If you’re reading this, your curiosity was probably piqued by my commitment to giving back to the community. How does it work, how much do I give, and can you influence where the money is donated? I’m hoping you’ll find the answers to your questions here.
HOW MUCH DO YOU DONATE? I’ve made a commitment to myself to donate 10% of my net commissions. Let me explain what that means. Generally in any listing contract, it is spelled out exactly how much commission will go to the brokers facilitating the sale. This is usually expressed as a percentage of the sales price. It is generally agreed upon that the sellers agent and the buyers agent will split this commission in a co-op agreement. Additionally, most brokers (myself included) are supervised my an employing broker. This person is in charge of double-checking all the contracts, ensuring the broker is adequately trained, answering questions for the broker, and providing an office space. The employing broker will also take a cut in the commission. This amount can vary depending on the volume of business an individual broker is doing, and who their employing broker is.
So, let’s do an exercise. Let’s say theoretically I sell a home for $250,000, and a $12,000 commission is agreed upon. In this case, $6,000 would go to the listing agent’s employing broker, and $6,000 would go to the buyers agent’s employing broker. Next, the employing broker takes their cut. For the sake of this example, let’s say it’s a 70/30 commission split. That means I will receive 70% of $6,000 and a check for $4,200. From this amount, my personal net commission, I will donate 10%. In this case, that’s a donation in the amount of $420.
TO WHOM DO YOU DONATE? Well, that all depends. Generally it’s to places that are dear to my heart like the PTA at various public schools, non-profits around town that support fine arts, theater arts organizations, and local non-profits that support social justice. But really, it’s whatever catches my fancy at the time! If there is something specific I’m hoping to help fund like a field trip or a theatrical production I might give to those organizations. If a friend introduces me to a new organization that I think is doing great things, I might give to them. It’s really about where my heart is pulling me!
WILL YOU DONATE TO A FOUNDATION OF MY CHOICE IF I AM YOUR CLIENT? Maybe. If you tell me about an organization that you love to support and it sparks my interest, odds are I will donate to that organization. However, I’m reluctant to make promises because there are some non-profit groups that go directly against principles that I hold dear. I don’t like mixing business with politics or religion, and I also would feel icky if I donated to an organization directly supporting something I don’t believe in.
To be clear, the donation is not a closing gift to my clients. It is a gift to the community. My goal is to make Colorado Springs a better place for myself, my kids, and for everyone living here! It’s a tithing to the community, of sorts.
I hoping this has helped you in answering any of your questions. If not, please feel free to send me a FB message or give me a call or text, and I’ll be happy to answer any and all questions you may have!