A club has been set up which takes a novel approach to the business of giving something back to society. By Peter Carty

Frederick Mulder is a softly spoken art dealer in his late fifties. Originally from the Canadian prairies, he came to London and set himself up in business after finishing a doctorate in philosophy. Common lore dictates that art dealers are at least as interested in money as art. Many dispute this, but Mulder is not one of them. Certainly, he is enthusiastic about the Blake and Picasso prints that are part of his stock. Nonetheless, he does not deny that money is a major motivator, although in his case as a lever for changing the lives of others rather than his own. "I became interested in social issues over a long period," he says. "My work has allowed me to generate resources, so I could something about them."

A further insight into Mulder's character comes form the subject of his PhD: the concept of miracles. Now Mulder and the three other founders of The Funding Network - the latest giving circle to appear in the UK - are not miracle workers, but it is fair to say they are doing their best. Giving circles, or philanthropic clubs, are not a new phenomenon in the UK. They started to drift across the Atlantic from North America during the 1980s, part of a giving-is-gratifying amelioration of the greed-is-good zeitgeist. The basic idea is that a group of affluent people get together to discuss various worthwhile causes before making donations in concert. In theory, the gatherings enable participants to make giving decisions which are more informed and structured than they might otherwise be.

Be that as it may, giving in our culture is usually a solitary act, following the Christian convention of mutual ignorance between the right and left hands. When I put this to Mulder, it is clear that he does not subscribe to such uncoordinated ethics. "That's a wonderful tradition," he says, "but in an age where so much is public, there's also a place for saying , 'We want to be a bit more open about giving; we want to be seen to be doing something with other people'. We're social beings. There is a natural dynamic for people to meet together."

The Funding Network fits the giving circle template, but certain aspects of it are unusual. First, there is no minimum wealth stipulation for membership: the only conditions are a £50 annual fee and a total annual donation of at least £1,000. "We don't want to be a club solely for the phenomenally rich," says Mulder, before adding, "although we're very happy to have wealthy members."

Happiness underlies a further facet of the Network. Another founder is Polly Maclean, 28, from London, who, as well as working with various charities, is a practitioner in neurolinguistic programming (NLP). NLP has been fashionable in management training for some time; it aims to discover the ways in which the brain works in order to boost individual wellbeing. Maclean says the configuration of The Funding Network's giving processes does not relate directly to NLP. However, chosen causes are generally small projects, so visible improvements can be observed. "We want to maximise the impact of each pound donated," she says, "so members feel better about their contributions."

The first meeting took place in March, in the Royal Association of British Architects' premises in London's West End. Five charities gave short presentations in the morning , before pitches by another five in the afternoon - this time bodies with which members were directly connected. "With ten different organisations, the chances are that there will be something most members want to donate to," Mulder points out.

Generous slots were allocated for coffee, lunch and tea. Yet the day was not as laid back as it sounds. After the presentations there was a pledging session in which members called out how much they were donating (minimum £100) with the amounts going to each project totalled on flip charts.

This might sound rather direct but Maclean emphasises that no one is under any pressure to pledge. Certainly, Martin Stamp, one of the attendees, did not find the exercise stressful; quite the contrary. "Simply by one's presence, one is saying one is charitably inclined," he says. The mercenariness was a welcome novelty. "It's very un-English to talk about money," he says. "I found it liberating." He gave £500 in total to half the causes. Stamp, a 50 year old "techie", as he puts it, made the core of his capital as part of the launch team behind Psion. He found the presentations engrossing. "I'm middle class, as are most of my friends," he says. "Yet here I found I was looking at a different side of life, and not in the dramatic or histrionic way. It was all very interesting."

Probably the most distinguishing characteristic of The Funding Network is its causes. As Mulder explains, it is driven by the desire for social change, so its beneficiary list bears little resemblance to those of the charity dinner or ball circuit. It is, says Maclean, "edgy".

Favoured causes include Cardboard Citizens, a theatre company made up of homeless people which mounts interactive plays dealing with social issues: at key points the dramas stop, and audiences are asked how a particular problem could have been better tackled. "That's my favourite cause," Maclean explains.

Another beneficiary is Hibiscus, which assists women in prison who have been imprisoned for drug smuggling. The 'mules' are mainly destitute Jamaicans or South Americans. "The charity provides practical help such as phone cards and warm jumpers for women who aren't used to the British climate," says Maclean.

The sources of members' wealth does not provide clues to their desire for grassroots activism. So far Mulder thinks that, predominantly, members have earned their capital rather than inherited it, but readily admits that this is a hunch: "I wouldn't know."

What is clear, however, is that the first meeting was a huge success, even though Mulder points out that it was set up as a taster, with no obligation to give. There were 40 attendees, mostly in their mid-thirties and upwards. Thirty-five made donations, the smallest £150, the largest £10,000. "We raised £60,000," Maclean says. "Much more than we expected."

Today The Funding Network is gathering in London for its second fund-raising event, with a third to be held on November 16. "We're already planning an offshoot in the north of England," says Mulder.

Potential members (but not charities) can contact The Funding Network on 020-7586-1442, www.thefundingnetwork.org.uk