Introduction
The power of collective action is entrenched in the very fabric of society. It is the foundation of most commercial endeavours, companies, firms and even social campaigns. The 14-year-old girl who dreams of changing the world while reading Sefi Atta’s “Everything Good Will Come” but gets a startling reality check that the world is much more complex than a book mirrors the reality that has dawned on many ordinary people who want to make extraordinary things happen. To build a car, we must assemble different parts together but no car has ever been built with purely resources emanating from one single locality.
When the Black Lives Matter Movement started gaining momentum in the United States in 2020, it was because of a shared disgust and displeasure with police brutality and other forms of violence but this movement peaked when George Floyd was killed in an extrajudicial manner. This event stirred many, home and abroad, to lend their voices to a common cause and a shared pain. And the result of this is the multiplication of impact and high-level awareness that was created about systemic injustices against the black race in the United States of America.
In Nigeria, the same story exists with the #ENDSARS protests and campaign, which culminated in the tragedy of October 20, 2020. Activism against police brutality had always existed in Nigeria but this campaign was different as the framing was one of urgency and a ‘we’ versus ‘them’ mindset. It was one rooted in both ideological differences and strong physical displeasure. There was a consensus among Nigerian youths that we could not continue living in fear in our own country and together, we all raised our voices and resources to send a strong message that young people deserved to be treated with dignity. The dividends that flowed from this episode are an apt description of what society can achieve with unity of purpose and collective action. Strong, profound, and lasting impacts with measurable contributions from different people.
Before we explore the traditional vehicles, let us consider how villages or certain families pooled resources together to sponsor one or two persons abroad for higher education with the hope that there will be some form of reciprocity, often on a greater plane, in the near future. What is evident here is that the principle of collective giving already existed in our society, albeit in different forms. When we raise money to aid the surgery of a member in church or to help a family with their accommodation challenges, we are creating informal and ad-hoc giving circles.
But what exactly are giving circles in the modern sense?
Giving circles are a form of collective philanthropy where individuals pool their resources—usually money, but sometimes time, skills, or networks—to support charitable causes or organizations. Members of a giving circle collaborate to decide how their collective contributions should be distributed, often focusing on specific issues, communities, or organisations. Simply put, giving circles are a community of people passionate about certain causes and advancing their resources to ensure the realisation of a shared goal or outcome.
Origin and Practices of Giving Circles in Nigeria
The communal nature of pre-colonial Africa and Nigeria provides a deeply cultural and historic trend of people pooling their resources together to achieve shared goals. From the market traders cooperatives, fundraisers at religious organizations, to family and friends groups. The workings of a giving circle are not oblivious to the Nigerian sphere. It was a common feature of our society for contributions to be made towards erecting a local school, a metal gate, and sometimes, even contributing to legacy projects like an airport, as demonstrated by the people of Imo State.
So, let’s look at these traditional models, which are almost similar to the concept of giving circles.
Market traders cooperatives/Esusu Groups
The voluntary contributory savings model is indigenous to many Nigerian societies. For the Yorubas, it is referred to as Ajo/Esusu, Isusu for the Igbos, and Adashe for Northerners. The cooperative system was built around specific groups of farmers, traders, artisans and other groups sharing similar interests. All of these traditional models are closely related but there are typically different operational models and end goals for each scheme.
Under the Ajo system, members contribute a fixed amount of money at regular intervals (weekly or monthly), and then the total amount collected is then given to one member in each cycle, and this rotation continues until every member has received their share. While the funds are often used for personal consumption, they can also be directed toward specific projects or events. Ajo is highly effective as an informal credit institution and is particularly valuable during landmark events such as weddings, naming ceremonies, and burials. In such cases, the group may advance funds to the concerned individual to help with planning and expenses.
Isusu roughly translates to “small small” in Igbo. Isusu is a contributory savings model that was created to provide loans or capital to start small businesses. Unlike Ajo, which is often consumption-driven, Isusu is primarily focused on providing capital for small businesses or investments. Members contribute regularly, and the pooled funds are given to one member per cycle, who can then use the money as business capital. This system is not typically used for personal consumption but rather to improve members’ economic prospects.
On the other hand, Adashe remains a popular model in northern Nigeria, especially among the women. Here, people contribute a certain amount of money, which is then pooled and shared among the group’s members. A defining feature of the Adashe system is that each member rarely contributed the same amount yet there was barely any form of proportionality in the sharing. Attempts were usually made to ensure people got a fair share of their contributions but there was a sense of shared belonging and social safety net, which this system provided to the most vulnerable households in northern Nigeria that sharing formulas was barely a bone of contention. On the surface, Adashe is similar to Ajo and Isusu but it differs greatly because it was more geared towards crisis management and responding to emergencies.
In my view, the Adashe system is the closest to modern giving circles, as it recognises the disparities in living conditions and economic power but believes in the ability of collective giving to tackle problems. Also, what made these groups attractive was the form of social security it provided to its members by granting low-interest or interest-free loans while building a sense of community and mutual aid.
Religious Groups
Perhaps the most profound of these collective giving circles are the religious institutions. The church and the mosque gradually grew into a place where many ran to for financial succour and in no time, fundraisers for a sick person’s surgery, a family at risk of being ejected from their house, or funds to support the education of a disadvantaged child became a common phenomenon. Collective giving in the church rests on the principle of shared humanity and love. Many see it as an act of piety and Zakat, as the Muslims would put it.
Faith-based organisations have typically been a great supplement to the role of the state in numerous instances. For example, the Christian Health Association of Nigeria has dedicated resources to local health delivery, especially where public health facilities are lacking.
Family and Friends
In a typical extended family system, family and friends often come together to support members during occasions such as weddings, burials, childbirth, etc. These contributions could be in the form of money, labour, gifts, etc. The most popular is the pooling of resources to pay for school fees, books, and other learning materials. Even the average start-up founders in Nigeria still rely on some form of monetary contributions from friends and family members. This system thrived because of the Ubuntu mindset of communal living.
The Rise of Social Media Giving Circles
Crowdfunding remains the most popular way of collective giving among netizens, especially for emergencies and time-sensitive issues. With declining economic conditions in Nigeria, numerous calls for help flood social media daily. From medical emergencies, families struggling to feed, to individuals trying to raise funds for 50% graduate scholarship programmes, X formerly known as Twitter has proven to be an effective way of galvanising collective action. Currently, pages like Giving Circles MENA, which focuses on driving positive change in the Middle East and North Africa; Sustainobles, which leverages recycling of plastics to run a local school in Lagos; and Nonprofit Tech for Good, which supports young people on their learning journey with materials and laptops, exist and they leverage the power of collective giving and giving circles to advance philanthropy in the digital age.
Why Should You Establish a Giving Circle?
There are numerous reasons why you should choose a giving circle, especially over starting a charity. The first reason is the simplicity of setup that giving circles offer, as opposed to the legal paperwork and structures required for charities. With giving circles, as the world evolves and the priorities of members shift, it’s easier to redirect resources and focus on other mutual interests. Giving circles are highly flexible and adaptable to the needs of each member, allowing you to control what you contribute, how much time you want to volunteer, and the programs you wish to support.
Additionally, giving circles serve as a networking community where you can learn more about various causes and deepen your understanding of philanthropy. However, the most significant advantage of giving circles is the scalability of their impact. They enable you to make an immediate difference, particularly by directing funds to local organizations already doing impactful work in areas you are passionate about.
When people think about giving back to the community, they often think of foundations and charities. However, giving circles make philanthropy accessible to everyone while providing a sense of fulfillment that comes from contributing to something life-changing.
What is the best way for institutionalising your giving circles?
A mere incorporation or registration with the Corporate Affairs Commission should set the ball rolling. There’s no need to register the giving circle as a cooperative, as this will warrant unnecessary paperwork and scrutiny. Registration of your giving circle gives it some form of legitimacy and gives potential members some form of security that the initiative is not a fraudulent enterprise.
Beyond registration, there is a need to harness digital tools for giving circles. Digital platforms like Opay, Piggyvest and Cowrywise can be utilised for group savings, but there are other more structured tools like Alice, which leverage the power of smart contracts and data analytics to ensure funds reflect the set goals. Another example is to follow the structure put in place by Givinga, which relies on its awesome Philantech software to help drive social impact with philanthropy. Also, for sustainability, it is recommended that new giving circles join platforms like GlobalGiving.org while using blockchain-based platforms like Binance Charity for transparency.
Looking forward
A report from the African Philanthropy Forum titled “Scanning The Philanthropy Ecosystem in Nigeria” reveals that corporate philanthropy and private foundations giving are the most popular in Nigeria. It highlights the scepticism that comes with collective giving, revealing that most philanthropists are sceptical about the modus operandi of such circles and the likelihood of being used as an instrument of fraud. It is my view that for giving circles to become a credible alternative to charities, even for corporate organisations, the current groups that engage in this practice must demonstrate high-level transparency. Lastly, I enjoin you to embrace giving circles as an opportunity to create the world you want to see. Do not worry about the numbers; people will see your work and yearn to join your circle but moderators of giving circles must be cautious not to admit anyone without background checks.