Better Globe Forestry Ltd. (BGF) shares the profits generated by the trees our customers purchase and own. Over 20 years, the expected return from a single tree is €208.25, regardless of whether you purchase it individually, or it comes from the donation package.
Like all companies, BGF needs money to run its business. From the very start, they dared not rely solely on people’s goodwill and contributions. Instead, BGF, as a social enterprise, chose the commercial way of reducing poverty through social entrepreneurship.
When you purchase trees from us at Better Globe AS, we use BGF as an agent to plant the trees and take care of them. And after 20 years, the trees have been repurchased by BGF from our customers. As a customer of Better Globe, you get to keep the majority of the financial yield your trees create.
Your trees are planted to produce sustainable FSC certified wood products in the future. But you also get a return from additionally planted cash crop trees, such as Moringa trees. In this process, BGF also gets money from selling Moringa powder, which creates a true win-win situation. And since the whole process helps counter extreme poverty in some of Africa’s arid and semi-arid areas, while restoring these degraded lands, we believe this to be one of the best ways you can help end extreme poverty in Africa.
Although many of us try to make ecologically smart choices, shop eco-products, and generally try to make wise and environmentally conscientious choices, most of us forget to consider the power of our savings.
In many ways, money creates and defines our future. Companies that receive our savings, either through investments or us buying their products, use our money to develop and sell more products and services in line with consumer demand. Every time you invest or spend your money, you also vote for what kind of future you want to live in with your family. BGF intends to be an ethical, sustainable, and socially responsible long-term alternative to traditional savings. So far, they have succeeded well with that.
The expected return from each tree
When you buy a tree from Better Globe, BGF plants it, takes care of it, harvests up to two trees, and gives you a predetermined yield for your tree based on those activities. In all its simplicity, it works as follows:
- Year 1: You buy the tree and BGF plants one or more trees
- Year 1 – 4: The trees grow, there is nothing to harvest yet, and you get no return
- Year 5 – 19: The cash crop trees are in production age, and you get €2.55 per year for 15 years
- Year 20: Your tree is felled and repurchased at €170 and will be used to produce sustainable tropical hardwood products
Summing up the return you get from the trees you own through us; it looks as follows:
- Year 1 – 4: No return
- Year 5 – 19: 15 years x €2.55 = €38.25
- Year 20: €170
- In total = €208.25
In this context, we need to point out that there are no guarantees. What we have shown you is an expected return. Like in all investments, there are many risks involved in BGF’s tree planting initiative. You can read more about that here. However, we have historically paid out returns to our customers according to the above model every year since 2010. Everything indicates that both Better Globe AS and BGF will be able to keep these commitments in the future as well.
The expected return from a donation package
A donation package consists of:
- Two trees that you own
- Two trees that are donated
- €1.50 towards education
- €1.50 towards microloans
- 500 liters of water
The return from a donation package is twice as large as for a tree: 2 x €208.25 = €416.50 over the same 20 years. However, the percentage of return is a little lower than that of purchasing individual trees. Still, considering all the good that the donation package contributes to, we hope you consider buying it to increase your social and environmental impacts in Africa.
Our best advice to our customers: regular savings
Although it is possible to purchase trees and donation packages on occasion as it suits you, we recommend regular savings in trees through a subscription. Saving some of your money in trees and donation packages over time is the best way to increase your financial returns for the years to come. And it is the best way to help us in the Better Globe Group reduce extreme poverty in Africa and create a greener future.
We also reward all customers who regularly save in both donation packages and trees. With regular savings, you can earn bonus trees from us and significantly increase your social and environmental impact, as well as your long-term profit.
Common questions regarding the financial returns
How do I get my return?
At the end of the year, usually at the end of November or the beginning of December, we pay out the return from your trees to your Better Globe account. You can access it when you log in with your customer number (AID number). From there, you can withdraw your money (minimum €100) to your bank account. Or you can reinvest the money in new trees. Customarily there is a short campaign with a small discount available for reinvesting. Using some or all of your returns to repurchase trees will give you a slightly higher return than usual and increase your trees' economic performance.
How are the returns from the trees taxed?
The returns (profits) from the trees are taxed according to the country's rules in which you pay your domicile tax. Remember that you, in most countries, are liable to pay taxes even if you reinvest the returns in new trees.
Will the return change if the company performs better/worse?
The short answer is no. From a technical perspective, you can look at it as if the tree purchases were an “investment.” We repay this “investment” through repurchases with a predetermined interest rate of €2.55 per tree from year 5 to year 19. And we make the final repurchase of €170 year 20.
Is it guaranteed that I will receive the money?
No, just as with any other investment, there are no 100% guarantees. We see it as highly unlikely, but should the worst possible occur, you could potentially lose your entire stake. However, both BGF and we work continuously to minimize and eliminate risks. We are also confident that for every year that goes by, risks are diminishing as more and more trees are planted in different parts of East Africa. With us, you do not own a specific tree. You own a tree in the total pool of trees. And we repurchase your tree with the revenue BGF generates for us from sustainable products that they can manufacture and produce from up to several different trees. Our first customers in 2006 took a far higher risk by betting on our success than any customer will ever do today.
Save some of your money in trees and help counter poverty
If you want to join in and make a difference in East Africa, contribute to a better world, and manage your savings in an ethical, sustainable, and long-term way, click on the link to our shop and make a socially responsible purchase with us today.