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Royal Oak Approves Medical Cannabis Organization's Non-Profit Status


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Hi Hayduke,

 

I wasn't trying to say that CPU was or wasn't a PAC.  It's what I know what ( c )4's can be.  CPU tends to be a more secretive (Public Description) or quiet (Your Description) group so not many know about what CPU does or doesn't do compared to other ( c )4's that I have personally worked with in other realms outside of the Cannabis Industry.  Most ( c )4's that I have been involved with tend to let the Public or their constituents know what they are working on. It's great to finally know a little bit on what CPU is working on....that was actually a first that I heard on what CPU was involved with in relation to the Walsh Task Force or cleaning up bad language in bills. Nice to know we have a group that is doing that and now I can bring that tidbit of information back to the Public at our meetings so they know to support your group.

 

Only 501( c )3's, ( c )19's and one other kind are allowed to get gaming permits.  The gaming laws state very clearly that no monies raised via gaming can be used for lobbying or political purposes and can only be used for General Operations. Gaming also will not permit any funds raised this way to be donated to another nonprofit.

 

I hope that helps answer any questions.  

 

Mish

_______________

 
Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376

really?  Does Karl Rove do that with his 501c4?

 

Sounds rather simplistic to me, Mish.

 

Perhaps we do different things, I dunno...

 

Great to see you are becoming more public yourself.  Is that a new strategy for you here at 3MA?

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Hi Hayduke,

 

I wasn't trying to say that CPU was or wasn't a PAC.  It's what I know what ( c )4's can be.  CPU tends to be a more secretive (Public Description) or quiet (Your Description) group so not many know about what CPU does or doesn't do compared to other ( c )4's that I have personally worked with in other realms outside of the Cannabis Industry.  Most ( c )4's that I have been involved with tend to let the Public or their constituents know what they are working on. It's great to finally know a little bit on what CPU is working on....that was actually a first that I heard on what CPU was involved with in relation to the Walsh Task Force or cleaning up bad language in bills. Nice to know we have a group that is doing that and now I can bring that tidbit of information back to the Public at our meetings so they know to support your group.

 

Only 501( c )3's, ( c )19's and one other kind are allowed to get gaming permits.  The gaming laws state very clearly that no monies raised via gaming can be used for lobbying or political purposes and can only be used for General Operations. Gaming also will not permit any funds raised this way to be donated to another nonprofit.

 

I hope that helps answer any questions.  

 

Mish

_______________

 
Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376

oh gracious, so you mean I can't get a bingo license?

 

As for CPU and our strategy, well, I can only say.... ahhh.... nothing.... 

 

Skull and Bones

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Celliach - Most people don't understand the difference between a state nonprofit Corporation and a Federal Tax-Exempt Nonprofit.  We deal with this on a constant basis in the Cannabis community.  All donations to our organization are actually tax-deductible compared to a state nonprofit.  No donations that are submitted to a state nonprofit are tax deductible thru the IRS.  I have personally worked for about half a dozen nonprofits outside of the Cannabis community and each one had a 501( c ) designation.  Also a Federal Nonprofit has to be transparent in relation to their finances and if a Federal Nonprofit ever goes under it must transfer its entity as a whole to another Federal Nonprofit.  A state nonprofit if it folds the money that is left stays in private hands and most times do not provide financial status to its members.  

 

In our case the first step for a organization is to setup a state nonprofit and then after a little bit of time one can go through the process of going for a Federal Nonprofit status.  Via the Federal process the organization is interviewed by the IRS both on the phone as well as in application process. In our case they actually sent Undercover IRS Agents to our meeting to make sure we didn't dispense in any manner. There are some very strict regulations for getting a Cannabis Public Charity Status signified as a 501( c )3.  Two things we are unable to do is teach about cultivation of cannabis and provide safe access.  It was a change to our organization that did happen as we used to teach about cultivation but we never provided safe access.  We decided early on that teaching cultivation really didn't hurt our growth as there were enough Hydro stores, books, web apps, and magazines around to provide that specific education. Plus when we did teach cultivation no one really listened even when we brought in experts because as human nature goes when you walk into a Hydro Store any advice that you previously had is thrown out the window as the store provides you with a different solution.

 

A state nonprofit cannot get a gaming permit in any manner unless they have the 501( c ) status. We also have approval from the AG's office to solicit the public for donations which is another area that state nonprofits cannot get.  Once a organization has all of these documents and a few others the gaming application can then begin. To get a gaming permit for more than just raffles a city has to recognize a Federal Nonprofit similar to that of a Church or a School or the City Animal Shelter and add it to their City Resolutions for recognition. Again only a Federal Nonprofit can do this.  Since we do not dispense this is a avenue of fundraising for the organization and specifically to us it is one of the many Outreach Programs that we have developed. Print, Guides, brochures, etc are all costly and require consistent fundraising to continue our outreach. Michigan Compassion is on the cusp of bringing on full-time staff and are working diligently to make this happen in a very short period of time. And yes we are looking to hire individuals from the Cannabis community to fill those roles as many have been unemployed or are disabled to work.

 

There are many 501( c )4's that are Cannabis Political Organizations....the last I heard was 54 that hold a 501( c )4.  There are only 4 that hold a 501( c )3 and only one of the 4 are Public Charities meaning Michigan Compassion.  The other 3 are Foundations.

 

Lastly, Dickinson County Compassion Club is not listed in Guidestar nor on the IRS Public Charity database.  Our link on Guidestar is as follows:

http://www.guidestar.org/organizations/45-2800939/drccc.aspx

 

In relation to the difference between the 2 types see below:

http://www.irs.gov/Charities-&-Non-Profits/Applying-for-Exemption---Difference-Between-Nonprofit-and-Tax-Exempt-Status

 

Thanks to our Secretary we have achieved all of these things quickly as all of our paperwork is consistent and in line with what we do.  We have achieved a ton for the Cannabis Community as a whole because of a solid Team at Michigan Compassion. 

 

Please don't take any of the above as anything but education.  Most people don't know the difference and all of the current compassion clubs in existence in Michigan are state nonprofit corporations. We hope to see more state nonprofit corporations go for the Tax Exempt status although that means giving up a few things until Federal law changes. The path we chose has been a long, hard road in every aspect as we are truly grass roots, on the ground organization. Our meetings do not allow any transfers(anymore), no smoking, and families are welcome. Food is always provided with water or pop.

 

Wild Bill - We may have a hall already picked out in Royal Oak.  At this time we are working on scheduling and making it consistent for the next 12 months.

 

Hayduke - CPU is a 501( c )4 which tends to be Political Action Committees (PAC) or Lobbyist groups. 501( c )3's tend to be more Community involved Public Charities or Foundations.

 

 

 I would just say there is quite a bit of wrong or bad information in that post concerning donations, AG public fundraising and such.  Just simply incorrect.  Public fundraising and "gaming licenses" are two very different items you have bunched together for one.  DCCC received a MICS from the Attorney General to solicit donations for the "Tools for Schools" program. It amounted to $4,000 and left us short of further extensive filing for not surpassing $8,000 in donations from the general public.

 

I think you are blurring the lines on the facts there.  "Gaming" simply means bingo nights and raffles 99% of the time.  All cool and fine and dandy.  But one may receive donations from the public without being a federal 501©.  No problems there. Exemption doesn't preclude public donations.

 

 And a 501©4 is NOT a PAC. We are a social welfare corporation. A 501© 4 may setup a separate segregated fund designated as a 527 group if desired.

 

 I am also familiar with a couple people that have visited DCCC from the Downriver compassion club. They said you supplied their members effectively at that time. Glad to hear things have changed and you no longer follow th epath that many businesses seem to have.  Cleaned up your act so to speak. I had not heard of your new venture "Michigan compassion" and such. 

 

 Kudos and good luck.

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 I would just say there is quite a bit of wrong or bad information in that post concerning donations, AG public fundraising and such.  Just simply incorrect.  Public fundraising and "gaming licenses" are two very different items you have bunched together for one.  DCCC received a MICS from the Attorney General to solicit donations for the "Tools for Schools" program. It amounted to $4,000 and left us short of further extensive filing for not surpassing $8,000 in donations from the general public.

 

I think you are blurring the lines on the facts there.  "Gaming" simply means bingo nights and raffles 99% of the time.  All cool and fine and dandy.  But one may receive donations from the public without being a federal 501©.  No problems there. Exemption doesn't preclude public donations.

 

 And a 501©4 is NOT a PAC. We are a social welfare corporation. A 501© 4 may setup a separate segregated fund designated as a 527 group if desired.

 

 I am also familiar with a couple people that have visited DCCC from the Downriver compassion club. They said you supplied their members effectively at that time. Glad to hear things have changed and you no longer follow th epath that many businesses seem to have.  Cleaned up your act so to speak. I had not heard of your new venture "Michigan compassion" and such. 

 

 Kudos and good luck.

 

Hi Malamute,

 

Let's set the story straight DRCCC / Michigan Compassion has never dispensed in any manner or form. The group you have DRCCC mixed up with is Downriver Wellness Group which is now known as Michigan Wellness Group completely separate from what we do and have done - might want to check the name of the organization before putting out "bad info."  Downriver Wellness Group aka Michigan Wellness Group has been dispensing for 3 years and has been raided several times as well.  What location do you speak of....DRCCC has never had a location besides a meeting place at the Southgate Civic Center across from the Southgate Police Station with kids ice skating (not really a ideal location to supposedly dispense - especially with the Public invited bringing kids from time to time). I think your information has us confused with another group.

 

In the case of CPU being a PAC or not I stated that very clearly in my followup response saying that ( c )4's CAN BE PAC's or something else. It's understandable you didn't read that portion.

 

I am not exactly sure what you are talking about in relation to solicit donations via "Tools for Schools" program as we were not part of that in any manner.  We never participated in such a program so maybe a explanation is due on the organization you have us mixed up with. Our organization is listed as a Public Charitable Trust at the Office of the AG for Public Solicitation. The organization you have listed is definitely not us.

 

In relation to Gaming it is simply untrue on what gaming permits for a 501( c )3 and its not limited to Bingos or Raffles. It maybe helpful for you to take the Nonprofit class at Lawrence Tech so that you have a better idea on all the different avenues one can fundraise via gaming. Gaming is a way for fundraising to our organization that wasn't available before the status. In my explanation I was providing different ways a Tax Exempt Nonprofit can fundraise not saying that Public Donations were to be intermingled with Gaming as they are both different types of fundraising that we can do now. Public Soliciting is one avenue, while Gaming is another....both quite separate and both requiring strict accounting practices.

 

By the way our "act" has always been "Pure Education" from the beginning.  I guess after 215 Public Meetings some have a hard time understanding how pure it is till they come to a meeting.  So for all those non-believers come on out to a meeting and see for yourself on Who we are, What we do, and How we provide that needed education.

 

Mish

 

-----------------------

Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376
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I didn't read every word (Mr Amish) but what is your purpose if not for politics?  That is the battlefront (politics). 

 

Also are you saying you are Amish?

 

Hi SFC,

 

Our purpose is to educate...we delved into politics and figured it we wasn't meant for us just yet. Politics may be the battlefront for yourself but it is not for our organization. I would suggest finding a organization that fits your political needs. There are quite a few out there with ASA, MINORML, MPP, Safer, DPA, NCIA, NPRA, CPU, etc. If finding one that aligns with your political stance I would suggest starting one that falls into that "sweet spot." Michigan Compassion's focus is to Educate the Public on the medical benefits of Cannabis and how to stay safe within the current laws as listed. We know that this is needed as every single meeting we have had averages between 70 - 90 people. Michigan Compassion believes that educating the public will make a difference at the polls when it comes time.  Education brings about better choices.

 

Amish is my first name and no that does not mean I am "Amish."

 

Thanks.

 

Mish

 

------------------------------

 

Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376
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really?  Does Karl Rove do that with his 501c4?

 

Sounds rather simplistic to me, Mish.

 

Perhaps we do different things, I dunno...

 

Great to see you are becoming more public yourself.  Is that a new strategy for you here at 3MA?

 

Hi Hayduke,

 

It is possible even for Karl Rove. Could be simplistic if thats how you want to portray it. We definitely do different things no doubt CPU (Quiet) vs. Michigan Compassion (Very Public).  

 

I finally have time to become a bit more involved and rather than see the 3MA speak for Michigan Compassion it would be better if different members of Michigan Compassion inform the 3MA of what we are doing. I spend more time on the ground on the Development side getting Programs launched and Volunteer Team Development. It's also nice to be finally Full Time with Michigan Compassion and we are realizing how much more we are accomplishing with that focus and steadiness.

 

I hope to someday see Michigan Compassion possibly partner with CPU on a event in the future.

 

Mish

 

------------------------------

Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376
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Hi Malamute,

 

Let's set the story straight DRCCC / Michigan Compassion has never dispensed in any manner or form. The group you have DRCCC mixed up with is Downriver Wellness Group which is now known as Michigan Wellness Group completely separate from what we do and have done - might want to check the name of the organization before putting out "bad info."  Downriver Wellness Group aka Michigan Wellness Group has been dispensing for 3 years and has been raided several times as well.  What location do you speak of....DRCCC has never had a location besides a meeting place at the Southgate Civic Center across from the Southgate Police Station with kids ice skating (not really a ideal location to supposedly dispense - especially with the Public invited bringing kids from time to time). I think your information has us confused with another group.

 

In the case of CPU being a PAC or not I stated that very clearly in my followup response saying that ( c )4's CAN BE PAC's or something else. It's understandable you didn't read that portion.

 

I am not exactly sure what you are talking about in relation to solicit donations via "Tools for Schools" program as we were not part of that in any manner.  We never participated in such a program so maybe a explanation is due on the organization you have us mixed up with. Our organization is listed as a Public Charitable Trust at the Office of the AG for Public Solicitation. The organization you have listed is definitely not us.

 

In relation to Gaming it is simply untrue on what gaming permits for a 501( c )3 and its not limited to Bingos or Raffles. It maybe helpful for you to take the Nonprofit class at Lawrence Tech so that you have a better idea on all the different avenues one can fundraise via gaming. Gaming is a way for fundraising to our organization that wasn't available before the status. In my explanation I was providing different ways a Tax Exempt Nonprofit can fundraise not saying that Public Donations were to be intermingled with Gaming as they are both different types of fundraising that we can do now. Public Soliciting is one avenue, while Gaming is another....both quite separate and both requiring strict accounting practices.

 

By the way our "act" has always been "Pure Education" from the beginning.  I guess after 215 Public Meetings some have a hard time understanding how pure it is till they come to a meeting.  So for all those non-believers come on out to a meeting and see for yourself on Who we are, What we do, and How we provide that needed education.

 

Mish

 

-----------------------

Amish Parikh - "Mish"
 
Michigan Compassion
Director of Development
 
"We MUST Increase Awareness to Increase Acceptance."
CFC Code: 90376

 

 

 I apologize if I had the wrong person or group here.  The member of Downriver said it was run by Heidi.  Who knows.  But weren't you a dispensary interest as well Amish? As I recall,... you were highly involved in some fashion?  Again please correct me. This is why I said i was glad to see your group on a good path. But , it is not relevant anymore and I may be incorrect or have the wrong people as you said.

 

 Anyhow,... since you were discussing DCCC in this thread, and saying you had a member that comes up here every few months, I assumed you knew what DCCC was. (Dickinson County Compassion Club).

 

 DCCC performed the "Tools for Schools" program with a Michigan Charitable Solicitation License(MICS) from the AG and did not need to be a 501©3 to receive public donations as you said in your post. I was merely pointing out a flaw, or accidental misinformation.  Filing is rather simple to do. Merely file a couple pages with the AG for free. 501© status may enhance an application, but has no determining factor within the Charitable Organizations and Solicitations Act.

 

We also have approval from the AG's office to solicit the public for donations which is another area that state nonprofits cannot get.

 

 

 Also, it is important to note that a ©4 is not a PAC. A ©4 can, as I said, setup a "Separate Segregated Fund" that goes into a 527 group, essentially a different organization. This is not restricted to ©4's.

 

Some of a ©4's dues are tax deductible.  Another misnomer in your statement. A notice of a percentage of dues used for lobbying and political campaign activities is required, as they are not deductible.

 

 

 Then as far as being apprehensive about us saying it is about bingo and raffles,... I don't understand why you are. Bingo and raffles are perfectly wonderful ways to raise money for charitable and educational causes.

 

 But for goodness sakes,... the Act that allows this, which you are or will be operating under, is called the "Bingo Act".  Heh. It's all good.  Let's look at what that allows:

 

(n) "Licensed gaming event" means a large bingo, small bingo, special bingo, millionaire party, large raffle, small raffle, annual charity game ticket, special charity game ticket, or numeral game licensed under the act.

 

 For those that don't know, a "millionaire party" merely means you can use fake chips and have blackjack, poker, roulette and craps for a charity event. Totally cool. But otherwise, it's about bingo and raffles in the vast majority sense. Don't be ashamed or feel less because that's what it is about.  As far as I am concerned, fun way to earn money for a charity.

 

And yes, I would recommend a competent accountant when operating any corporation.  I was very happy when we finally found a decent one. A bad apple can really slow ya down.

 

 And as far as saying I should go to junior college,... I went to school for accounting. In doing so, I realized,... accounting was the LAST thing I ever wanted to do with my life.... Hahahahaha. ;-)

 

 Again, glad to hear that MICompassion is sustaining you and your family and wish all your educational ventures to be just and fruitful.

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