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realtors giving back — Giving back (from helpmakemiracles.org)

It was about one month ago when I received the call from a local public relations firm. The voice on the other end of the line wanted me to write a column about their real estate agent client. They wanted to draw attention to Realtors giving back, specifically to the fact that their client started a program where they will be donating a portion of their commission to a charity chosen by the home buyer or seller.

Although I was pressured to commit to write the piece as well as provide a publication date, it seemed (at least for the moment) that seeking publicity about one’s altruism was ironic. In the ensuing weeks, I received follow up calls to write the piece. But rather than saying “No,” I told them it would most likely be a piece that is generally about real estate agents’ charitability. After all, we’re headed into the holiday season, and the timing seems right about bringing attention to Realtors giving back.

Not to give the short shrift to the PR firm and their client, whose “Pay it Forward” initiative was announced in an October 19^th press release that their team of agents, processors and coordinators will donate a portion of each commission to a charity of their client’s choice. Although an amount or percentage to be donated was not specified in the press release that I received, they are committing a portion of every commission to charity throughout the year. The team’s plan of giving a portion of commission to charity is not their exclusive idea, nor is it a novel one; nonetheless, that real estate team deserves kudos for the move – welcome to the fold!

It should come as no surprise that real estate and charitable giving goes hand-in-hand. Nationwide, real estate companies, franchises, and agents have sought to give back to their respective communities. In 2007, Gerald Leonard, then owner of Coastal Elite Real Estate in San Clemente CA, announced he was pledging 50 percent of all commissions to charity. And in 2009 Laurie Loew of Give Realty (located in Austin TX) announced giving 25 percent of her commissions to charity.

RE/MAX has supported the Children’s Miracle Network Hospitals through year-round contributions from participating agents. Since 1992, RE/MAX agents have given an estimated $143 million, as reported by a recent post to the Children’s Hospital Foundation website (childrensnational.org/giving). Besides individual agent contributions, RE/MAX “also hosts a variety of fundraising events throughout the year.” Additionally, RE/MAX agents can designate specific homes as “Miracle Homes” – “those homes that have yard signs also indicating the agent’s commitment to improving local pediatric care.”

In addition to agent donations and national fundraising for the Children’s Miracle Network, local RE/MAX offices host fundraising events too. For example, RE/MAX Centre in Olney MD holds an annual Charity Gala, the tenth one recently raised more than $40,000. Last year, RE/MAX Gateway in Chantilly VA raised more than $30,000. And RE/MAX Town Center of Germantown MD holds an annual golf tournament.

Real estate agents don’t only donate money, they get involved; and are recognized by Realtor® Magazine’s Good Neighbor Awards. The Good Neighbor Awards was launched in 2000 and “has since recognized more than 160 Realtors® for their service to their communities…Good Neighbor charities have received more than $1,000,000 in donations. In addition, each winner receives national and local publicity, which generates additional donations…Realtors® are also recognized for their community service through state and local real estate associations.”

Original published at https://dankrell.com/blog/2016/11/11/realtors-giving-back/

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

You may be aware that charities accept cash and even automobile donations, but did you know many charities will accept your real estate donation too? As market conditions continue to confound home sellers, many are looking for alternate ways of disposing of their homes. Donating your real estate can be a way for you to free yourself of a property you no longer have use for, help a charity, and possibly receive tax benefits in return.

Donating real property is not a new phenomenon. People have been donating real estate to reduce their taxes liabilities for many years. Depending on how your donation is structured, you could receive tax benefits now or possibly in the future (to reduce estate taxes). In a sluggish and unresponsive market, donating homes may become a more popular solution for frustrated home owners and cash strapped charities.

Although most real estate donations come in the form of non-owner occupant homes (such as vacation home, second home, or investment property), some charities will accept farms, vacant lots, “double wides” and even commercial property. Although you may have to own the home outright for an immediate donation, some charities have mechanisms to accept real estate donations through wills and living trusts.

Of course, the tax and financial implications of such a donation would require you to consult with your accountant, CPA, and/or attorney to determine if this is a viable option. The IRS has specific guidelines on real property donations; the tax law describes what types of donations qualify for tax deductions as well as describing what charitable entities are eligible to provide tax deductions for your property donation. Maryland and local tax laws will also impact your donation decision; Maryland has specific laws guiding charities and contributions, while local and State transfer taxes can have an influence on your donation.

Once you determine this is a practical option for you, consider consulting with the Maryland Office of the Attorney General (www.oag.state.md.us/nonprofits/index.htm) and the Maryland Office of the Secretary Of State Charitable Organization Division (www.sos.state.md.us/Charity/Givewise.htm) for information on charities and charitable giving. The respective offices (and websites) provide information about requirements for charities as well as consumer information including donor’s rights and “how to spot deceptive practices.”

Although not all charities accept real estate donations, many do. Giving charity is a personal endeavor, as you would likely support organizations which represent your ideals and morals. You can verify and receive information about specific charities and non-profit organizations from the Maryland State Charitable Organization Division (listed above).

What does the charity do with your property after they receive your gift? It depends on the type of property; however, some charities seek to convert homes into group homes for the disabled or the less fortunate and homeless, while other charities anticipate liquidating real estate gifts to obtain cash to support their organizations.

In this season of giving, real estate donations can be a way to give back to the community as well as the organizations that have impacted your life. However, before you decide to give, please consult with your accountant and attorney to determine if this is appropriate for you and to verify that your charity meets the requirements to accept such gifts as well as providing tax deductions.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 24, 2008. Copyright © 2008 Dan Krell.

Category: charity

Realtors giving back

Charity begins with a home; donating real estate