We have established guidelines for which Charities qualify as Eligible Charities, able to receive Charity Support Payments from us. Generally, we will approve as an Eligible Charity any organization that is tax-exempt under Section 501(c) of the U.S. Internal Revenue Code and whose principal purpose is to address issues of health, education, employment, poverty, safety, shelter, arts, science, animal welfare and/or general welfare on a non-discriminatory basis, and no part of the net earnings of which inures to the benefit of any private shareholder or individual. We will generally not approve as an Eligible Charity any organization significantly engaged in, or in attempting to influence, political, legislative, or religious activities (though we may approve organizations with a religious affiliation that provide services described above to members of the community at large without regard to their religious affiliation).
Will the payment of an Introduction Fee on a transaction reduce the Charity Support Payment paid from that transaction?
We currently pay as an Introduction Fee five percent (5%) of the Referral Fee that we receive on a transaction. We pay this Introduction Fee from the portion of the Referral Fee that we retain after paying out the Charity Support Payment.
Barring unusual circumstances, we anticipate distributing the Charity Support Payment on a transaction promptly after we receive our Referral Fee on that transaction.
Charities receive unrestricted funding and internet exposure from IIC – at no cost. When you use IIC to engage your Representing Broker, you have the right to choose a charity (your Favorite Charity) to receive a Charity Support Payment equal to 70+% of the referral fee that broker’s sponsoring broker will pay to IIC when your transaction closes.
Yes, IIC is licensed in Illinois as a real estate broker. This allows sponsoring brokers in any state to pay us a Referral Fee in full compliance with their state’s licensing regulations. But IIC has not in the past, and has no plans in the future, to act as the licensed real estate fiduciary (representing broker) of you or any other party in any real estate transaction.
IIC provides a program (the “IIC Program”) for individuals and companies that are socially-minded to leverage the power of their real estate transactions to support a charity of their choice (an Eligible Charity) at no expense to themselves. In this way IIC provides Eligible Charities with a new fundraising resource – all at no cost to charities and their supporters!
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!