'Giving Circle' Proves Power In Numbers

In First Part Of 'Giving Back' Series, An Austin Group Pays It Forward

(CBS)  Teresa Dean never thought she'd have a job. Not because she didn't want one. She just couldn't imagine her life being that good, CBS News correspondent Kelly Cobiella reports.

"I don't think I pictured anything positive or happy. I just pictured myself, like, this is who I am, this is what I have, and this is who I'm going to be the rest of my life," Teresa explains.

Teresa was pregnant at 16 and just six months ago, homeless in Austin, Texas with a son to feed. But instead of handouts, she got a hand up — well about 100 hands really — from women like Rebecca Powers living in the same city, but a different world.

"We did a lot in our schools and our church, but we didn't ever think about how we might participate in our town," Rebecca says.

So, over coffee, Rebecca and her friends decided to try a new take on the old sewing circle: a "giving circle." Each woman asks their friends — and friends' friends — to donate $1,000, until the pot hits $100,000. Then they get a vote on where the money goes.

That kind of grassroots giving is growing. More than 400 giving circles have sprouted across the country, with women raising anywhere from few hundred dollars to hundreds of thousands.

Cincinnati mom Wendy Steele saw the potential five years ago and began recruiting busy moms and working women who couldn't afford to volunteer.

"I tried to find a way for them to get involved without giving their most precious commodity, their time," Steele says.

The Austin group's first grant helped fund a work training program for at-risk youth. Their circle has grown to more than 300 women and recruiting is as easy as a trip to the ice cream shop.

"We can see the face of the people we're helping. We can go into Ben and Jerry's and the kids behind the counter are there because our money is paying their salaries. That's powerful," Powers says.

Today, Teresa has an apartment, a paycheck and pride.

"The first thing I did was take my son out and buy him shoes and clothes. It was lovely," Teresa says.

And that hand up has created something else, she says.

"Every time I'm on the street and someone asks me for change, I'm going to give them what I have. Even if it's the last dollar in my pocket, I’m going to give it to them because I've been there before and I know how it feels," Teresa says.

The giving circle keeps giving.

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For more information about Impact Austin, please click here. You can also learn more about LifeWorks, which transitions youth and families from crisis to safety and success.

For tips on volunteering, please click here.

For information on how you can donate, click on The Association of Fundraising Professionals, committed to advancing philanthropy through education training and advocacy. The Foundation Center also has resources on philanthropy.

[vdavis1220]

I live in Michigan & I would like to know if any help for someone like myself I'm a 56 year old woman unemployed & I'm almost homeless. I need help.

[greenway11]

As a member of Impact Austin, I can tell you that the recipients of these grants aren't the only beneficiaries. The women within this organization benefit from the joy of giving back to the community as well as the powerful experience of learning about about philanthropy. It was incredible to experience the power that 300 women had in giving back $300,000 to the Austin community last year. I hope that giving circles like Impact Austin will spread to other communities all over the United States.

[limbocker1]

In our work with donors we are seeing a great deal of interest in giving to local nonprofits. An excellent resource to help donors develop strategic giving programs to support local nonprofits is the Community Giving Resource at www.communitygivingresource.org.

[austinwoman]

For information about Impact Austin and the power of women investing in their community, go to www.impact-austin.org. To learn more about the LifeWorks Ben & Jerry's project, go to www.lifeworksweb.org

[squiz2]

If everyone was this selfless, can you imagine what a great country this would be? I think people have become so selfish and greedy that they've stopped caring about those that need help. We should all help people up instead of just stepping over them.

[dteutonico]

Thank you for running this story on giving circles. As your example showed, giving circles are making a very large positive impact in communities across the country. If you are interested in finding out how to start a giving circle, you can find more information on the Giving Circles Knowledge Center at www.givingforum.org/givingcircles. Thanks!

[lady_di_d]

I too have been the recipient of a "hand-up". I too was once a teen mom with nowhere to go. I now have a Ph.D. and a good job -- and I take seriously the idea of "paying it forward". There are so many ways to help those less fortunate and I get real joy out of helping. I also make the effort to teach my children to be grateful for what they have and to give what they can. Bravo Rebecca. Good luck Teresa.

There needs to be more people like Rebecca, Thankyou