Community heroes

Coming to the aid of the less fortunate, supporting education, sport, culture and the environment, you could almost be persuaded that some mortgage brokers deserve their own comic strip.

However, according to some of the industry's philanthropists, community service is all part of the job.

The right thing to do

The main reason why brokers are getting involved with community organisations, sports clubs and charities is simple - it's the right thing to do.

So whether they put their hand in the air, or in their pocket, their motivations are altruistic.

"Clients add value to your business, and as a broker you're paid a trail to service your clients. I view servicing as a whole package - not just the loan application process," explains Smartline broker and MFAA broker of the year, Cathy Anderson.

Likewise X Inc broker, Tal Silberman, who is an avid supporter of the Jewish community, says that it is a lifestyle approach.

"I became a supporter of the Jewish community when I was born 37 years ago. The way I've always approached it is as an ongoing thing - as culture fitting in with work," he says.

"I firmly believe it's always good to put something back to the community."

SFE Loans broker, Sarah Eifermann, adds that sponsoring the community also allows brokers to have an active hand in improving their local area.

"I firmly believe in supporting the local community, especially the clubs that are involved in teaching our children discipline and skills for life, and keeping them out of menacing behaviours like drug and alcohol abuse," she says.

Getting the balance right

As most brokers know, every person belongs to a number of different social groups and communities - whether it is the area they live in, the clubs they belong to or the culture or religion that they follow.

So, when it comes to committing their previous resources to a given cause, they will be faced with a number of choices:

Right on the money

The first decision to consider is how much financial backing you would like to contribute to community service, and how you would like to structure that.

One option is to donate a percentage of your upfront or trailing commissions. As part of her ongoing service to her clients, Anderson donates a percentage of her ongoing trail commissions to community and charitable events. CEO of Donation Home Loans, David Phillipsen, also uses his trail commission. However, rather than offering a portion of his total, he donates a percentage of the trail from each client's loan to a charity of their choice.

"Any non-profit qualifies, so long as it's not seen as a political lobby group. We're comfortable to donate money so long as it's getting to people out there, [helping them] be positive about themselves, their lives and keeping out of trouble," he says.

Eifermann takes a different approach. She supports her local football club by offering a reimbursement of 20% of the upfront commission to anyone who gets a loan with her.

Another approach is to allocate a dollar figure at the beginning of the year. Silberman says this is a good system and allows him to give to his community and support charity work.

"The most important thing is to allocate as much money as you're comfortable with, set it out and then stick to what you've said you'll do," he says.

When to say no?

This is a trick question because, ideally, you should try not to say no.

Naturally, this can become difficult when the word spreads about your charitable nature, and more requests for support come through. However, while it's extremely important not to overextend yourself, according to the brokers who are out there already, it's better to give less to more people, than to turn people down.

"When I get approached by a few different people all seeking sponsorship, I try to give everything a little bit of my attention, rather than selecting one cause at the expense of the others," Anderson says.

"Even if you only donate a $70 hamper to a fundraising night, it's nice to say yes to something - even if it's just little."

Silberman also agrees that it's important to keep up a balancing act between different causes and clients. However, he cautions, it's important to work within your means.

"When times are tough, support is even more appreciated, but you have to ensure that you only do as much as you're comfortable with," he says.

"So you'll need to see what you can afford. And [if not money] you can volunteer your time."

Relationship building

As the saying goes "what goes around comes around". So, like any good deed, community involvement comes with a few fringe benefits.

For one, Phillipson says, charitable acts build credibility within a broker's business area.

"Supporting worthy causes gives us extra integrity in our business. In terms of where we are, what we do and where we're headed, Domain Home Loans has, and will always be well respected," he says.

Anderson agrees that brokers who are proactive and in touch with the needs of their community are seen as respected business people on a community level.

"A business can achieve some growth simply by touching people in lots of different ways," she says.

And, while giving something back, Silberman says brokers get a special chance to get to know potential clients.

"When you're associating yourself with a community through charitable events or other community based projects, you find that you're naturally socialising with members of the business community. And conversations naturally take place through networking, which allows you to build a network and translates back to more business," he says.

"It is another way of marketing yourself, while giving something back."

The home is where the heart is

However, while community centred brokers receive some business perks, they advise money hungry business opportunists to put their aspirations of grandeur aside. According to them if your heart's not in it, it just won't fly.

"I think a strong community ethos is required by any businesses looking to build credibility within their area. They do, however, have to believe in the community spirit and actually get involved," says Eifermann.

"It's no good throwing money at the club expecting business to just appear! It's kind of like networking without following up on the relationship - you'll never get anywhere."

Anderson shares this viewpoint. She says that the projects she supports are related to her local area, and to the clients she knows well. So as she supports the local football club, schools, art shows, Rotary events and fundraisers, she's taking part in watching her clients' children receive opportunities to play on selected sports teams, or to see improvements in her personal community.

"In terms of pure business, it's not essential to support these causes - it's very much a personal choice. And, on a personal level, it has rewards," Phillipsen concludes.

Broker heroes

Name: Sarah Eifermann
Title: Mortgage planner
Company: SFE Loans
Supports: Montmorency Football Club and Northern Football League
The choice: I firmly believe in supporting the local community, especially clubs that are involved with teaching our children discipline and skills for life.

I had contacts at the local football club. I'm not closed off to other clubs; however, generally speaking, the sporting clubs are in constant need of cash to upgrade facilities and equipment and are usually the most open to the program.

Name: Cathy Anderson
Title: Personal mortgage advisor
Company: Smartline, Blackwood
Supports: Local football club, schools, art shows, Rotary, fundraisers
The choice: I live locally and my business is located in the local areas, so the different things that I support are related to my clients. I like to think that 5% of my gross income is being distributed back into the growth of my business by way of community events.

Also a portion of every loan I write goes to charity, as part of something that Smartline does. Most recently the South Australian franchises raised money over three years to sponsor the building of the laundry in the Ronald McDonald house in Adelaide

Name: Tal Silberman
Title: Mortgage Principal
Company: X Inc Double Bay
Supports: Jewish community
The choice: I became a supporter of the Jewish community when I was born 37 years ago.

I contribute by sponsorship or on a volunteer basis by supporting functions, attending auction events and religious festivals. It's important to be involved as much as possible and it all comes down to personal perspective - you have to believe in what you're doing.

Name: David Phillipsen
Title: CEO
Company: Donation Home loans
Supports: A range of charities and community projects
The choice: When we started the business we wanted to add a bit of value back to the community, and my business partner and I are involved in the non-profit space so we extended that.

Our charity model is really driven by the consumer and where they want to direct their funds. We wanted to engage the client and have them decide where the money gets directed, so they feel more connected to the process, to us and to the organisation that they're supporting