Effective Giving Archives | The Giving Advisory

Giving to charity is often driven by a desire to help others. But with thousands of organisations addressing different social and environmental challenges, deciding where to donate can be difficult. Effective altruism offers one approach to this decision. It encourages donors to use evidence and careful reasoning to understand how their contributions can create the greatest positive impact.

For everyday donors, effective altruism does not necessarily mean giving more. Instead, it can mean making more informed decisions about where and how to give.

What is effective altruism, and how does it influence charitable giving?

Effective altruism is a philosophy that focuses on using evidence and reasoning to determine how individuals can do the most good. In charitable giving, this means looking beyond the intention to help and considering the outcomes a donation can achieve.

Traditional giving may be influenced by personal experiences, proximity or emotional connections to a cause. These factors can be meaningful. However, an effective altruism approach also asks questions such as: What problem is the charity addressing? How effective is its approach? How much additional impact could another donation create?

This approach has contributed to a growing interest in evidence-based giving and evidence-based philanthropy. Donors can consider research, impact evaluations and other available evidence when assessing charities and their programs.

Effective altruism is therefore not simply about donating to the largest charity or the most popular cause. It is about considering the relationship between resources, interventions and outcomes. This can help donors think more strategically about effective charitable giving, while still allowing personal values to guide the causes they support.

How can everyday donors use effective altruism to make their donations more impactful?

Everyday donors can apply the principles of effective altruism without making philanthropy complicated. A useful starting point is to identify the causes that matter most to you and then consider how your donation could contribute to meaningful change.

One option is to research charities before donating. Look for information about their programs, objectives and results. Consider whether the organisation measures its outcomes and explains how it uses donations.

Donors can also consider cost-effectiveness. A relatively small donation may have a significant impact when directed towards an intervention that is well researched and efficient. This is one reason high-impact giving focuses on the outcomes achieved rather than simply the amount donated.

However, impact is not the only consideration. Donors may value local communities, environmental causes, medical research, education or other areas for personal reasons. Effective giving can work alongside these values. The goal is to make giving more informed and purposeful, rather than removing the personal element from philanthropy.

For donors with more substantial philanthropic resources, this approach can form part of a broader giving strategy. A philanthropic adviser can help individuals consider their objectives, values and desired social impact when developing a structured approach to giving. This may include direct donations, structured giving vehicles such as Public Giving Funds or Private Giving Funds, or other forms of strategic philanthropy.

How can donors evaluate charities and determine where their donations will have the greatest impact?

Evaluating a charity requires looking at more than its reputation. Donors should consider several factors when assessing potential organisations.

Start with the problem. Consider the scale of the issue and the people or communities affected. A significant problem may offer greater opportunities for meaningful intervention.

Examine the organisation’s approach. Look for evidence that the charity’s programs are addressing the problem effectively. Information about research, evaluations and measurable outcomes can help donors understand the potential charitable impact of their contribution.

Consider cost-effectiveness. Ask what additional impact could be achieved with another dollar. Two charities may work towards similar goals but achieve different outcomes with the resources available to them.

Look at transparency. Financial reporting, governance information and clear explanations of programs can help donors understand how an organisation operates and uses its resources.

Consider additional funding needs. A charity may have strong programs but limited opportunities to use additional donations effectively. Donors can ask whether further funding will enable the organisation to expand an effective program or address an unmet need.

These considerations can help donors make more informed choices. They also highlight why there is no single list of universally “best” charities. The right choice depends on the donor’s values, objectives and understanding of potential impact.

How The Giving Advisory Can Help

Effective altruism provides a useful framework for thinking about charitable giving. By combining personal values with evidence and careful consideration of outcomes, donors can take a more purposeful approach to philanthropy.

At The Giving Advisory, we understand that initiating and maintaining conversations about giving in the family can sometimes be challenging. Our services team is here to help guide your family through the process of family philanthropy, whether you’re starting a donor advised fund, planning your first charitable contribution, or seeking advice on how to align your giving with your family’s values.

If you want to learn more about how to engage your family in giving and create a lasting philanthropic legacy, contact us today. We’re here to help you reach your philanthropic goals and make a positive impact together.

This information is general advice only and does not take into account your objectives, financial situation and needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your needs, objectives and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice.

Brad Seeto

Philanthropy is evolving in Australia, with more people looking for meaningful and collaborative ways to support the causes they care about. One model that has gained significant momentum in recent years is the giving circle. By bringing together a group of people with shared values and a common interest in creating positive change, giving circles offer an accessible and engaging approach to charitable giving.

Unlike traditional donations made by individual donors, collective giving allows participants to pool their resources, knowledge, and networks to achieve a greater impact. Whether formed among friends, families, work colleagues, women’s networks, or community groups, giving circles are helping to democratise giving and make philanthropy more accessible to more Australians.

So, how do giving circles work, and why are giving circles growing in Australia? Understanding the structure and benefits of this collaborative model can help donors determine whether it aligns with their philanthropic goals.

What Is a Giving Circle?

A giving circle is a form of collective giving where a group of people pool money and decide together how those funds will be distributed to charities, organisations, or community initiatives.

At its core, a giving circle is about combining resources to create greater impact. Individually, members may only be able to donate modest amounts. However, when people pool their contributions, they can raise funds that support larger projects, provide grant funds, or help organisations address important social issues.

Giving circle members typically share common interests, values, or charitable priorities. Some circles focus on education, environmental sustainability, health, or social change, while others support local community initiatives. Many giving circles in Australia are also established around workplace philanthropy, corporate social responsibility programs, or groups of like-minded people who want to become more involved in giving.

Beyond financial contributions, giving circles often provide valuable learning opportunities. Participants engage in research, due diligence, site visits, and discussions about potential grant recipients. This allows members to develop a deeper understanding of community needs and the outcomes their contributions can achieve.

For many participants, the experience extends beyond writing a cheque. It becomes an opportunity to engage with philanthropy, build awareness, and contribute knowledge and expertise alongside financial support.

How Giving Circles Are Structured

There is no single model for how giving circles are structured. The flexibility of the concept is one reason for its growing popularity across Australia, including regions such as New South Wales and Western Australia.

Some giving circles operate informally among friends, families, or work colleagues who meet regularly to discuss charitable causes and determine where funds should be directed. Others are administered through a community foundation, donor advised fund, or other philanthropic structure that provides governance and administrative support.

Typically, members contribute a predetermined amount each year or make ongoing donations into a shared fund. The pooled funds are then allocated through an agreed decision making process. This may involve reviewing grant applications, conducting research, meeting with charities, or undertaking site visits to better understand community needs.

Many circles establish a mission and focus area from the outset. This helps guide discussions and ensures members remain aligned around shared values and philanthropic objectives. Some groups concentrate on local initiatives, while others support national or international beneficiaries.

Workplace-based circles may also involve employees who wish to contribute alongside their employer’s corporate social responsibility initiatives. In some cases, participants may provide pro bono services, mentorship, or professional expertise in addition to financial support.

Regardless of their structure, successful giving circles encourage participation, collaboration, and thoughtful decision-making. By involving members throughout the process, they create a stronger connection between donors and the organisations they support.

Some giving circles are administered through a community foundation, donor advised fund, or other philanthropic structure. For families ready to take giving further, a Private Ancillary Fund provides a more structured and tax-effective vehicle for long-term philanthropy.

How Contributions Work

One of the most appealing aspects of giving circles is their simplicity. Members contribute a financial gift to a shared pool, which is then collectively distributed to selected charities or grant recipients.

The amount contributed can vary significantly depending on the group. Some circles require modest annual donations, making participation accessible to a broad range of donors. Others involve larger contributions that allow the group to provide substantial grants and support game-changing initiatives.

Once funds have been collected, members typically review opportunities, discuss potential beneficiaries, and assess the likely impact of each proposal. Due diligence often forms an important part of the process, helping participants understand how organisations operate and how donated money will be used.

Many giving circles hold regular meetings, educational events, and presentations from charities seeking support. These interactions help members gain insight into pressing community issues and evaluate the effectiveness of various programs.

The collective nature of the model means every participant has a voice. Rather than a single donor making decisions, members work together to determine where funds will have the greatest impact. This collaborative approach often leads to stronger engagement and a deeper appreciation of philanthropy.

How The Giving Advisory Can Help

Giving circles are transforming the way Australians approach charitable giving. By enabling people to pool resources, share knowledge, and participate in collective decision-making, they provide a powerful and accessible pathway into philanthropy.

As more donors seek meaningful ways to support their communities, giving circles continue to grow across Australia. Their ability to combine financial contributions with education, engagement, and collaboration makes them an increasingly attractive option for individuals, families, employees, and community groups.

Brad Seeto