Why Cannot Cannabis Companies Donate Money to Charities?

Why Cannot Cannabis Companies Donate Money to Charities?

For most businesses, donating money to various charities and non-profit organizations is a standard practice. But when it comes to the cannabis-related companies, participating in the charitable activities appears to be a bit more difficult that for any other businesses in the U.S.

Charities do not want cannabis-related money

One of the biggest problems is that while marijuana legalization movement keeps spreading across the country, there are a lot of people who still consider cannabis a dangerous and illegal substance. Therefore, they refuse to accept any donations coming from weed companies.

Some charities, however, have better reason for not cooperating with cannabis-related businesses. First, the plant remains a Schedule I substance and is still illegal on the federal level, and many charitable organizations receive federal funding and they do not want to lose it. Secondly, there are non-profits whose goals do not allow them to get involved with any marijuana-related companies. And thirdly, there are still a lot of banking issues in the cannabis industry, and unfortunately, not all non-profit organizations are willing and ready to accept large donations in cash.

Marijuana companies donate money for the right reasons

While it is pretty difficult for cannabis entrepreneurs to find a charitable project they can donate money to, it is even harder for them to explain to people that they actually do it for the right reasons.

While there are a lot of businesses that give money to charities in order to write off these donations on their tax filings, this solution is not accessible for the cannabis-related businesses. As Shannon Brooks, director of marketing and co-owner of the Lightshade shop chain, said to The Cannabist, “those giving back from cannabis organizations really are doing it for the right reasons.”

The other thing people should understand about marijuana is that it can be a source of so much needed funds for the projects that really matter to the community: from building new public spaces to giving more scholarships to talented students to funding new research and more.

In Colorado, for example, two marijuana-related companies—O.penVape and Colorado Harvest Company—became the headline sponsors for the Levitt Pavilion Denver project. They donated $250,000 to the construction of an amphitheater in one of Denver’s parks.

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