Real estate companies are often among the most active community leaders when it comes to philanthropic and charitable giving. Various nonprofits and organizations will organize or attend events that help to raise awareness and funding for important charitable work.
But real estate companies in particular are known for hosting, sponsoring, and attending galas and other philanthropic events. They also appear prominently among the firms that write checks to the companies they’re supporting.
It’s great to see such generosity from local businesses, but their efforts to improve the community could be regarded as a highly astute business move in addition to being an act of goodwill.
Giving to schools increases market prices of homes in the area
Whether public or private, donating to schools in the areas where they’re selling homes is an incredibly sharp move on the part of a real estate firm. With today’s focus on education and more and more families wanting to give their children a head start by sending them to an excellent school, the quality of nearby education systems can dramatically raise the value of a home being sold.
By supporting an improvement in the quality of the schools they donate to, real estate companies are likely to raise the value of the homes they’ll be selling in the future.
Attending high-end galas involves networking opportunities
As any business person knows, attending a conference or special event that your competitors or potential partners are going to be present at is an important strategy for making your company grow. By attending galas and making public donations to charities, CEOs and agents can connect with other local businesses.
The partnerships formed can often lead to future deals, sponsorship opportunities, and marketing campaigns that go hand in hand with the efforts of those they meet.
Sponsoring charity events means positive advertising and branding
Real estate companies of any size can benefit from sponsoring or hosting a charity event. When they’re seen supporting the community by running a charity event, companies brand themselves as an entity that’s invested not just in selling homes, but making sure that the neighborhood people fell in love with continues to be a great place to live.
Tax deductions are available for less profitable or unsellable properties
In addition to donating money to local charities, some real estate companies will donate properties. These plots and structures are generally bestowed as gifts to be used as halfway houses, soup kitchens, and homeless shelters.
Because of the services these charities offer, they’re usually set up in less desirable neighborhoods. If a property has been on the market long enough, or its value is sufficiently low, the real estate company that donates it may be entitled to tax deductions that outweigh the cost of maintaining the building for the market.
The sight of a business donating to charity is always a positive event for the firm’s neighbors in the community. Given the state of today’s housing market, donating to a charity is a positive civic move as well as a good business tactic for real estate companies and other community organizations.
Originally posted on April 11, 2014 @ 10:46 am