Collective giving is on the rise as a growing force in US philanthropy, suggesting that it can move resources in ways that traditional philanthropy does not. 

That’s according to a new report released by the US-based Johnson Center, Colmena-Consulting, and Philanthropy Together. 

Collective giving is, as defined by the report authors, ‘a form of philanthropy that draws upon the traditions of mutual aid and solidarity among marginalised communities’. 

Collective giving involves individuals pooling their resources, knowledge, and networks together to support a cause collectively chosen by the group. Democratic decision-making is typical of collectives. 

Today, some 4,000 groups contribute over $3.1 billion — more than double versus seven years ago. 

In 2015, over 150,000 philanthropists within 1,600 groups distributed about $1.29 billion through the collective giving movement. 

‘The movement is now on a trajectory to double again in the next five years, underscoring its growing appeal and potential to profoundly reshape the philanthropic landscape,’ said the report.  

The racial diversity is increasingly diverse, while collective giving is mostly led by women.  

Collective giving is actively shifting the narrative around who is considered a ‘philanthropist’, says the report.  

‘With the growth of efforts to organise donor bases that mirror communities, collective giving emerges as an important approach that effectively involves donors from historically marginalized groups and communities,’ the report added.  

Collective giving groups give to community based groups and is heavily invested in taking a localised approach with ‘place-based philanthropy’.  

The Black Funding Network, a membership organisation of grassroots led organisations that focuses on collective giving, said it hopes to see the trends grow in the UK and internationally.  

Shafi Musaddique is the news editor at Alliance magazine