Utilizing Philanthropy Circles to Diversify and Remediate Higher Education and Philanthropy

Philanthropy Circles

Philanthropy circles are a relatively new identity-based fundraising model emerging in higher education institution settings that form collective identities and shared commitments to raise money and unify identity-based higher education constituents in a way that remediates the historic and systemic inequalities associated with philanthropy and higher education. Philanthropy circles create a welcoming space that meets diverse donors where they are and caters to their unique experiences to advance underrepresented populations. 

Philanthropy circles provide early and lasting commitment from diverse demographics, foster giving in times of crises, and facilitate collective giving that 1) creates a greater sense of community, 2) empowers groups with shared identities and values to fund more relevant and representative initiatives, 3) amplified giving, and 4) creates a welcoming and motivating space for demographics historically excluded from higher education philanthropy. 

A Case Study of Indiana University Foundation 

To better understand philanthropy circles, research was conducted at Indiana University, a trailblazer in the field. At the Indiana University Foundation, there are currently three philanthropy circles, Black Philanthropy, Queer Philanthropy, and Women’s Philanthropy. These existing philanthropy circles provide grants and scholarships that reallocate funding to initiatives that improve the university experience of minority students and acts as key equity intervention tools to improve enrollment, retention, and participation of historically and systemically underrepresented demographics at Indiana University. Beyond financial support, philanthropy circles deliver resources, belonging, independence, and engagement to donors and the larger university community, fostering a collective commitment that seeks to remediate historic and systemic disenfranchisement. 

Early Success of Philanthropy Circles at Indiana University

Philanthropy circles at Indiana University display early successes implying a willingness from donors to participate and a likelihood of future engagement. 

Figure 1. Giving Circle Initial Success Correlation

Figure 1 illustrates the gifts, by percent revenue of total non-major gifts, to all three programs over the first three years of revenue. It can be concluded that membership revenue, though it may appear to decrease in the second year, plays a role in the revenue of each philanthropy circle, though not its primary source of revenue. 

Benefits of Utilizing Collective Giving Models

Beyond immediate and obvious financial success, philanthropy circles cultivate collective giving, which has several distinct benefits. The first benefit being its ability to create a greater sense of community. According to interviewees, “Philanthropy Circles create communities that advocate and serve communities” and “[philanthropy circles] build community and expose others to new communities” (Interviewee #3). Collective giving is not only recorded as a motivator for giving but extends philanthropic impact to younger communities of donors. One interviewee shares, “first hand from donors, the collective aspect is what motivates them to join, younger members especially” (Interviewee #2).

The second benefit is the ability to empower groups with shared identities and values to fund more relevant and representative initiatives. One interviewee expressed, “Women tend to, when provided, give together, common cause, common issues,” indicating identity matters when giving and when provided the opportunity to unite with those with shared identities and values, donors respond well to collectively giving (Interviewee #1). Shared identities and values additionally result in shared priorities, like women choosing to support common causes/issues, an interviewee describes their experience as, “Collective giving allows us to agree on what we want to support together” further iterating that shared values result in shared giving thus shared impact (Interviewee #3). 

The third benefit of collective giving is the amplification of giving. Interviewees expressed, “They know their dollars are amplified,” “[Philanthropy circles] it’s harnessing limited resources to amplify current projects so their impact can be multiplied,” and “Pooling money allows us to make things possible that otherwise would not be,” all of which implies the utilization of resources in a collective manner amplifies overall impact (Interviewee #1; Interviewee #2; Interviewee #4).

A final benefit of collective giving is its ability to create a welcoming and motivating space for demographics historically excluded from higher education philanthropy. Interviewees state, “As we seek to diversify the donor base at IU… [collective giving] builds trust among populations that may have felt excluded or had inconsistent experiences with the university” and “It’s [philanthropy circles] a new and innovative ways to give excite donors” (Interviewee #2; Interviewee #5). These quotations provide insight into the inclusive nature and remediation efforts philanthropy circles provide in an attempt to empower historically underrepresented donors in higher education philanthropy. 

So What?

Philanthropy Circles at Indiana University have demonstrated key identifiers such as early success, longevity, community-building, and feelings of increased impact, all of which are necessary for successful philanthropic endeavors. Though successful identity-based collective giving has occurred for decades, our research shows they have high potential for success in university settings. Identity-based philanthropy circles provide higher education development institutions to flip philanthropy on its head and meet donors where they are as a means to diversify and remediate higher education and philanthropy. 

Hannah Fry is a senior at the Indiana University O’Neill School of Public and Environmental Affairs.