Step 5: Figure out resources
What are the expectations of the group in terms of donating time, expertise, and money? Will you create one bank account or write checks individually for grants? If the latter, make sure members make each check payable to a nonprofit grantee rather than another member so that everyone gets a charitable tax deduction. Should you want to formalize the circle as a nonprofit corporation, get advice from a local community foundation or an accountant. Such tax-exempt status has advantages but requires annual filings and other legal procedures.