Dreamers, visionaries or sharp business people? Carbon Catablog starts its first in a series on carbon offset providers, who neutralize the carbon of businesses and individuals in the not-for-profit way.

Through this series we’re hoping to make some sense of the voluntary offset market, so our readers can make more informed choices on where and how to offset. While non-profit organizations by law, must make their dealings transparent (i.e. how much offset money goes straight into the pockets of the projects), the market asks if in the long-run, this model can compete with the for profit sector.

We are asking the same question, and have touched lightly on the subject here (To Profit or Not To Profit). With so many questions unanswered, we go to the experts – the organizations who have opted to carry the non-profit status. And we plan on presenting interviews from for-profit providers too.

Today’s featured guest is Russell Simon, the communications manager from the USA-based Carbonfund.org. The organization’s motto is, “Reduce what you can, Offset what you can’t.”

Carbon Catablog: As a non-profit, what tax advantages can you bring to individuals, and businesses which purchase offsets through you? Please also clarify any restrictions.

Russell Simon: All donations to Carbonfund.org are tax-deductible, meaning that offsetting your carbon footprint is that much more affordable with us as opposed to a for-profit company. But yes, you do have to be a U.S. resident. We can’t speak for the tax codes in other countries.

CC: Aside from the tax benefits, do you think a non-profit organization is a more appropriate structure for a carbon offset provider?

RS: We’re a nonprofit because what we do is very clearly a public good. When individuals and businesses use us to help support projects that reduce greenhouse gas emissions, the benefit received – a cleaner, healthier planet – is a benefit for everyone. Being a nonprofit allows us to focus solely on our mission: reduce greenhouse gasses, fighting global warming, hastening the transition to a clean energy future.

CC: How would you respond to the criticism that only organizations which seek profit are likely to be run efficiently? Do you think you can compete with for profit providers over the long term?

RS: In theory, I suppose, I seem to remember my high school economics teacher telling me something like that. But the reality is that the efficiency with which nonprofits run their business are open for all to see. Our tax forms are available for download on our Web site, and they show that approximately 93 percent of revenue goes toward supporting our mission, with just 7 percent going to administrative costs. We would challenge any for-profits first, to open their books to that kind of scrutiny, and second, to show that kind of efficiency.

CC: Who are your biggest offset buyers - individuals or companies? Who is offsetting with you?

RS: Companies certainly account for most of our revenue, although we have had over 100,000 individuals also contribute. Our largest partners include Volkswagen, Dell, Allstate, Orbitz, Amtrak, and the Consumer Electronics Show.

CC: Do you have a favorite or most popular project?

RS: Yes, I do! It’s called Return to Forest, and it’s being administered in partnership with a nonprofit called Paso Pacifico. The project involves reforesting an area in coastal Nicaragua roughly the size of Central Park.

It’s one of my favorites because almost all of its funding comes straight from Carbonfund.org, and because it’s certified by the highest standards in the industry.

One of our staff members returned from the project a few months ago bearing hundreds of pictures and some shaky video of riding horseback and towing trees through Nicaragua. It’s a great example of the good work ordinary folks can support by donating to Carbonfund.org.

(see a full list of Carbonfund’s projects here)

CC: Please describe your organization’s rationale for becoming a non-profit. Is it a matter of ethics?

RS: As I said before, Carbonfund.org was founded as a nonprofit to provide a public good, and yes, we believe climate change is an ethical issue. That doesn’t mean for-profit companies aren’t also a crucial part of the solution; it’s just to say that we want to make every effort to keep our eye on the ball – and that means fighting global warming.

CC: How many tons of carbon did your org help offset in 2007?

RS: I don’t have the exact number yet, but we know that it’s more than 800,000 metric tons.

CC:. Do you have buyers from other continents?

RS: Yes! Although they make up a small part of our overall donations and I think most of them come from the UK.

CC: Thank you Russell.

We hope this interview with Carbonfund has been helpful. This organization is one of 10 USA non profit providers we have listed on Carbon Catalog. As part of our mission to provide unbiased and useful information to potential offset purchasers, we invite other non-profit and for-profit organizations to participate in this series.

Please email us karin (at) carboncatalog (dot) org, if you would like to have your say on Carbon Catalog. We also invite readers to send in their questions, and will do our best to have them answered by the experts.

Stay tuned.

(image credit doberagi)