Learn more about how the charity is supported

What are PURE’s expenses?

PURE’s expenses relating to fundraising and administration are capped by the Trustees at a maximum of 28.5% (including VAT) of the gross value of donations. However, it should be emphasised that this is a maximum expense level which reflects the high transactional cost of small donations.

An initial goal was to reduce expenses to a level below that of the worth of Gift Aid (22%). This has already been achieved for donations via the website. Over the longer term, the Trustees' goal is to reduce PURE’s expense levels by at least half as and when donations are sufficient for economies of scale to work. From launch to April 30, 2007, PURE’s expense ratio was approximately 14% (unaudited).

To maintain PURE’s transparency, the Trustees will report expense ratios on the web-site on an ongoing basis.

How much of my money is used to buy carbon credits?

Once a donation is received by PURE, it guarantees to purchase the stated amount of carbon credits. After the carbon credits are purchased, remaining funds are used to meet the charity’s expenses within the limits stated.

Are any of PURE’s Trustees paid?

In accord with UK law, no Trustee receives payment for acting as a trustee, though the charity may meet their out-of-pocket expenses for performing their duties. The charity also covers miscellaneous trustee expenses such as liability insurance and the cost of any legal advice necessary. All of these costs are covered within the expenses listed above and will be disclosed in the Report and Accounts.

What is PURE’s relationship with Climate Exchange (Europe) Ltd - (CEE)?

CEE provides administrative and fund-raising services to PURE, meeting the requirements of the Charitable Institutions (Fund Raising) Regulations 1994. Under the terms of CEE’s contract with PURE, it is entitled to receive fees not exceeding the maximums stated in return for providing administrative and fund-raising services.

PURE’s contract with CEE conforms to the standards of the Institute of Professional Fundraisers. CEE is a member of the Institute.

Why is PURE working with Climate Exchange (Europe) Ltd - (CEE)?

CEE is a subsidiary of Climate Exchange plc which designed, built and operates the world’s leading markets for trading carbon credits; the European Climate Exchange and the Chicago Climate Exchange. Climate Exchange plc has unrivalled knowledge of how to create clear, transparent and regulated markets.

How does PURE assure its independence?

To assure and maintain public performance standards, PURE has been established as an independent registered charity and its policies are determined by highly respected trustees.

Charity Law means that all decisions related to the policies of the charity must be made by PURE’s Trustees. CEE cannot act except on their authorisation.

The policies governing PURE’s procurement of carbon credits is strictly dictated by the Trustees. The Trustees will secure carbon credits on the most competitive market terms taking account of important considerations such as certainty of delivery and other matters of prudence. Prices will be determined by reference to an exchange or robust pricing index. In the absence of an exchange-based or index-based price, the Trustees will use competitive tendering. Tendering ensures independence and details of the carbon procured and/or any projects will be published frequently.

What are the financial benefits to PURE of working with Climate Exchange (Europe) Ltd?

Under its contract with PURE, CEE has assumed the financial risks associated with running PURE. CEE has also provided all the start-up costs. Any fees paid to CEE will not increase expenses above those maximums stated.

CEE only receives fees for its services from donations received by the charity within the stated limits. This guarantees that the percentage of donations stated above is used to purchase carbon credits before fees are paid to CEE. It also insulates PURE’s donors from the possibility that their donations will be used to meet any administrative or fund-raising cost overruns.

CEE’s contract with PURE does enables CEE to earn profits if it is able to provide PURE with administrative services below targeted costs and attract more than the targeted amount of donors. This performance based criteria optimises the financial benefits to the charity (realised as low expenses) and ensures that the charity can never incur financial risk, while providing reasonable reward for the fundraising and administration services provided by CEE.

CEE is contractually committed to provide PURE with a full account of all revenues earned by CEE in connection with provision of services to PURE. These figures will serve as the basis of any future adjustment in the level of fees to be paid to CEE.

PURE’s contract with CEE states that it is the aspiration of both parties to significantly reduce the percentage of gross donations that are spent on the provision of the services when there are sufficient economies of scale to do so and, hence, to increase the percentage of donations to PURE that will be used to purchase carbon credits.

Please note that Climate Exchange plc does not own any carbon offset projects and no carbon credits will be bought from Climate Exchange companies by PURE.