Better Globe Forestry Ltd. (“BGF”) share the profits from the trees with their owners. Over a 20-year period, the expected return from a single tree is 208.25 €.
Like all companies, BGF needs money to run our business. From the very start we dared not rely solely on people’s goodwill and contributions. Instead, we chose the commercial road. You buy trees from Better Globe AS and they have an agreement with Better Globe Forestry Ltd. that plants them and takes care of them, until they are sold to the factory 20 years later. BGF then divide the profit. BGF make money and you make money. It is a solid win-win. The fact that it is also good for the planet, people and society is a fantastic bonus.
Although many of us try to choose ecologically, shop eco-labeled and make generally wise and environmentally aware good choices, most of us forget to consider the power of our savings. In many ways, money creates and defines our future, because the companies that receive our savings can use them to develop and sell more products and services that are in line with what consumers demand.
Better Globe Forestry wants to be an ethical, sustainable and long-term alternative to traditional savings, and we have succeeded well with that.
Expected return from each tree
When you buy a tree from BG for 17 €, BGF plants it, takes care of it, fells it and give you a predetermined yield for the trees you bought. In all its simplicity, it works as follows:
- Year 1: You buy the tree for 17 € and we plant it
- Year 1 – 4: The tree grows, there is nothing to harvest and you get no return
- Year 5 – 19: The tree is in full production age and you get € 2.55 per year for 15 years
- Year 20: the tree is felled and sold to the factory and you get 170 €
Summing up the return, it looks as follows:
- Year 1 – 4: 0 € return
- Year 5 – 19: 15 years x 2.55 € = 38.25 €
- Year 20: 170 €
- In total = 208,25 €
In this context, it is important to point out that there are no guarantees. It is an expected return and, like all investments, there are a lot of risks involved. You can read these here. However, we have historically paid out returns to our customers according to the above model every year since 2010, and everything indicates that we will keep these commitments in the future as well.
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 thus twice as large as for a tree, that is, 2 x 208.25 € = 416.50 € over the same 20 years period. The percentage of return, however, is a little lower because the donation package costs 53 €, but considering all the good that the donation package actually contributes to, we hope that you are considering buying anyway.
Our best advice: regular savings
Although it is possible to buy a single tree on a single occasion and then never again, we recommend regular savings in trees. We also reward all customers who regularly save in both donation packages and trees on a yearly basis.
Common questions regarding returns
How do I get my return?
At the end of the year, often at the end of November / December, we pay out the return on your trees to your Better Globe account, which you have access to when you log in with your customer number (AID number). From there you can then choose to reinvest the money in new trees at a discounted price, or withdraw the money to your bank account.
How are the returns from the trees taxed?
The returns (profits) from the trees is taxed according to the rules of the country in which you pay your domicile tax. Remember that you 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 a loan to the company. We repay this loan through repurchase with a predetermined interest rate of 2.55 € per tree from year 5 to year 19, and then make the final repurchase of 170 € year 20.
On the web it says that you need to have an invoice to get the return?
It is not correct, and we apologize for this inaccurate formulation. Only our ambassadors need to have an invoice to receive their commission, as it is "service income" and should be taxed differently than the return taxed as "surplus capital".
Is it guaranteed that I will receive the money?
No, just as with any other investment, there are no guarantees and should the worst possible occur, you can lose your entire stake. However, we work continuously to minimize and eliminate risks. We also believe that for every year that goes by, the risk is reduced because more and more trees are planted.
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.