I’m consistently learning more about the needs in our community and discovering the organizations, many of which are smaller grass roots organizations, that are serving those important needs. Apparently, I am not alone in this feeling as “a notable 72% of members reported that their participation enhances their comprehension of philanthropy, highlighting the transformative potential of these groups.” I’m also getting the opportunity to participate in the democratic process of giving, on a level playing field, where all members of the group are seeking the same outcome, impact. 

For many people, collective giving becomes part of a broader conversation about legacy, how they want their resources to shape their community during their lifetime, not just someday in the future. Philanthropy is one component of a holistic financial plan, and collective giving can be a powerful way intentionally align values with impact. There are so many ways to get involved in your community, giving of your time, expertise and/or funding. I encourage you to seek out like-minded individuals and see if collective giving is an avenue for you to effect long-term change. If a group does not exist near you, get one started. There are incredible resources locally and nationally to support this type of giving. I continue to explore new ways to engage in this type of giving and to learn from the communities doing this work well. I’m excited for what the future holds for our communities, especially when we take the time to be intentional, aligning our resources, values, and giving so we can create meaningful change together.