HOW DOES TREE PLAN WORK?
The idea of planting one tree for every consumer purchase sparks the imagination! It’s a beautiful dream, but the reality is much harder to achieve. Non-profits could be created to receive donations and plant trees, but donors would not be able to deduct 100% of their support from their taxes. There are exceptions in which donations can receive a 50% deduction, but never 100%. Also, a non-profit arrangement cannot achieve the scale of re-forestation that Tree Plan aims to create. You see, it’s much easier to deduct donations for a local tree planting program than it is to deduct for a program overseas. With programs around the world, this poses a challenge.
Many people show interest and are willing to support the cause of increased tree planting, but not to the point where it hurts them financially. We set out to create a system in which partnering businesses can support Tree Plan and then deduct 100% of their support from the company’s taxable income.
To realize this goal, we’ve structured Tree Plan so that all of our partnering businesses are invoiced for their use of us as a marketing project. Tree Plan is associated with products in marketing materials, adding the benefit of tree planting to the consumer’s purchase. This marketing focus makes business support for Tree Plan 100% deductible. While that does solve a big problem, there’s still one more challenge.
As Tree Plan receives marketing income from their partnerships with other businesses, then Tree Plan itself ends up with taxable income. This support money is considered profit for us and is not deductible. Tree Plan ends up with a profit and needs to pay taxes on that profit, hampering our goal of planting the exact number of trees that our partners paid for.
We need to keep things both cost-effective and transparent, so our partnering businesses pay a little bit of extra money for each tree that they plant. This leaves us with the financial space that we need to buy and plant the exact amount of trees that our sponsor companies have sponsored. It allows every consumer to have the confidence that when they buy a product that has partnered with Tree Plan, the promised trees will be planted. Tree Plan can plant trees, run the business, and pay taxes, all while keeping things open and clear throughout the entire process.
Together, we can reduce the de-forestation of our beautiful world, and plant lush new forests that will thrive and cleanse our environment for years to come.