FOR MANAGERS
Best Practices
Corporate giving
Doing good while doing well
BY LUCIEN SALVANT
The economic boom of the 1990s brought record-setting home sales and prosperity to the real estate industry. But the country’s real estate corporations--large and small—didn’t take the money and run.
In this season of giving and sharing, it’s worth noting that real estate companies are giving back to their communities in a big way.
What they’re doing and how they’re giving vary--depending on inclination and corporate culture--from building homes to donating to favorite targeted charities.
For most, it’s total company participation, with broker-driven fund-raising events supported by sales associates and matched by corporate headquarters.
What the companies get out of it is good public relations. What the individual practitioners--and even the corporate executives--get is a sense of well-being.
Says Alex Perriello, president and CEO of Coldwell Banker Real Estate Corp.: “As a real estate company, we’re very successful. We should give back to those who need help in homeownership.” Coldwell Banker raised more than a half million dollars for Habitat for Humanity last year and kicked in with 20,000 hours of labor on building houses.
Realty Executives International, considerably smaller than Coldwell Banker, also has a goal of a half million for Habitat next year because of a new, vigorous giving program. “Sure, we get good PR out of it, but we also have to perform,” says Rich Rector, president. “Our starting point is, Let’s do good first, and the PR will follow.”
There are many individual stars in the corporate-giving constellation. One is Bev Widney, director of public relations for Dilbeck,
REALTORS®, Better Homes and Gardens (now GMAC Real Estate), LaCanada, Calif. Widney, who recently completed a 56-mile charity walkathon, sums up the better-than-receiving philosophy well: “It’s good for our company, good for our souls, and good for morale. We get to do all these good things for people, and that has a great impact on the community.”
As attention turns this month to making gift lists, writing cards, and phoning and visiting loved ones, here’s what some realty companies are doing to make giving a year-round enterprise.
Inner City Games
The largest of all real estate corporations, Cendant Corp. in Parsippany, N.J., uses the power of its network--Century 21, Coldwell Banker, and ERA, plus its affiliates--to promote donations from the franchisee level, says Ted Deutsch, director of public relations. A sponsor of the Inner City Games, which promotes sports, recreation, arts, and other positive after-school experiences for inner-city children, Cendant has given more than $2 million in 13 different cities since it started participating in that venture in 1998.
As Cendant’s largest subsidiary, Century 21 Real Estate Corp. is also a big-time supporter of the games, contributing about $200,000 in 1999.
But by far, Century 21’s greatest efforts over the years have gone to Easter Seals. Since the company forged its partnership with Easter Seals in 1979, the largely broker-driven program has raised more than $62 million for children and adults with disabilities.
Since 1992, Century 21 has raised more than $100,000 annually in support of Easter Seals Child Development Center in Atlanta. The center provides speech, physical, and occupational therapy for preschoolers.
Miracles for children
The RE/MAX International–supported William Beaumont Hospital in the Detroit area is home to the RE/MAX Communication Station Preschool. At the preschool, RE/MAX sales associates’ contributions provide for children to develop speech and language skills.
RE/MAX’s main program, “Miracle Home Project,” is aimed at children. Partnered with the Children’s Miracle Network, RE/MAX, through its local offices, contributes to 170 hospitals in areas where RE/MAX sales associates live and do business. Since 1992, RE/MAX sales associates have raised almost $20 million to help 12 million children annually who need medical care for trauma, illness, or birth defects, says Carolynn Bond, RE/MAX community affairs director and liaison to CMN.
One hundred percent of RE/MAX funds go directly to CMN and hospitals, says Bond.
“Children are important--they’re our resources for the future,” says Bond. “Taking care of them is taking care of ourselves.”
Linking on the links
Unique among charity venues is RE/MAX’s private golf course, Sanctuary, in Sedalia, Colo., surrounded by 4,000 acres of wildlife, open range, and wide cart paths. David and Gail Liniger, owners of RE/MAX International, use it strictly for charitable promotions and fund-raisers for various organizations.
“And that’s all it’s used for,” Bond declares. Play is by invitation only, and all moneys--including a check from RE/MAX--go to the charity sponsoring the event, not to RE/MAX.
Collectively, 20 charities have raised almost $3 million in two seasons of play. In 1999, 17 charities hosted events at Sanctuary, including the American Heart Association, the Anchor Center for Blind Children, and the Susan G. Komen Breast Cancer Foundation.
RE/MAX corporate headquarters puts together the programs, dedicates the resources, and handles administrative and financial tasks. “We make nothing on this,” says Bond. “But we’re aware that people will make buying decisions with those who are involved in the community. And our studies show that it’s the successful sales associates who are the most involved.”
Jerry’s kids
For 22 years, ERA Franchise Systems Inc., a subsidiary of Cendant, has been the sole corporate real estate sponsor of the Muscular Dystrophy Association. ERA brokers and sales associates have raised more than $28 million, including more than $1.1 million in each of the past two years.
To acknowledge members for their time and energy in raising donations for the MDA, ERA recognizes top contributors annually. They receive a framed print of a painting from the MDA National Art Collection and a thank-you letter from Jerry Lewis.
Brokers from the top company present the ERA contribution to Jerry Lewis on national TV during the Labor Day telethon and receive a free vacation trip from ERA.
Have hammer, will travel
That Coldwell Banker and Realty Executives both chose Habitat for Humanity for their corporate giving isn’t surprising: Building houses fits the real estate industry. But the companies go about giving in different ways.
“Build Dreams With Habitat for Humanity” is the Coldwell Banker Real Estate Corp.’s program, started in 1993, and it centers on brokers raising funds and rolling up their sleeves for Habitat projects.
Henry Londo is a Coldwell Banker star. A hands-on guy, Londo has made himself quite at home with Habitat for Humanity for most of his 13 years in real estate. The co-owner of Coldwell Banker Keefe–United Real Estate in Janesville, Wis., received the Golden Hammer Award this year from Perriello for his dedication over the years.
Two years ago, Londo traveled to Pikeville, Ky., to work with first lady Hillary Rodham Clinton on a Habitat project. And Londo doesn’t stop at the U.S. border. Earlier he trekked to Vac, Hungary, to swing a hammer with former President Jimmy Carter. And he’s gone as far as the Philippines to put nails in boards.
Why is he so mobile? “I’ve been very successful,” says Londo. “I like to give back to the community. I work with a lot of people who can’t afford a home, so this is a way to help.
“I love to see the change in them when they build their own home; see their self-esteem change; and see them when they get the key.”
Putting people in houses
Realty Executives likes that roll-up-your-sleeves-and-get-to-work mentality. The Phoenix-based company joined the Habitat for Humanity program about two years ago.
Says Rector: “When you build a shelter, you can see where your money ends up. It really brings to life what we do for a living--putting people in houses. We try to take on one thing and do it well.”
Realty Executives’ new giving program, unlike Coldwell Banker’s, sets a goal for each office to achieve. With a corporate goal of a half million dollars annually, it means that each office contributes $1,000 a year--about $20 a week. “The person who buys doughnuts for the weekly sales meeting spends that much,” Rector observes.
The company has built five houses so far during its involvement with Habitat. Corporate pays the administrative costs, “so the sales associates are assured that each dollar they contribute goes to the project.”
For the Davids, too
You don’t have to be big to give big.
Dilbeck, REALTORS®, in LaCanada, Calif., has 450 sales associates and brokers in 11 residential sales offices in Southern California. Each office participates in whatever giving project it chooses: kicking in to buy Easter bunnies for a special raffle--the bunnies go to children, the dollars to a community center; Christmas drives to get toys for abused children; food drives for the hungry; blanket and coat drives for the homeless.
Many Dilbeck employees are given time off to help elementary school children learn to read. And several offices participate in Red Ribbon Week, the national program in which junior high students and adults wear wristbands as a reminder to “just say no” to drugs.
Bev Widney, the company’s public relations director, took that 56-mile, three-day walk sponsored by Avon to collect donations for breast cancer prevention research. There was a $1,700 goal for each of the 2,900 walkers, she says. Widney collected $7,300 from Dilbeck sales associates. To honor them, she wore a necklace made of laminated pictures of her supporters. “It was amazing,” says Widney. “I was interviewed for TV, and now people come up to me saying, ‘Oh, you’re the necklace lady!’”
October ushered in a new era of giving for Dilbeck. Mark Dilbeck, president, and his board set up the Dilbeck and Associates Charitable Foundation. The company donates $5 per transaction to a special account and asks sales associates to voluntarily match that for each closing. Lynn Beckenhauer, chief operating officer, says that in 2000 the company expects to raise about $40,000, which will be donated to various recipients.
