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Weekly Q&As

May I set up and advertise a charity donation program?

Release Date: 11/22/2016

This email address is being protected from spambots. You need JavaScript enabled to view it., Martin & Gifford, PLLC

QUESTION: I would like to set up a program where I would donate a portion of my commission to a charitable organization in my community that I’ve supported for many years. The organization would have a link on its website that would explain my program and I would be permitted to appear at the organization’s events to give a brief presentation about the program. The offer would apply to any buyer or seller client who contacts me through the program. Do you see any problem with this?

ANSWER: Yes. Although you may establish and advertise a program where you will pay a part of your commission to a charity designated by you or by your client, the charity may not help you advertise the program. The real estate license law prohibits a broker from paying any kind of incentive (cash or other consideration) to unlicensed persons or entities for the referral of business. That prohibition includes charities. In permitting you to have a link on the organization’s website and to appear at its events to explain your program, the charity is arguably helping you obtain real estate business, and unless it has a real estate license, you cannot pay any incentive to the charity for its assistance, even though it is passive in nature.

NC REALTORS® provides articles on legal topics as a member service. They are general statements of applicable legal and ethical principles for member education only. They do not constitute legal advice. The services of a private attorney should be sought for legal advice.

© Copyright  2016. North Carolina Association of REALTORS®, Inc. This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.