This is a question for your accountant. We have been advised as follows: There is actually a three part test: (1) the activity constitute a “trade or business”; (2) the activity be “regularly carried on”; and (3) that the activity not be ”substantially related” to an exempt function of the organization. So even if you do need to pay UBIT, your organization would likely still net over $1,000 on the sale of a $300,000 home.
We’ve set up a tracking system that enables Charity ABC to get 5% of the referral fee when a supporter of ABC chooses XYZ to get 70% of the referral fee. For a $300,000 home sale, Charity ABC would get $93.
Charities with loyal supporters are in a great position. Charities with large numbers of supporters can also do well, even if some of their supporters choose a different charity.
If your organization has a “give or get” policy for board members, you could offer to count IIC transactions that either they (or people they’ve referred!) use IIC to find a broker and pick your organization. Our broker referral request form asks how you heard about IIC and there’s a place for name and email address so we can credit people with resulting transactions. Pretty nifty!
It only takes a 3-5 minutes to complete an application. It can take up to 5 days to approve the application, but typically it’s 1 or 2. Then, it’s just a matter of getting the word out to your board, employees, and supporters – and periodically reminding them. Once you get your first success story, you’ll have an even more compelling story to tell!
IIC subtracts $50 from the first check you receive each each year, to help offset our administrative costs. If you don’t get a check, there is no fee. And after your first check each year, there are no fees.
Perhaps, your organization has all the funding it needs to meet its mission? Honestly, the only reason we can think of is that you’re too busy writing grant applications or planning annual campaigns. Signing up is easier than any grant application and having just one supporter a year use IIC to buy or sell a $300,000 home would net your organization $1,320. And, you won’t have to write a grant report!