Q. What is CannaMakeADifference Day?
An online giving event that provides nonprofits the opportunity to gain exposure to -- and start relationships with -- new donors, and for like-minded pro-cannabis people in to come together to raise as much money as possible for nonprofits in their state to break down stigmas and stereotypes about the cannabis community and industry.
Your participation with CannaMakeADifference Day is telling your community, your state legislators, and the federal government that you are able and willing to accept support from the cannabis community.
Q. When is CannaMakeADifference Day?
CannaMakeADifference Day is Tuesday (#GivingTuesday), December 3, 2019 from 12:01am to 11:59pm.
Q. What is DoingGood Foundation?
The DoingGood Foundation is a Colorado-based 501(c)(3) nonprofit organization whose mission is to promote community giving and provide low to no-cost resources to small (under $1MM annual budget) and local (community based) 501(c)(3) nonprofit organizations. Our signature program is our DoingGood Week which is taken from the startup community, which provides low-cost, if not free, business training for small nonprofits. Providing training on topics from accounting to volunteer management, DoingGood Week has provided hundreds of small nonprofits with training and resources designed specifically to meet their needs. The DoingGood Foundation is the nonprofit partner and host for CannaMakeADifference Day.
Q. Why is CannaMakeADifference Day important?
CannaMakeADifference Day promotes Corporate Social Responsibility to cannabis companies as well as provides a way for the entire cannabis community, patients, consumers, employees, companies and owners of cannabis and cannabis-oriented, businesses to come together as a community to elevate the public perception of the cannabis community and cannabis industry.
The timing of CannaMakeADifference Day is not an accident. Well, maybe it was, but right now, the timing could not be more important!
Legislative bills in the House and Senate are being developed and submitted for vote beginning with the Banking Bill currently in the Senate and then in 2020, AN ELECTION YEAR, Taxation and Research Bills will be submitted for vote.
See the following for why nonprofits should be interested in this legislation.
Did you know that currently, if a cannabis company donates to a charity that technically, they are being considered as a money laundering front for an illegal entity? And if that money is submitted to a bank, the nonprofit can have their accounts closed by the banks or feds?
There is an IRS code 280E which, although designed to fight the war on drugs and make it harder for drug dealers and cartels to write off business expenses on their taxes from an illegal activity, LEGAL (state legal) cannabis companies fall under this code and technically are unable to receive a tax-deduction on any business expense including providing a donation to a charitable cause, 501(c)(3) nonprofit.
Most cannabis companies are being taxed by states effectively at 55-70% tax rate. Imagine what they would do for local communities and nonprofits if giving money to 501(c)(3) nonprofits could lower their taxes!
Currently, the scheduling of cannabis as a schedule I narcotic prohibits research of the benefits of the plant. For many nonprofits, which center on disease research or cures, they are unable to support cannabis research and the potential benefits it may or may not have on the diseases for which these nonprofits want a cure or to lessen the effects of the disease.
Also, since universities and colleges are nonprofits as well, they cannot receive contributions from cannabis companies which are very willing and able to provide support for research and testing around disease.
Q. Who is CannaMakeADifference?
CannaMakeADifference is the cannabis industry partner for CannaMakeADifference Day. Their mission is to elevate corporate social responsibility (CSR) in the cannabis industry by providing education, resources and products which make it cost-effective and more efficient to implement corporate social responsibility into their company. CannaMakeADifference also works with local governments who are infusing CSR into their application process for cannabis licensing, to create realistic and implementable applications for CSR within their states and communities. See www.CannaMakeADifference.org for more information.
Q. What is GiveGab?
GiveGab is a nonprofit giving platform that helps nonprofits to raise money, engage donors and manage volunteers quickly and efficiently. GiveGab offers a full portfolio of simple and easy to use products that allows organizations to function in a more streamlined manner.
Q. Who can donate?
Anyone may donate. Donations through CannaMakeADifference Day online portal to a charitable nonprofit organizations are tax-deductible and cannot be refunded.
If you are an owner of a cannabis company which touches the flower, you should consult your accountant or other tax professional.
Q. What is a "unique donor"?
For the purposes of awarding prizes, a unique donor is one individual or corporation/business. Multiple donations from one donor to the same nonprofit will count as one donor. Organizations cannot donate to themselves.
Q. What forms of donations are accepted?
MasterCard, Visa, Discover and American Express donations received through the website on the giving day will be matched from the bonus pool on a prorated basis. No donations via check, cash or stock will be accepted.
Q. Is my donation tax-deductible?
All nonprofits for this giving day are 501(c)(3) nonprofit organizations and therefore contributions are tax-deductible. However, with the possibility of individuals and companies being connected to the growing and distribution of cannabis, you should consult a tax professional to advise you on the tax deductibility of the donation.
Q. Will I receive a receipt for tax purposes?
Yes. You will automatically receive an emailed receipt acknowledging your gift.
Q. Is there a minimum gift?
There is a $10 minimum donation.
Q. May I pay a pledge with my gift?
Since Giving Day is designed to generate new support, we are unable to accept gifts to pay off existing pledges.
Q. May I designate how a nonprofit uses my gift?
All donations made during the Giving Day are considered unrestricted gifts to the nonprofit, other than they must be used for the benefit of [community nonprofits]. However, you may express your desire that your gift be used for a specific program or project (in the notes field of the giving form).
Q. How much of the donation will go to the nonprofit?
All donations will be paid to the chosen charity net of credit card transaction, a portion of the processing fees paid to the giving platform and a small administrative fee to the hosting nonprofit - a total of near 7%. Varies due to credit card fee structure. Any donations processed outside of the Giving Day Period, through GiveGab.com, or subsequent recurring donations are subject to transaction fees outlined on the GiveGab.com pricing page: info.givegab.com/pricing.
Q.May I use my donation to buy event tickets, museum memberships, or other things that provide me a benefit?
No, donations may not be used to pay for anything that might be perceived as a material benefit to the donor, advisor or other disqualified person - including dinner tickets, membership fees, golf fees, admission tickets or other gifts.
Q. What if I can't find my favorite nonprofit on the website?
If you can't find them on the site, they may not be participating in the event this year. After the event, please encourage the nonprofit to contact us so we can be sure they are ready for next year.
**Please understand that challenges exist for nonprofits to participate in anything having to do with cannabis, so if an organization is participating, it says they are willing and able to accept support which is a very important aspect to this giving campaign. So please support those on this platform if at all possible.
Q. Can I just give to a cause in my state?
If you cannot find a nonprofit specifically to donate to, we have created a way in which you can donate to a specific cause in your state of choice. All donations taken for a cause will be issued to a partnering Community Foundation in your state of choice and 10 month grants to local nonprofits will be granted out from the foundation. Results of these grants will be reported prior to CannaMakeADifference Day 2020.
Q. Who is GiveGab?
GiveGab is an online giving platform that helps nonprofits raise money, engage donors, and manage volunteers quickly and efficiently. GiveGab offers a full portfolio of simple and easy-to-use products that allow organizations to function in a more streamlined manner. Your profile on GiveGab is available 365 days a year for fundraising and volunteer management should you choose to use it beyond the giving day.
Q. Do I need to create an account with GiveGab?
No. You do not need to create an account to make a donation. The benefits of creating an account include having your tax receipts collected in one location, being able to track your donations, follow the charities you support, and engage in future volunteering and donations. Your tax receipt is emailed immediately upon processing your donation. To claim a donation as a deduction on U.S. taxes, you should retain the donation receipt as an official record.
Q. What organizations are eligible for the Giving Day?
Organizations must have a current 501(c)(3) status and providing direct services in any legalized state for cannabis whether medically or recreationally legal.
Q. When does nonprofit registration close?
Nonprofit registration closes on November 15, 2019.
Q. How will donations be distributed?
Each donation made to a participating nonprofit will be disbursed directly from GiveGab via direct deposit within 5 - 7 business days.
Q. Who will receive my contact information?
The organization(s) you choose to support will have access to your name and email address. This information is used solely to send thank you messages, provide the option to receive future notifications, and to notify you of future activities.
Q. Can I make donations via a mobile device?
Yes, simply visit, www.cannamakeadifferenceday.org while donations are open!
Q. What is state charitable solicitation registration?
Nonprofits are held to a high standard of government regulation and public scrutiny. And that is with good reason! Eligible 501(c)(3) nonprofits are exempt from federal corporate taxes and have access to public funding. These benefits are not typically available to for-profit businesses, so laws are in place to protect the public and ensure nonprofits do not abuse their financial advantages. The IRS and states all have requirements for nonprofits.
Q. Why is state charitable solicitation registration compliance important?
While 501(c)(3) nonprofits receive key financial benefits, the penalties for noncompliance can be serious. The IRS can revoke a nonprofit’s tax exemption and impose fines that can accrue daily. The states can administratively dissolve a nonprofit corporation and levy steep financial penalties. Perhaps worst of all, an organization can lose out on a grant or large donation because it has not kept itself in good standing.
Taking a proactive approach to compliance helps ensure the sustained success of the organization. The cost of staying compliant is small in comparison to the much larger costs of noncompliance. The saying, “an ounce of prevention is worth a pound of cure” could not be more true in this context.
Q. What are the key aspects of state charitable solicitation registration compliance?
The IRS provides tax exemptions to eligible nonprofits under IRC 501©. Public charities and private foundations receive 501(c)(3) tax exemption. The IRS scrutinizes organizations when they apply for 501(c)(3) but also ensures that those organizations meet the ongoing obligations to remain eligible. Nonprofits must file a 990 tax form each year with the IRS to disclose their financial data for the year.
Each state has their own set of requirements. Nonprofits are typically incorporated in a given state as a nonprofit corporation. The state in which the nonprofit has incorporated will impose requirements on the nonprofit, and those responsibilities typically span across multiple state agencies. Usually nonprofits must submit an annual filing to the corporations division of the secretary of state, maintain its license to fundraise (charitable solicitation registration), file for a state business license, and maintain state-level tax exemption with the revenue department. As nonprofits expand outside of the state or operate nationwide, they must comply with the same items in each other state as well.
In addition to IRS and state filing requirements, nonprofits must keep adequate records. Keeping accurate and complete records is critical in the event that an organization is audited. It is also common that board members or donors request information from the organization. Finally, records are necessary for submitting applications and renewal filings with various government agencies.
Q. When I check the box on GiveGab to declare state charitable solicitation registration compliance, what am I attesting to?
When you check the box you are attesting (defined as "declaring that something exists or is the case") that your organization is compliant with applicable state fundraising requirements in the states in which you may solicit donors using the GiveGab platform.
Q. Do you have additional resources to reference about state charitable solicitation registration?
Yes! Here are a few more resources from Harbor Compliance to help you:
- Guide and Overview of Many Nonprofit State by State Compliance Requirements
- Guide and Overview Specific to Fundraising Compliance
- National Council of Nonprofits and Harbor Compliance have partnered to create a white paper explaining the state charitable solicitation registration requirements.
- A Quick Summary of Charitable Solicitation in Graphic Form
- Executive Brief: Charitable Solicitation Registration (great for driving awareness and support with leadership and the board)
- State by State Links to the State Organizations that Regulate Charities, Solicitation, and Registrations