In a Manner of Speaking

How to Ask for Cannabis Dollars

By Amy Marie Orozco

The legal and compliant cannabis industry’s evolution has benefited the nonprofit sector in a big financial way. In addition to making the world a better place, many businesses find donations—money, goods, or time—a means to building relations and sowing seeds in the community. set-forth standards that must be met and implemented for such a donation. Examples include donations can be only received from a licensed and legal cannabis company and donations will be received and acknowledged in accordance with the organization’s Receiving Policy.

“It goes beyond the Executive Director or the Development Department greenlighting a cannabis donation, because without proper documentation the organization may be forced to either decline or return the donation,” advises Tina.

While cannabis companies are eager to support local charities and local charities are excited about this new funding source, it’s important to ensure all the kinks are worked out before, advises Tina Fanucchi-Frontado, whose career in the philanthropic world spans more than 30 years. She is the principal of TLF Consulting, helping guide corporations in their community-relations through strategic corporate giving programs and nonprofit commitments.

Kinks? With legal cannabis still controversial, treating cannabis support like non-cannabis support can result in a waste of time and disappointment for the giver and intended recipient alike. It’s important that everyone — the cannabis company and the charity’s Board of Directors and staff—are on the same page about what a donation entails.

When filling out that grant application or submitting a proposal for dollars, consider including a document signed by the nonprofit’s board of directors indicating approval of receiving funds from the cannabis industry. Along with making crystal clear that an organization’s Board of Directors and staff unanimously accept donations from licensed/legal cannabis businesses, some nonprofits have woven other points into their acceptance policies, such as:

• Donor acknowledgment and recognition: Cannabis dollar donations will be recognized and honored in the same manner of all other donor acknowledgments, such as media releases, signage, naming, and other avenues.

• For what purpose the donation will be used: Funds received are used to fulfill the [some specifics of the organization’s mission].

• Particulars and limitations: Confirming cannabis donations are equal to non-cannabis donations and specifying details such as public acknowledgment of funds will not include words or artwork perpetuating negative stereotypes or misinformation.

The first step is to present the idea to the Board of Directors for approval and documentation. In many cases, the Executive Committee will draft guidelines and develop giving guidelines for such donations. These guidelines Lastly, when asking for cannabis dollar donations, “Don’t ask for anonymous donations,” Tina emphasizes, if you’re not willing to acknowledge the donation, then you have no right asking for the donation.