The Festival of Trees raises funds for charity by auctioning decorated Christmas trees and other holiday items. Local businesses and individuals sponsor or donate trees, which are often themed and creatively designed. Attendees can bid on these creations during the event, with all proceeds directed toward specific charities, often supporting children's hospitals or community programs. Additionally, some events include holiday markets, entertainment, and family-friendly activities, further enhancing participation and fundraising efforts. The festival not only raises funds but also builds community spirit and awareness for charitable causes.