How do we forgive?

How do you understand verse 23 of John 20? How is it that we forgive?

21 Again Jesus said, “Peace be with you! As the Father has sent me, I am sending you.” 22 And with that he breathed on them and said, “Receive the Holy Spirit. 23 If you forgive anyone his sins, they are forgiven; if you do not forgive them, they are not forgiven.”
I’d like to hear from as many as possible on this one: all across the spectrum. How is this text working itself out in your faith community?