Carbon Catalog was started earlier this year to put some order in the carbon offsets buying process. While our database offers an unparalleled starting point for one’s research (it’s like the IMDB for carbon offsets), the onus is still on you – the buyer – to make your money talk.
Even something like offset-buying for staff Christmas gifts, we’ve noticed, is a confusing business because pricing between organizations can be wildly different. We know it’s hip and chic and socially responsible to buy offsets, but it’s also not cool to spend money on something without comparison-shopping first.
That said, our question for the day is, “Should business owners buy offsets from registered companies or not-for-profits? Does it matter?”
In our database, you can cut through the muck pretty quickly, by choosing offset Type as Non-Profit or Company. But what does this all mean? Does it suggest that briefcase-toting capitalists should all buy offsets from companies and the green-loving hippy types, buy them from non-profits?
Not exactly. How-to shopping guides for offsets are cropping up on the Internet, faster than we can say “organic mushroom.” And we have a good starter guide as well. But it took us forever (15 minutes of Googling) trying to find an online source that answers our question above. Our source was found in Australia.
According to the May 2007 report, “Global Sustainability” at RMIT University” in Melbourne, “not-for-profit entities will often offset an amount of CO2 on behalf of a business in return for a tax-deductible donation to the organisation.”
The report continues, “For business, this does not really alter their financial bottom line compared with having the offset recorded as an expense purchased from a for-profit entity, it is more of an issue for individuals seeking tax-deductibility.
“Tax deductible donations are contingent on the donor not receiving any material benefit from the donation. This is why the not for profit organisation offsets on behalf of business. To date no conclusive tax ruling has stated whether “donations for offsets” is a material benefit, discussions between offsetters and the ATO are occurring.
“Not-for-profits are generally offering offsets which align with their environmental
ideology, and business should consider whether there are any conflicts or synergies with their own business strategy.”
<End of report>
Hmmm. Are you as confused as we are? The “non conclusive tax ruling” has thrown us for a loop. We need to find experts who can give us some more concrete answers. If you have any specific questions relating to this topic, send them in and we’ll do our best to find the right people from a few different continents to give you answers.
::Global Sustainability at RMIT University (PDF)
(image c/o violator3)