We are proud of our "100% of Profits to Charity" commitment and want to be clear about our pledge. "100% of Profits to Charity" means that we contribute all available profits from our title agency business, after accounting for normal business expenses, taxes and reserves. Like all businesses, we have typical costs associated with the effective operation of our business, including things like employee compensation and benefits, travel, marketing, supplies, facility costs, taxes and business expenses involved in the search, examination and issuance of title insurance policies. Plus, we're required to maintain reasonable working capital and reserves for accrued and contingent liabilities.
It's important for you to know we're not a 501(c)(3) tax-exempt organization. That status is a very specific tax exemption for nonprofit organizations that are setup exclusively for charitable purposes. We intentionally decided to be a for-profit business, that distributes its profits to various charitable organizations. In the charity world, we are what is classified as a "feeder organization" because we're committed to giving all our profits to charity.
Disclosure: We evaluate charitable contribution recipients utilizing third party evaluation tools to ensure funds are used efficiently and make tangible impacts. Since no charitable contributions are made in connection with an individual transaction, customers do not select the recipient of charitable contributions. Charity Title Group will publish an annual impact report and anticipates the first report being available following the first full year of operation (Summer 2021).