Coming Full Circle

A new trend in philanthropy encourages group giving

AOL time warner has found a new way to help its employees get to know each other better while doing something meaningful: It’s bringing them together in small groups to pool their money—anywhere from $25 each and up—and then give it away. The groups are called giving circles, and in helping to form them, AOL has jumped aboard one of the hottest new trends in philanthropy.

In the broadest sense, giving circles operate a lot like investment clubs. Each member of the group contributes a set amount, then the group works together to research the market,choose a strategy, and make decisions on how to invest the money. But the market a giving circle studies and invests in is not the stock market; it’s the needs of the local community and the organizations that are trying to meet those needs. And in most cases, members invest not just their money, but their time and energy, to help ensure the success of the organizations to which they make grants.