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Why Calyan Donates Percentage of Revenue and Not Profits

5% of all Calyan REVENUE is donated to bring hope and freedom to brave survivors of human trafficking in America. Over $122,000 raised for our partner non-profit as of May 2021.

calyan wax co  donation photo october 2020

This photo is from a donation we made to Traffick911 in October 2020

 

We're used to hearing all the time,

"Calyan Wax Co. donates a percentage of their profits toward fighting human trafficking." 

As you read this somewhat vague statement some questions should come to your mind. 

What's the percentage? 1 percent? 10 percent? 50 percent?
What are your profits? How are they calculated? Is your company even profitable?
How much are you actually donating to end trafficking?

We believe in complete transparency and openness with our donations and our cause. We want you to be confident that every time you shop with us, you really are making a donation and you really are making a difference. 

Calyan Wax Co. donations are based on revenue and not based on profits because revenue allows for greater impact and for greater transparency with our customers.

This is good news, y'all. 5% of revenue is better than 5% of profits. It's more money donated AND it's easier to calculate.

After reading this blog, you will be able to calculate (down to the cent!) the amount you are donating every time you purchase one of our delicious candles. 

We get it, financial talks can be boring! We promise this will be quick and painless! 

table full of natural soy candles calyan wax co

WHAT IS REVENUE?

Revenue is simple. It's how much money your business generates in a given time-frame. So if Calyan sold $100,000 in candles last year, that's $100,000 in revenue. Revenue is determined BEFORE you start factoring in expenses like buying your materials, paying rent, paying your employees, marketing costs, etc. Once you remove those expenses from your revenue, that's where profit comes in.

WHAT IS PROFIT?

Now that you know what revenue is we can talk about profit. Profit is simply your revenue minus your expenses. Obviously, this is a much smaller number than revenue. If your revenue is $100,000 in one year but you spend $90,000 on various expenses, then your profit is $10,000. Expenses can include hiring a team, constructing a new building, paying for ads, and so much more. For those who love math here's a formula, REVENUE - EXPENSES = PROFITS. 

For those that don't like formulas, we're sorry to give you flashbacks to high school math.....

WHY DOES CALYAN USE REVENUE TO CALCULATE DONATIONS?

Two reasons: 1) we want to be as impactful as possible and 2) we want to be completely transparent about every dollar raised. 

5% of revenue (total sales) is a MUCH larger number than 5% of profits (total sales minus expenses). By donating 5% of our revenue, we can donate MORE and have a GREATER impact together as we work to restore dignity and hope to survivors of trafficking. 

Revenue is also a simple number to calculate. Let's say you bought 3 candles for $60. 5% of $60 is $3. There you have it! You've calculated your donation. This calculation will not work with profits because to calculate profits we have to factor in expenses. 

So you can see why the distinction between revenue and profit is a big deal for us. We aim for total transparency and greater impact and donating based on revenue allows us to do both! 

IS THIS NORMAL?

Is it normal for a company to donate 5% of their revenue? The quick answer is no. It's not normal. "5%" may seem like a small number, but when you apply it to revenue, it can add up really quickly. But for us, that's the whole goal!

As we grow, our mission is the same: invite the everyday person to enjoy amazing candles and help raise money for anti-trafficking non-profits. You can join this mission today by enjoying a beautifully fragrant 100% soy wax candle. You can be sure that 5% of every purchase you make on our online store will be donated to bring hope to others. Thanks for bringing light with us!

Click here to start shopping candles.

Click here to read about our mission.

cedar tobacco black tumbler soy candle on table