Donating Free Appraisals...Seems Like a Bad Idea

[glenn walker]

It could potentially benefit me, but only if I captured the business... both would still be considered donations, no?

Not by the IRS one is a business expense the other is a Charitable Contribution, Normally the test is A Charitable donation is given with anything expected in return, where as wining and dining potential or existing customers is done with a expectation of something in return. NOW WE all knows its semantics as many Donations are given to get something in return so just a legalized bribe , that's what most Foundations are set up for LOL

 

[Mark K]

... both would still be considered donations, no?

No. The Gift card is a donation. The appraisal "donation" is simply lost income.

 

[Sadie]

No offense but what a pathetic idea for a prize !
Offer instead to pitch in and buy a real prize to donate to the raffle, or just donate $ to the scholarship fund.
I agree it is a bad idea for reasons you gave.

I've never been asked to donate an appraisal for free but I once volunteered to do a huge mass appraisal for houses being used for kids in a foster program - I charged just enough to cover a small bit of my time, $500 on a job that was worth $3000 or more for appraising 10 houses in the community they used for a group home foster care of each

I have done pro bono work for Habitat for Humanity. Different from a raffle prize though.

 

[J Grant]

I have done pro bono work for Habitat for Humanity. Different from a raffle prize though.

Good cause ! I have heard of Habitat for Humanity needing appraisals from time to time. If asked I would do one pro bono

I think offering an appraisal as a "prize" to a person who may have no desire for one is absurd, and stupid of that RE board. What a pathetic idea-
It reminds me of the old joke:
"First prize , one week in Pittsburgh. Second prize, two weeks in Pittsburgh."

 

[Sadie]

Good cause ! I have heard of Habitat for Humanity needing appraisals from time to time. If asked I would do one pro bono

I think offering an appraisal as a "prize" to a person who may have no desire for one is absurd, and stupid of that RE board.

Agree, kind of weird and the appraiser would be in a real bind if the assignment was complex or beyond the scope of their license.

 

[Sandra Koutsopoulos]

Way back when, I had an economics class which talked about baking bread and pizzas in the same oven, (different temps, so not at the same time of course) so if you're spending time doing X, you can't use that same time/space for doing Y; therefore doing a "free" appraisal is costing your time at the very least when you could be doing something more productive, like doing an appraisal for PAY, or even taking the day off and having a snooze, which could also be beneficial to you. So FREE ain't FREE. Also, what are the odds of the person who is volunteering your time being willing to give up THEIR full day's gross income, and then having to re-work their monthly budget, let alone having the potential of the recipient coming back to waste more of their time to explain why this or that value/adjustment and potentially argue about it?
Yep, a $50 donation is a better bargain, and make sure your name and company are emblazoned on the donation card so they remember you donated to their cause.

 

[Sadie]

Way back when, I had an economics class which talked about baking bread and pizzas in the same oven, (different temps, so not at the same time of course) so if you're spending time doing X, you can't use that same time/space for doing Y; therefore doing a "free" appraisal is costing your time at the very least when you could be doing something more productive, like doing an appraisal for PAY, or even taking the day off and having a snooze, which could also be beneficial to you. So FREE ain't FREE. Also, what are the odds of the person who is volunteering your time being willing to give up THEIR full day's gross income, and then having to re-work their monthly budget, let alone having the potential of the recipient coming back to waste more of their time to explain why this or that value/adjustment and potentially argue about it?
Yep, a $50 donation is a better bargain, and make sure your name and company are emblazoned on the donation card so they remember you donated to their cause.

Isn't that called Opportunity Lost?

 

[Sandra Koutsopoulos]

...or Opportunity COST! ;-)

 

[Fernando]

Imagine if an CPA raffled his/her services for free. Simple tax return, ezy pzy.
Mine, accountant would be losing thousands.

 

[Sadie]

...or Opportunity COST! ;-)

I was taught opportunity lost. Both I think are similar and applicable.