A Live Green, Live SmartTM Briefing 
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One interesting industry that has grown out of the green revolution is the "carbon offset" or "carbon neutral" industry. All sorts of people - from your neighbor to Al Gore - are putting money into this new industry.
We know now that humans play a major role in amplifying the threat of global warming by producing and releasing the greenhouse gas carbon dioxide into the atmosphere. Carbon dioxide gas is a byproduct of modern life: when we drive, turn on the light, build a home, even when we eat dinner, each of us is individually responsible for putting carbon dioxide into the air.
A carbon neutral organization offers you the chance to zero-out those emissions by participating in projects to reduce the atmospheric concentration of carbon dioxide: reforestation, renewable energy, energy efficiency, or education. These companies assign a dollar value to the carbon dioxide you produce, and accept cash donations equal to your monthly, yearly, or one-time carbon output. They take that donation and use it to fund one or a number of projects. The idea is that the amount of carbon you've put in the air is neutralized by these projects, which you've helped to fund.
Like any industry, new or established, carbon neutral organizations offer both the potential for change and the potential for exploitation. If you intend to donate cash or use a credit card to any organization providing a carbon offset or carbon neutrality, protect yourself and your donation. The following guidelines will help you gather the needed information before you choose a carbon offset organization. The following guidelines are only suggestions, and are not intended to provide complete protection or a guarantee your donation will reach the intended project.
- Not all organizations on the Internet are legitimate, even if they look that way. Check to see whether the organization is recognized by other legitimate groups - and, if the organization is a non-profit, check with the state's Charities Review Council to see whether they report their revenue and expenditures.
- Does the organization provide legal statements outlining the status of their incorporation? Remember that there is a difference between non-profit and not-for-profit. If you give to a not-for-profit organization, that donation is not tax-deductible. A non-profit charitable organization - designated a 501(c)(3) by the United States Internal Revenue Service - is stringently regulated. Non-profits have different designations outside the US, so if you give to a non-US company, make sure you understand what kind of company it is. There's nothing wrong with buying carbon credits or other products sold by a reputable for-profit company - but be sure they give you enough information to understand their agenda.
- What percent of your donation is used for projects that actually offset carbon, and what percent is spent on operational overhead (employees, fundraising, offices)? If less than 75% is directly spent on projects, you may want to rethink your donation.
- Know what projects your donation and other donations actually fund. Request in-depth information about the organization's projects and the extent of their involvement in them. Don't give to anyone who promises only "future projects."
- Does the organization include projects that are educational and beneficial to the community for the long-term, or do they just sell this year's carbon credit?
- If they are using a "carbon calculator," what are the formulas and methodology behind their calculation of your use and your offset?
- Can you readily find information on their president, CEO, executive director, etc? Their staff? Is the organization volunteer-based?
- Do they offer a physical address, email contacts, and phone numbers? How would you get in touch with them?
- How do they protect your name and financial information?
- If you're donating electronically, do they use a secure and trusted payment system?
- If your donation is going to be tax deductible, check the organization's recognition by the IRS at www.irs.gov -- and be sure you receive a physical receipt for your donation.
If the organization you're considering is less than forthcoming, forget them. Non-profits are required by law to present their tax and financial information for public inspection on request. If the company doesn't seem right, move on. There are other groups out there. If you're curious to learn more about a non-profit carbon offset organization (or any non-profit, for that matter), there are places out there to find information on them, such as GuideStar (www.guidestar.org).
Carbon neutrality is essentially a stopgap for the pollution in our lives until we are able to make sufficient change on our own behalf. But there are other things we can change in our lives to reduce our impacts, and we should do our utmost to make those changes.