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 and shared services 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 tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. Tax-exempt status is reserved for qualifying nonprofit organizations that are setup exclusively for charitable purposes and are recognized as such by the Internal Revenue Service. We intentionally decided to be a for-profit business that distributes its profits to Beazer Charity Foundation. Beazer Charity Foundation is a non-profit organization that has applied for tax-exempt status as a section 501(c)(3) organization that intends to be classified as a private foundation for U.S. federal tax purposes. Pending the IRS's issuance of a determination letter recognizing Beazer Charity Foundation's tax-exempt status, Beazer Charity Foundation will distribute the contributions it receives from Charity Title to other established section 501(c)(3) charitable organizations that have been vetted by Beazer Charity Foundation or its affiliates. In the charity world, Charity Title is what is classified as a "feeder organization" because we're committed to giving all our profits to charity.
Beazer Charity Foundation is governed by a Board of Directors, which is obligated to use the Beazer Charity Foundation's resources solely to advance its charitable purposes. Beazer Charity Foundation will make grants to section 501(c)(3) charitable organizations, pay the expenses incurred with respect to carrying out its charitable activities, and set aside reserves to carry out future charitable activity and cover contingencies, such as to pay future pledges to charitable organizations, maintain funding capability to respond rapidly to emergencies such as natural disasters and cover unanticipated expenditures. In all cases, reserve funds can only be used in furtherance of Beazer Charity Foundation's charitable purposes.