While the past few years have seen difficult tidings for the New York real estate market, 2024 ended on a strong note. In New York, optimism is high that 2025 will be a year of growth as mortgages mature and as we see rate cuts from the Federal Reserve. This optimism has held true for all of the U.S., as CBRE is projecting an increase in commercial real estate volume in 2025 nationwide. This growth is a testament to the great work the commercial real estate community has done to weather taxing conditions and find new opportunities for growth. But as we look ahead this time of year, it may leave one to ponder – what more can we do? How can we take this success a step further, and use our positive energy and influence to support our communities?
Amid the challenges of the past few years, we should be proud of the industry’s continued dedication to giving back. The 2024 Community Aid and Real Estate Report, published by the National Association of Realtors®, showed that in 2023, giving continued to grow in the real estate space. Nearly seven out of 10 members of the association volunteered monthly and roughly 86% of members made donations in 2023, showcasing a strong philanthropic dedication.
This comes at an important time, as our communities navigate a range of growing needs, including food insecurity, education, homelessness, disaster recovery and much more. As we celebrate improved market conditions and a better outlook in 2025, commercial real estate businesses should take time to reflect on their current philanthropic work. While the industry has made strides in giving, there’s always work that can be done to improve, particularly as companies have more resources and time available in a better market.
To make a greater impact, we need to be more deliberate about our philanthropic work. In difficult conditions, it can be easy to give without a plan to simply check the box. Giving without a plan and without a connection to your mission or your team can limit the impact of volunteer work and even monetary donations. Business owners in our sector would be best served by defining goals aligned with missions and by building a plan that supports the team’s interests, your mission and the needs of the community.
As the chair of the grants committee in the Northeast Division of the Insurance Industry Charitable Foundation, the philanthropic foundation of the insurance industry, I have seen firsthand how powerful both monetary and volunteer support can be when given to organizations that meet your company’s values and ideals. A strong giving program can make a tremendous community impact while also supporting your business goals. This starts by reviewing your giving process.
How to find the right nonprofit partner:
The first step to finding the right nonprofit partner is to find the causes and organizations that resonate most with you and your team. There are so many different options in New York alone. Take the time to survey your team and find issues that excite them. Carefully identify causes that align with your values and mission to narrow your list down to nonprofits that support those causes.
From there, be thoughtful in vetting a good nonprofit partner. Here at the IICF, we have a comprehensive review process of our nonprofit partners. Our protocols require nonprofits that apply for grants to undergo a thorough review and vetting process where our team takes a deep dive to understand their approach, their goals and their impact. The nonprofit is asked to give a virtual presentation to discuss their mission and the communities they have supported. In addition, we like to schedule in-person site visits, where our IICF team walks through the nonprofit’s location to truly get a feel for what they do and how the grant money would support their operations and serve the community. This also enables us to talk to the beneficiaries of the nonprofit’s services to hear the powerful impact they are making on a more personal level.
While our process may not be realistic for all businesses to implement, a thorough vetting of potential nonprofit partners can be critical. At minimum, request references and if time and resources allow, try to make the time for a site visit. There’s no better way to evaluate the great work a nonprofit is doing than to see it up close.
Success stories:
Supporting a cause for which your team is passionate can pay incredible dividends.
Annually the IICF hosts a Northeast Benefit dinner gathering insurance industry and business leaders for a night celebrating philanthropy and our community. This December, we were not only able to join together and enjoy each other’s company, but our dinner raised a record $1.4 million dollars, with the proceeds benefitting 14 nonprofits in the Northeast community. In the past, we have seen our grants support the National Alliance on Mental Illness (NAMI) as they moved into new headquarters, provide critical funding for educational resources for Horizons of Bridgeport and aid the Mt. Kisco Child Care Center in their efforts to support women entering the workforce with childcare.
These success stories are not only heartwarming, they can also translate to great business value. We know that Gen Z and millennials want to work with businesses that are dedicated to making socially-conscious decisions and supporting those in need. A commercial real estate company that has a strong philanthropic footprint will be much more enticing as both a prospective employer and as a client.
Commercial real estate companies have clearly made philanthropy a priority to great success in recent years, but we can continue to grow this impact. A more focused approach to giving can help our industry make sure we are meeting charitable goals that greatly impact the communities where we live and work. Consider investing the effort and formalizing a charitable giving plan that resonates with your mission and your team members. Take the time to truly vet and understand the nonprofits in those spaces and then, take pride in the difference you are making to improve social good.
Jeff Rubin is executive vice president of client advisory & HUB healthcare solutions at Hub International and chair of the IICF’s grants committee, New York, NY.
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