Question

Topic: Strategy

Philanthropy Program??

Posted by Anonymous on 8/8/2006 at 8:19 PM ET 50 Points
I am trying to find an edge to some marketing and to help people remember and me and say- hey, that's pretty cool. My idea is this...
I'm a mortgage broker- and want to put in place a philanthropy program where for every loan closed- i donate $100 to a charity the client has chosen from a list i have generated.
I donate money to charity quietly on an annual basis- so this isn't new. It's just a way to make my clients feel good about spending a lot of money on their home purchase and helping me chose charities to donate to. It's also a way for people to remember me and realize that i do good for the community.
Do you think this is a good strategy for people to remember me thus refer me business in the future and use me again in several years? (people only get mortgages on average every 3-5 years)
I want some advice from a marketing point of view.
Thanks!!!
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RESPONSES

  • Posted by wnelson on 8/8/2006 at 10:15 PM Accepted
    Using philanthropy as a marketing tool will only work for clients for whom philanthropy is important! As a "consumer" of mortgages, if I had a choice between a broker who was philanthropic and one that wasn't.....and the loan deal was exactly the same, I'd probably go with the philanthropist. HOWEVER, I'd be suspicious on any broker who advertised he gives $100 to a charity. I'd think, "HE'S donated MY money and getting credit for it! I'll bet I can find a broker who doesn't donate and will ask me for less money!" But, that's just me...one consumer.

    The point is that if you want to be the best broker, you have to satisfy the needs of your customers better than your competition. If one of the key needs is "a broker that's philanthropic" - you're golden! You have the formula down! BUT, I suspect this is small compared to LOWEST closing costs, LOWEST interest rates, being the most creative to find the perfect loan for the specific situation for the customers.

    I hope this helps.

    Wayde
  • Posted on 8/8/2006 at 11:19 PM Author
    I really like all of your imput and see your points. The truth is- I would be donating the $100 out of my commission (which the $100 would NOT be built into) but there are people who would prefer for me to give that money to them rather than charity or wonder if i charged them more to be so generous.
    So how about this idea... (this is off the top of my head)
    I give the option for the client to get $100 credit towards their closing costs OR they can put it towards a charity?
    Or i can just scrap the entire idea and just talk about charity giving in one of my newsletters.
    I'll leave that last question and then close this up- i'm really grateful for your input.
    Allison
  • Posted on 8/8/2006 at 11:30 PM Author
    It does bum me out a little that I am wanting to do this out of my pocket (and not charging my clients more to cover the cost) but it could be perceived as otherwise. I just like connecting it to my biz because it would get people thinking about donating to charity and letting them get involved and feel like they're participating. Plus- it keeps me on track- once I put out the committment I would be donating more regularly. I like the idea of being a good role model and not just a greedy mortgage broker trying to make a lot of cash off people.

  • Posted by wnelson on 8/8/2006 at 11:59 PM Accepted
    Allison,

    As Randall and Deborah said, your sentiment toward charity is very good. Your desire to be a role model is very admirable. Philanthropists like Carnegie parts of their emmense treasure all over the country and millions of people today still benefit from libraries and schools. Today, Bill Gates donates billions a year - and most people don't realize this because it's largely donates anonymously. Ted Turner donated $1 billion to the UN over a period of several years. All of these are very worthy and noble deeds.

    Tying these acts to business or giving them public attention, however, my provoke suspicion or cheapen the true intention. Be an example in your community by being chritable with your treasures and your time. Be a good business person - always fair and honest. And keep the two separate. If you want to highlight charity in your newsletter, then bring attention to charity of others, not your own acts.

    Wayde

  • Posted on 8/9/2006 at 8:47 PM Member
    I have to disagree with most. I own a photo printing and custom framing business. We donate 5% of all frame jobs to our local schools to be used in their visual arts programs. Our customers get to choose which school gets the donation, or they can choose a general fund where it is distributed evenly. On the whole, it works very well and is well received, by both our customers and our schools. We gave a name to the program, Support Young Artists Program.

    We have always donated to the schools and very much believe in supporting the arts programs. We decided to tie our business to this, figuring why not get some favorable credit for it too. If our business does not perform, we can not make the money to donate it.

    Part of why it works for us is that it relates to what we do. Perhaps consider charities, if of course they are ones you believe in, that help families with housing, emergency funds for displaced families, affordable housing, habitat for humanity, etc.

    And last, we are considering asking people if they would also like to contribute to the program at the time of the sale. Let them feel good about giving and have a chance to take ownership of the program. It will spread the word and make it that much stronger. And in the end, everyone wins. Especially those receiving the badly needed funds.

    John
  • Posted on 8/11/2006 at 10:07 AM Member
    Another idea is to start a grant program for a visible community event or program you feel is worthwhile. You make a substantial contribution maybe annually or at some plannable frequency and your business name is associated with the event or program. If there's a good connection between the charity and your business, the publicity might be as good as the idea you're proposing (or better); plus your gift would be more effective in helping one or two good programs significantly, rather than making many scattershot small contributions that are less visible. This could have more impact in building your image as a community minded business, as well.

    Marge
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