4 Benefits of Connecting With Latino Giving Circles for Nonprofits

As donor numbers and donations continue to decline, nonprofits are seeking ways to increase their fundraising success. One potentially viable solution is to connect with giving circles.

For the unacquainted, giving circles are a form of collective giving that comprises donors who have a common philanthropic interest. These groups enable members to pool their resources to support nonprofits that align with their goals. For instance, the Latino Giving Circle Network is a group of Latino giving circles in California that supports causes focused on issues affecting the Latino community in those areas.

Recently, the Latino Giving Circle Network released its “Philanthropy with Purpose: The Transformative Benefits of Latino Giving Circles” report, which compiled information from two surveys and four pláticas (discussion groups) across more than 400 network members. The findings highlight the impact of Latino giving circles — both on their members and on philanthropy in general. Here are four takeaways for nonprofits.

1. Latino Giving Circles Can Elevate Small Nonprofits

One thing the Latino Giving Circle Network emphasizes in its philanthropy is identifying organizations that look like and serve its communities. In fact, 51% of organizations’ boards and staff must be Latino in order to be considered for support from any of the circles within the network, Sara Lomelin, CEO of Philanthropy Together and one of the creators of the Latino Giving Circle Network, said.

“Also, the Latino Giving Circle Network — not 100%, but most of the time — tends to focus on very small, grassroots nonprofits that have maybe, you know, budgets of less than $500,000 or $1 million,” she said.

Because of these criteria, investment from these giving circles can help boost the success of smaller nonprofits.

“That is the beauty of the Latino Giving Circle Network,” Lomelin said. “Literally, [these giving circles] were those first angel investors, if you want to see it like that — seed funders of tiny nonprofits. And after being supported by one of the giving circles or a couple of the giving circles in the network, [the nonprofits] got to a bigger level and they were able to leverage funding from corporate or from a bigger foundation, etc., etc., and have a lot more visibility.”

2. Latino Giving Circles Foster Community Engagement

In the report, 72% of respondents said being part of the Latino Giving Circle Network had a positive impact on their wellness. Because Latinos place high importance on community, the giving circle network model of philanthropy fits into these donors’ social needs, as well as encourages them to become an engaged part of a nonprofit’s community.

“It resonates a lot with Latino culture,” Lomelin said. “At the same time, it is extremely transparent, because you're not giving blind. You are really learning about different causes, learning about the organizations, building relationships — not only with the people in the circle, but also with the nonprofit leaders on the ground. You get to visit the organization. So, it's a lot more of a complete experience in philanthropy than just giving as an individual.”

Lomelin also mentioned that Latinos’ connections with others outside of their giving circles can have an impact on nonprofits as well.

“You're part of the people in your office, you are part of your cousins, your neighbors, your high school friends,” Lomelin said. “And the doors that you can open to those organizations, to those nonprofits that you care about, with your different networks are a lot of times more impactful than the money that you can donate.”

3. Latino Giving Circles Empower Further Philanthropy

While the Latino Giving Circle Network gives members the opportunity to make an impact through collective giving, the report also showed that members were inspired to take their philanthropy a step further.

Members most frequently reported giving money to nonprofits outside of their giving circle donations (66%). They also reported volunteering their time and talents in the following ways:

• 39% said they provided public relations, marketing, technology, financial, legal or accounting support.
• 51% said they provided fundraising support, such as making introductions with other donors.
• 46% said they participated on boards or other governing or advisory bodies.
• 52% said they volunteered in other ways.

“They're not the people who are going to be passive, you know, writing a check,” Lomelin said. “It's really a group of people that are civically engaged, that want to roll up their sleeves and volunteer in your organization. They can be the pipeline of your next board members. They are going to be the ones coming on a Saturday to help you with your database. They are going to be the ones that will go to your events that will help you get people registered to vote.”

Members of Latino giving circles often did not stop their philanthropy after their giving circle contribution. | Credit: "Philanthropy with Purpose: The Transformative Benefits of Latino Giving Circles" by Latino Giving Circle Network

4. Latino Giving Circles Push for Change, Not Charity

Many Latino Giving Circle Network members have witnessed discrimination firsthand, whether it be xenophobia, racism or some other form of oppression, according to the report. Because of this, these donors are compelled to make a change, and they see being part of a giving collective as a more powerful way to do this. As evidenced by the report, 76% of respondents said they were in the Latino Giving Circle Network to “support Latino-led organizations in a more thoughtful and strategic way.”

In short, being part of a giving circle enables Latino donors to make a bigger difference. For nonprofits, this means that working with a giving circle can give them access to excited, engaged donors who want to work toward a mission, and not just contribute financially.

“For a lot of Latinos, we are always invisible to philanthropy,” Lomelin said. “People see us as recipients of philanthropy, but not as philanthropists. So this is a very good way of changing that narrative.”