Q: As a life insurance agent, can I donate half my commissions to any parents at my daughter's school who purchases?
My daughter is in the Winter Park High School Band and we are always doing fundraisers. How much do we really make on selling coupon books or wrapping paper!?! I would like to approach the band director and offer to donate half my commissions to the band for any and all parents, grandparents, etc. that purchase a policy from my agency up to $1,000.00 (or a full half if the percentage needs to stay even). With 400 plus students in various music programs, even 5-10% could mean thousands in donations to the band. Imagine.... a true fundraiser that 95% of the parents DON"T have to participate in! I checked with my up-line and with our national sales director and both told me that "unofficially speaking, what I do with my commissions after I get paid is up to me". That statement didn't clear anything up. As far as rebating, this will be a third party donation, so it won't go to their kids band account, thus no direct benefit, so I fell I am ok on this...maybe.
A: This is not a legal question; and I am unaware of any federal or state law that would prevent you from giving away all of the commissions you earn on all the insurance sale you make to all of your customers. Responding to your specific question: The only "problem" I can see is going to occur at the school administration level. Having been in a high school band myself, and having been involved in fundraising for all of my three children's schools, I can predict that there will be several detractors at the school who will object--perhaps arguing that--to be fair--the school would have to allow all other children whose parents sell insurance (or sell sandwiches, or automobiles, or widgets, whatever) to offer "deals" to the parents of all the kids... Mark my words.
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