When we say 100% of profits, we mean the funds left over after normal business expenses are deducted from all the income we derive from sales from our bath products. That income comes from sales of our products.
All businesses, whether they are non profit or for profit, incur normal business expenses required to operate, such as employee compensation and benefits, travel, cost of goods, transportation, warehousing, marketing and advertising, supplies, occupancy costs, taxes, etc. Management is responsible for preparing annual budgets, which are submitted for review and approval from a board that regularly uses third party studies to assess the reasonableness of our compensation scales. Our founder does not take a salary and acts in a volunteer position.
We use the profits to fund our charitable organization under section 501(c)3 of the Internal Revenue Service code, Mom Bomb. The charitable organization is governed by an independent Board of Directors, which is obligated to use the organizations resources solely to advance its charitable purpose. The organization makes grants to mothers in crisis, pays for other qualifying charitable expenses, and sets aside a small amount of capital reserves to carry out charitable purposes and cover contingencies, such as maintaining funding levels to respond rapidly to emergencies such as natural disasters, make program related investments, and cover unanticipated expenditures. In all cases, reserve funds can only be used for charitable purposes.