| February 8, 2017
January 12, 2017; Denver Post
Last November, seven more states legalized marijuana, increasing the total number of states where the use of marijuana in some capacity (recreational or medical) is not illegal to twenty-eight. Overall, the legal marijuana industry could gross as much as $20 billion in revenue by 2020. Many of the new businesses making up the legal marijuana industry are looking to give back to their communities, but many nonprofits are hesitant to accept their donations.
Tim Cullen, the CEO of the Colorado Harvest Company, was surprised by the challenges he encountered when he decided to donate some of his business’ earnings. “I have been shocked at how few places will take our money,” he said. Colorado Harvest Company is a chain of shops selling marijuana products. Cullen is also a shareholder of O.penVape, a company producing vaping pens.
Although Colorado legalized recreational marijuana over five years ago, many nonprofits continue to refuse gifts from the industry. Luckily, Cullen felt strongly about the need to give back. “I think philanthropy is what responsible businesses do. It’s not a choice so much as the next logical step,” he said. Eventually, he and his business partners at O.penVape made a donation of $250,000 to Levitt Pavilion Denver to partially fund a new amphitheater in Ruby Hill Park in the southwest part of the city. Once it is finished, the nearly $5 million Levitt Pavilion will host many events, including fifty free concerts each summer.
Accepting this gift was not a simple decision for Chris Zacher, the local executive director. Since the pavilion will be located in a city park, he first reached out to the city of Denver. City officials did not approve or object to the potential partnership but encouraged Levitt to reach its own conclusion, according to city licensing spokesman Dan Rowland. Zacher’s second phone call was to the organization’s national board. “We took it to Levitt, they took it to the board, and as long as it is legal in their state and not promoting the sex trade or tobacco, they were fine with it,” he said.
Although there are 2,966 medical marijuana dispensaries, 3,973 retailers, and 4,200 cultivators across the country, marijuana remains classified as a Schedule 1 drug by the federal government. This is the same classification as heroin, LSD, and ecstasy. At the same time, the public’s views of marijuana continue to evolve. According to a Pew Research Center survey taken in October of 2016, 57 percent of adults in the U.S. believe marijuana should be legal while 37 percent believe it should remain illegal, compared to 32 percent supporting legalization and 60 percent against ten years ago.
This evolving landscape creates risk and uncertainty for the industry, for the thousands of people who legally use it to relieve pain, nausea, muscle spasms, and other conditions, for those who use it for recreational purposes, and for the philanthropic community.
One misconception is why the industry is giving. Although Colorado Harvest Company and O.penVape will be the Pavilion’s headline sponsors, most do not give for marketing or visibility. “I think there is some misunderstanding oftentimes between cannabis (businesses) and nonprofits where nonprofits assume what cannabis wants out of donations is marketing and visibility, and we find the industry does not want that,” said Courtney Mathis, COO of KindColorado. Additionally, since the industry remains illegal in the federal government’s view, businesses can’t write off or deduct their gift on their taxes.