The Benevolent Broker: Charitable Giving As A Business Edge

New ideas in commercial real estate are emerging to help us with age-old business challenges. Brokers have more tools than ever to aid in gaining information on markets and properties and to build networks.   But how many truly new ways to add value come along?  How can we serve our communities How creative can we really get in this industry?

To put it another way, what can be made part of the deal that is new, that captures the imagination, serves a mutual need and differentiates one broker from the next?  How can we make deals special?

Lately, we’ve seen a rise in a creative new business model that combines old-fashioned networking, commissions and charitable giving.   Different brokers around the country have struck upon a new way to add value by channeling portions of commissions into the hands of worthy causes that clients want to see funded.   Let’s take a quick look at two of these “benevolent broker” models:

Charity Realty International  The New Jersey-based effort of a Rochelle Park, NJ firm specializing in office, industrial, investment and real estate consulting,  is helmed by President James F. Costanzo.  “I have always had the dream of becoming a philanthropist,” says Costanzo, whose firm has pledged to donate 20% of its net revenue to various charities including Alzheimer’s Disease Research.

Rather than donating a percentage of profit or relying on himself to always donate when the paycheck reaches his pocket, Costanzo felt the most up front and consistent way to contribute was to include the donation as part of the contract.

“I pledge this up front, contractually in writing … it takes all of the human frailty of what you might do with the money once you get it out of the equation,” Costanzo said.

Also inserting charitable giving into the commercial real estate process is Chicago-based  Investing In Communities.  IIC allows clients to fund their favorite nonprofits for free by including the giving in the structure of the clients’ real estate transactions.   Replacing referral fees with a philanthropic approach, real estate professionals become members of IIC for a small fee, and pledge to contribute a percentage of commissions to the nonprofit selected by the client.

As the season is upon us, I have to wonder; what other charitable commission or referral fee ideas are out there?

 

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4 Comments

  • Angels with Faith Ministries & Church, a 501c3 non-profit charity in Georgia accepts & needs donated property, land, homes, mobile homes on lots, forclosure homes, etc, all donations are tax deductible for FULL market value for up to 5 years! If you have a home, property etc that you have inherited, one you owe tons of taxes on, that is in foreclosure, one that needs work, even if it needs total remodeling, land that you never use & are tired of paying taxes on, rental homes that you are tired of dealing with & paying taxes on, get out from under that money pit & get a tax deduction , our fiscal year runs from Febraury to February so all donations until the end of February still receive a 2012 donation receipt & you get a voucher for an up to 7 day cruise for 2 on Carnival or Royal caribbean that includes food and a 3 day 2 night mini vacation for a family of 4 that includes 2 adult theme park passes with every donation. 100% of all donations to our charity go directly to helping families in crisis, need or after disasters & also military families & 1000s of children at Christmas time. Our Charity/Church I also in dire need of donated land in the North Georgia area ( anywhere within an hour of Winder, GA 30680 where we are located now) we have outgrown our small home based rental home from which we run our charity & Church for the past 4 years, we need enough land to have a place to run teh charity & Church, to place donated mobile homes etc to house homeless families temporarily & hopefully a pond for fishing to build our Youth Camp on for underpriviliged & at risk youth & teens, it can have dwellings & buildings already in place(no matter what condition) or be empty land but we cannot grow & help 1000s more families & children withjout a bigger place. Thank you & God Bless, please visit our websites at http://angelswithfaithministries.beep.com & http://angelswithfaithministries.org EIN 27-1972461 for more information or contact Lori Tuck, director at 678-754-1541 or Rev Michael Tuck at 678-754-2337 or email at [email protected] We also accept & pickup donated Vehicles, cars, trucks, Rvs, campers, Boats, lawnmowers, ATVs, etc in any condition & of any kind & household needs, furniture, working appliances, baby&childrens needs, clothing, used carpet, cabinets, counter tops etc, computers of any kind, electronics etc GET THOSE DONATIONS IN TO US BY THE END OF OUR FISCAL YEAR ON FEB 28th & get your current year tax deductions.

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  • glen taylor

    May 6, 2013

    Very interesting, I opened a residential side to this almost three years ago when the rebate rule came into effect on the residential side. If I can help you or if you referred e any clients I would rebate money and send you a referral fee.

    Glen Taylor 973-632-4595

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  • Joseph Luczaj

    August 18, 2016

    My Name Is Joseph Luczaj the Founder of C.A.R.E. Network. We are a network for real estate professional their clients, prospect and others who believe in building community through contribution. Our members are nationwide and work for any broker will contribute a portion of their commission at closing to the charity of your choice.

    C.A.R.E. Stands for Community, Affiliated, Real Estate, Expert

    Please visit. http://www.CAREnetworkagents.com
    Joseph 321-217-5523

    Reply

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