I ask the forum if this is going to far.

The Pastor at the church I go to has a 15 year old son needing aid for missionary work for the summer. He is looking for sponsorship opportunties to help pay for it.

The boy in need is a good kid, good family. I support his cause all I can and dropped off a small check for support. I know the Pastor, my kids know his kids. His kids on occassion babysit my kids. He is also trying to raise funds for several other kids who have no way of traveling (financiallY). They have 6 months to raise the funds.

I'm thinking this:

I will donate 20% of any deal I CLOSE between now and then from the proceeds of what I get at closing on any deal sent directly from the sphere involved, (so to keep is simple, 200 for every 1000 I walk away with). What I would need is contact info from your people intereted in selling or buying a home. Pass my cards out, use me in you advertising (I will assist with your fundraing efforts as well).

My goal is to close some deals and expand my sphere. As far as the organization? I really don't care for, only the group that will benifit.

Question: Would it be wrong to offer such a thing to a person that I know personally. Basically it comes down to: I scratch your back, you scratch mine, we all benifit.

Note- Not looking for opinions on politicial view, religious views, tax consequences, etc..... Its a simple question.

I've done this. I didn't increase my sphere and I didn't announce it to anyone. I decided to donate the entire next commission check from my next listing to some sorta charity or need. The day after I decided that I got assigned a listing. The day after that some friends of mine announced they were going to become missionaries (they weren't asking for donations). The home sold to a cash buyer in a month.

Maybe you could offer them something like that instead of just the 20%?. And announce that to your sphere. Or the church.

I don't think you've gone to far.

I do something similar. I give away a coupon for "closing cash" coupons or a rebate to a buyer or seller, and pledge to donate a matching amount to the charity or group in question when they are redeemed. I haven't been doing it long, but I do have a seller with a subsequent buy simmering due to it.

I think it could be a win-win. How much easier is it for groups to simply refer people they already know instead of selling overpriced cookie dough or wrapping paper.

Just make sure that you can deduct it - in other words, make sure the check is written to a tax exempt or registered charitable organization.

ColoBroker- Intersting.

TB- I believe its a tax deductable org, but????? I can only say that the proceeds will get the group that needs it. If I can gain a beinfit from it also, great! If not, well its still doing good.

No, I don't think it's going to far as you have good intentions behind it. Also, don't advertise outside of the group benefiting (if at all), otherwise it would seem like preying on people's good intentions.

No, I don't think it's going too far. I kind of like it...it's for a specific cause (unlike just hitting on the church to help boost your business) and you are donating a very worthy chunk back of any money you make out of the transaction.

In most cases I disapprove of commercializing the church - but this seems different to me. It doesn't seem as self serving as just blatant "working the church" does..if that makes sense?

I don't know, I think it might work a little better to give a smaller portion of each check no matter where it comes from... figure out what you can afford, then rather than saying I'll give to you if you give to me, which may seem too self serving to some people.... You are just giving to them. I think it will achieve the same result because people will want to help you get business so you can help them, but it will be voluntary rather than required. Does that make sense?

that sounds like a referral fee, so I'd check with an attorney.

In my state, it's illegal to pay for referrals unless the one who is referring people to you is licensed.

^that's a good point. Better check that out!

Well..... Thats actually being looked at. My broker is running it by the Attorney, we should have an opinion today. It may come down to I would donate the money to the Companies Charity account which gives grants to Organizations. The Organization would have to register as a non-profit organization to be a recipient of the funds.

OYE, a good idea bogged down with the stupid laws! At least I know enough to run my ideas by the Broker instead of going at it alone.

IMHO, it is an honorarium, not a referral fee. Mine never goes to anyone but a charitable organization in honor of the referrer or referred party.

"IMHO, it is an honorarium, not a referral fee. Mine never goes to anyone but a charitable organization in honor of the referrer or referred party."


Mine would not either. With the OP, the money would never be given directly to the individual. Everything would funnel through a Non Profit Organization and designated to aid the individual. Kind of like the Red Cross, you can donate and specify what cause the cash goes to, or they can put it into the general fund.

Its still coming down though (legally speaking) is it legal? I think so, but I aint no lawyer. I think honestly though, it will be paying a referral fee. I'm not doing it for EVERY commission, only commissions that references the organization. That seems to be the standard at the moment.

Hmmm, not sure what the legal implications are for a "referral fee", but it kinda sounds like a fundraising opportunity for the people passing out cards, etc.

Good intentions pave the road to...where again?

Not trying to discourage you, just a little humor

I'm with you! But there are legal implications in that I do hold a license and ignorance of the law would not hold up in court.

I'll find a way to make this work though.

I'm interested in knowing what your attorney said. If he said you can't do it, you might check out this website:

http://www.fundraisingwithhomes.com/

This appears to a work around and seems to work similar to the way down payment assistance programs such as Ameridream used to work.

They are a licensed real estate company and get a referral fee at closing, keep $295 for an administrative fee and give the rest to the charity of your choice.

Perhaps this is a way around the problem.

Being that the offer is ONLY limited to a particular SOI and his cause, it is perceived as paying for referrals. If I say Every closing I get regardless of where the lead came from a donation would be made, then It would not violate the law. It's also recomended that it be on HUD statement as well, and payments be issued by the closing agent, not from me (The money never touches the brokerage account, or my account).

I'll figure a way to make it work for me and the charity. I just won't put my license at risk or donate 20% of EVERY check I get (thats crazy talk).

I have another idea, but it has Dateline NBC Investigation Report all over it. It includes me, private jets, lavish homes..... I should stop, I have said to much.

What if you make a deadline...10% of EVERY closing you have in the next (x amount of months). Naturally you would encourage them to help you along. Putting it on the HUD statement seems beyond ridiculous...but then again so is the fact that this is an issue.

A retail company can say "Well donate 10% of our proceeds to charity" with no problem..why should having a real estate license make it a problem.

Here's an example of a really dumb law killing a good idea.

And thats why when I become President I will change things. Actually I will appoint my people and travel the world for 4 years and really do nothing. But the people I appoint will have commen sense and know how to forge my sig incase I'm laid up on a beach and unable to sign the bill into law.

I do like and would be willing to cut the % and and make it happen for every deal with a deadline. I never actually considered that. HMMM.

I'm considering offering a similar deal to my daughter's school (a very small, Waldorf school). We're always fund-raising to help keep tuition and fees down so I'm going to run it by my broker and see what he says. I have some concerns about how to approach this since it could appear very self-serving (let's be honest). While it would be very good for us, promotionally, who would look a gift horse in the mouth?