I refused to enter into the world of these circles, as I had been instrumental in bringing in a friend who eventually lost his $400 investment in another pyramid scam years before. I had pledged to myself that I’d never again be suckered into joining another one that even felt the tiniest bit like the one where my friend had lost his money.
Many years had passed and so many of my friends who I respected and trusted spoke so highly of these “circles” (not pyramids) that the greed bug finally got the better of me and I joined. I was backed by a community member who I also respected and trusted. I went on the calls, participated, while I witnessed that the circle was treading water for a long time.
Then another of my long-term trusted friends who was in the “dessert” spot told me that HER circle was soon closing and I would soon get my reward. I explained to her that I was moving to Bali, and she dismissed my concern, saying that she would make sure that the call times would always be convenient to me no matter which direction the circle would go in. Again, it seemed to go nowhere for a while.
Then, that friend contacted me, letting me know that the new members of the circle could not make the call at the time I was promised it would stay at, and perhaps I might want to leave the circle, giving my spot to one of them. Fresh blood trumped old friendship. I gladly gave up my spot.
I had been coached by older players in this game that the money “gift” was not really promised and that everyone was playing for the “sisterhood” and the support of the other women on their financial journeys. My question is this: If it is not for the money that they expect at the end of the game, why not take the money factor out of it completely and just have calls for the “sisterhood.” How many of those who claimed that was the true reason for their participation would stay in and be on all of those calls? Those calls are often at inconvenient times and for me really messed with my work schedule.
Gaelyn Larrick
Gifting Circle Stories 
These things look less to me like pyramid schemes (a la Mary Kay, etc. which also hypes up “sisterhood”) than like traditional tontines.
Like in https://resourcegeneration.org/2012/04/18/getting-to-know-giving-circles-in-rg/:
“Communal giving is a practice that has been instrumental to communities all over the world. In Cameroon, groups of women, called tontines, pool their resources and take turns taking home the pot of money. In Korea, the same practice is called geh. Giving circles work best as collaborative efforts, where voices from both the giving and receiving side are heard.”
The main advantage seems to be this: say 10 women want to each save up $10/month over 10 months to have $100 at the end.
If they plan to do this by each contributing $10/month for 10 months and receiving $100 one of those months, this works for someone IF her other 9 peers pay on time.
If they plan to do this by each saving up her own $10/month, this works for someone IF she has a safe place to save the money where her parents, in-laws, husband, etc. can’t take the money away. In some times and places in the world, that has been a BIG if, bigger than the other-9-peers-paying-on-time one.
So, before joining a giving circle, I’d recommend looking up the history of tontines and asking oneself “do I have a secure bank account, or do I need this method of compensation for not being able to get a secure bank account?”
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