Bridging the Divide: Exploring Nonprofits’ Perceptions of Cannabis Philanthropy in the Changing Legal Landscape of the United States

Abstract

Cannabis dispensaries in the U.S. aim to contribute to communities through philanthropy, but some nonprofits hesitate to accept donations. This exploratory case study in Colorado investigates nonprofits’ perceptions of cannabis philanthropy by surveying 317 organizations. Despite cannabis being illegal federally but legal at the state level, most respondents viewed cannabis philanthropy positively. Of the respondents who had negative views, many believe their negative views would shift if cannabis were federally legalized. Furthermore, the majority do not consider funds derived from cannabis sales as “tainted” or coming from a morally questionable source. The findings shed light on the complexity of how cannabis philanthropy is perceived, informing how nonprofits can adapt proactively to evolving cannabis philanthropy dynamics, particularly considering potential shifts in federal law. Additionally, the study reveals a favorable environment for the cannabis industry to engage in philanthropy and partnerships with nonprofits, and the potential positive impacts of such activities.

Keywords

cannabis philanthropy cannabis legalization marijuana tainted money nonprofits

Get full access to this article

View all access options for this article.

References

Allui

Pinto

(2022). Non-financial benefits of corporate social responsibility to Saudi companies. Sustainability, 14(6), 3446. https://doi.org/10.3390/su14063446

Auxier

Airi

(2022). The pros and cons of cannabis taxes. Tax Policy Center. https://www.taxpolicycenter.org/publications/pros-and-cons-cannabis-taxes/full

Becker

Boenigk

Willems

(2020). In nonprofits we trust? A large-scale study on the public’s trust in nonprofit organizations. Journal of Nonprofit & Public Sector Marketing, 32(2), 189–216. https://doi.org/10.1080/10495142.2019.1707744

Bennett . (2019). Passing on pot: When environmental organizations disengage from political consumerism in highly stigmatized sectors. Environmental Politics, 1–28. https://doi.org/10.1080/09644016.2019.1654237

Borchardt

(2017, September 11). Charities just say no to cannabis contributions. Forbes. https://www.forbes.com/sites/debraborchardt/2017/09/11/charities-just-say-no-to-cannabis-contributions/?sh=63b7e33768f8

Cohen

(2017). Corporate philanthropy—on weed. Cannabis Now. https://cannabisnow.com/corporate-philanthropy-weed/

Colorado Department of Revenue . (2023a). Marijuana sales reports. https://cdor.colorado.gov/data-and-reports/marijuana-data/marijuana-sales-reports

Colorado Department of Revenue . (2023b). Marijuana tax reports. https://cdor.colorado.gov/data-and-reports/marijuana-data/marijuana-tax-reports

Colorado Department of Revenue Specialized Business Group . (2023). MED licensee information. https://sbg.colorado.gov/med/licensee-information

10.

Colorado General Assembly . (2021). Colorado online tax Handbook. https://leg.colorado.gov/agencies/legislative-council-staff/marijuana-taxes%C2%A0#TOC

11.

Creswell

J. W.

(2007). Qualitative inquiry and research design: Choosing among five approaches (2nd ed.). Sage Publications.

12.

Creswell

J. W.

Báez

J. C.

(2021). 30 essential skills for the qualitative researcher. Sage Publications.

13.

Creswell

J. W.

Miller

D. L.

(2000). Determining validity in qualitative inquiry. Theory Into Practice, 39(3), 124–130. https://doi.org/10.1207/s15430421tip3903_2

14.

Dunn

(2010). Strategic responses by a nonprofit when a donor becomes tainted. Nonprofit and Voluntary Sector Quarterly, 39(1), 102–123. https://doi.org/10.1177/0899764008326770

15.

Elcock

(2022). Psychedelic philanthropy: The nonprofit sector and Timothy Leary's 1960s psychedelic movement1960 s psychedelic movement. Journal of the History of the Behavioral Sciences, 58(1), 85–104. https://doi.org/10.1002/jhbs.22083

16.

Engel

Jann

Lynn

Scherpenzeel

Sturgis

P. J.

(2015). Improving survey methods: Lessons from recent research. Routledge, Taylor & Francis Group.

17.

Fataar

Goodman

Wadsworth

Hammond

(2021). Consumer perceptions of ‘legal’ and ‘illegal’ cannabis in US states with legal cannabis sales. Addictive Behaviors, 112(2021), 106563. https://doi.org/10.1016/j.addbeh.2020.106563

18.

Galbreath

(2010). How does corporate social responsibility benefit firms? Evidence from Australia. European Business Review, 22(4), 411–431. https://doi.org/10.1108/09555341011056186

19.

Gallup . (2021). Support for legal marijuana holds at record high of 68%. https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx

20.

Habecker

Bevins

R. A.

(2023). Attitudes in 2020 towards medical and recreational marijuana in prohibitionist Nebraska. Journal of Drug Issues, 53(1), 79–95. https://doi.org/10.1177/00220426221087913

21.

Harper

Jorgensen

(2023). Crime in a time of cannabis: Estimating the effect of legalizing marijuana on crime rates in Colorado and Washington using the synthetic control method. Journal of Drug Issues, 53(4), 552–580. https://doi.org/10.1177/00220426221134107

22.

Harris-Lane

L. M.

Storey

D. P.

Drakes

D. H.

Donnan

J. R.

Bishop

L. D.

Harris

(2023). Emerging adult perceptions of cannabis consumption: Examining changes in perceptions from pre-legalization to post-legalization. International Journal of Drug Policy, 120(2023), 104193. https://doi.org/10.1016/j.drugpo.2023.104193

23.

Harrison

B. J.

(2001). Tainted money. Fund Raising Management, 32(7), 34–37.

24.

Hauser

(2023, February 9). Cannabis legislative and policy update [Webinar]. Institute of Cannabis Research Colorado State University Pueblo.

25.

Hopkins

(2022, April 21). Cannabis under federal law- what’s the fuss about Section 280E? Bloomberg Tax. https://news.bloombergtax.com/tax-insights-and-commentary/cannabis-under-federal-law-whats-the-fuss-about-section-280e

26.

Jaeger

(2023, October 12). Colorado dispensaries have sold more than $15 billion worth of marijuana since legalization, generating $2.5 billion in tax revenue, state reports. Marijuana Moment. https://www.marijuanamoment.net/colorado-dispensaries-have-sold-more-than-15-billion-worth-of-marijuana-since-legalization-generating-2-5-billion-in-tax-revenue-state-reports/#

27.

Jones

(2014). Dirty money. Journal of Academic Ethics, 12(3), 191–207. https://doi.org/10.1007/s10805-014-9211-5

28.

Karlik

(2020, January 24). Colorado among states with highest rate of per capita marijuana dispensaries. Gazette. https://gazette.com/premium/colorado-among-states-with-highest-rate-of-per-capita-marijuana/article_c2fc3e12-e2c8-541a-84f6-50f28638af2b.html#:∼:text=Verilife%2C_a_dispensary_company_with,15.6%3B_and_Montana_with_15.1

29.

Khademi

Hallinan

C. M.

Conway

Bonomo

(2023). Using social media data to investigate public perceptions of cannabis as a medicine: Narrative review. Journal of Medical Internet Research, 25(2), Article e36667. https://doi.org/10.2196/36667

30.

Kilwein

T. M.

Wedell

Herchenroeder

Bravo

A. J.

Looby

(2019). A qualitative examination of college students’ perceptions of cannabis: Insights into the normalization of cannabis use on a college campus. Journal of American College Health: J of ACH, 70(3), 733–741. https://doi.org/10.1080/07448481.2020.1762612

31.

Kogan

L. R.

Hellyer

P. W.

Silcox

Schoenfeld-Tacher

(2019). Canadian dog owners’ use and perceptions of cannabis products. Canadian Veterinary Journal, 60(7), 749–755.

32.

Marijuana Policy Project . (2022). Cannabis tax revenue in states that regulate cannabis for adult use. https://www.mpp.org/issues/legalization/cannabis-tax-revenue-states-regulate-cannabis-adult-use/

33.

Mark

Gryczynski

Axenfeld

Schwartz

R. P.

Terplan

(2017). Pregnant women’s current and intended cannabis use in relation to their views toward legalization and knowledge of potential harm. Journal of Addiction Medicine, 11(3), 211–216. https://doi.org/10.1097/ADM.0000000000000299

34.

Marks

(2023, October 8). Cannabis firms are cut off from the US financial system, but relief is in sight. The Guardian. https://www.theguardian.com/business/2023/oct/08/cannabis-companies-us-financial-system-banking-safer-act

35.

Matthews

A. L.

Hickey

(2023, November 7). More US states are regulating marijuana. See where it’s legal across the country. CNN. https://www.cnn.com/us/us-states-where-marijuana-is-legal-dg/index.html

36.

May

(2020). The ethics of accepting designated financial gifts to museums: Considering donations that maintain public confidence. [Doctoral dissertation, Walsh University].

37.

McCambridge

(2020, January 26). Donations from cannabis companies rejected: Finding the fit may take Nonprofit Quarterly. https://nonprofitquarterly.org/donations-from-companies-rejected-finding-the-fit-may-take-time/

38.

McGinty

E. E.

Niederdeppe

Heley

Barry

C. L.

(2017). Public perceptions of arguments supporting and opposing recreational marijuana legalization. Preventive Medicine, 99(2017), 80–86. https://doi.org/10.1016/j.ypmed.2017.01.024

39.

Miller

(2016, February 22). In Colo., a look at life after marijuana legalization. Boston Globe. https://www.bostonglobe.com/metro/2016/02/21/from-colorado-glimpse-life-after-marijuana-legalization/rcccuzhMDWV74UC4IxXIYJ/story.html

40.

MJBizDaily . (2022, October 14). Community outreach helping cannabis companies gain edge on rivals, attract customers. https://mjbizdaily.com/community-service-helping-cannabis-companies-gain-edge-on-rivals-attract-customers/

41.

Morris

(2008). Tainted money and charity: Do 501(c)(3)s have a right to refuse a gift? Nonprofit and Voluntary Sector Quarterly, 37(4), 743–755. https://doi.org/10.1177/0899764008324319

42.

National Public Radio . (2016, October 1). Where does Colorado’s Marijuana money go? National Public Radio. https://www.npr.org/2016/10/01/496226348/where-does-colorados-marijuana-money-go

43.

Otañez

Vergara

(2021). Cannabis corporate social responsibility: A critical and mixed-method approach. The Routledge handbook of post-prohibition cannabis research (pp. 183–191). Routledge.

44.

Patton

M. Q.

(2015). Qualitative research & evaluation methods: Integrating theory and practice (4th ed.). Sage Publications, Inc.

45.

Puyear

(2020, April 3). Cannabis wants to support nonprofits–but not everyone wants help. Greenway Magazine. https://mogreenway.com/2020/04/03/cannabis-wants-to-support-non-profits-but-not-everyone-wants-help/

46.

Rahwan

Leuker

(2023). When tainted money should fund public goods: Fundraising professional and public moral preferences. PNAS nexus, 2(9), pgad285. https://doi.org/10.1093/pnasnexus/pgad285

47.

Rendon

(2021, April 3). Nonprofits gain funding from unusual source: Marijuana sales. Associated Press. https://apnews.com/article/marijuana-business-california-recreational-marijuana-ae20c17fc439570783d6be602e2e4e6f

48.

Resko

S. M.

Szechy

K. A.

Early

T. J.

Ellis

J. D.

Hicks

Agius

(2021). Perceptions of public health consequences of marijuana legalization. Addiction Research and Theory, 29(3), 255–262. https://doi.org/10.1080/16066359.2020.1823971

49.

Rooster . (2020, May 26). Some Denver charities still won’t accept donations from cannabis companies, even during a global pandemic. https://therooster.com/articles/some-denver-charities-still-wont-accept-cannabis-companies-donations-even-during-a-global-pandemic/

50.

Rothschild

Milofsky

(2006). The centrality of values, passions, and ethics in the nonprofit sector. Nonprofit Management and Leadership, 17(2), 137–143. https://doi.org/10.1002/nml.139

51.

Shorey Fennell

Magnan

R. E.

Ladd

B. O.

Fales

J. L.

(2022). Young adult cannabis users’ perceptions of cannabis risks and benefits by chronic pain status. Substance Use & Misuse, 57(11), 1647–1652. https://doi.org/10.1080/10826084.2022.2102186

52.

Siebrase

(2018, January 13). Giving green—can cannabis and social responsibility coexist? https://www.cobizmag.com/giving-green-can-cannabis-and-social-responsibility-coexist/#:∼:text=There%27s_one_bright%2Dline_rule,should_not_accept_marijuana_money

53.

Summers

D. J.

(2018). The business of cannabis: New policies for the new marijuana industry. Bloomsbury Academic.

54.

Tasimi

Gelman

S. A.

(2017). Dirty money: The role of moral history in economic judgments. Cognitive Science, 41(Suppl 3), 523–544. https://doi.org/10.1111/cogs.12464

55.

The National Organization for the Reform of Marijuana Laws . (2003, November 10). State-by-State look at the medical necessity defense. https://norml.org/wp-content/uploads/pdf_files/brief_bank/NORML_Legal_Brief_Bank_Medical_Necessity_Defense_by_State.pdf

56.

Wakefield

Glantz

S. A.

Apollonio

D. E.

(2022). Content analysis of the corporate social responsibility practices of 9 major cannabis companies in Canada and the US. JAMA Network Open, 5(8), Article e2228088. https://doi.org/10.1001/jamanetworkopen.2022.28088

57.

White

K. J.

Podrasky

(2018). Accepting cannabis donations for your non-profit organization: Risks, rewards, and best practices. https://cannamakeadifference.org/wp-content/uploads/2018/03/NPOwhitepaper.pdf

58.

Winstock

A. R.

Lynskey

M. T.

Maier

L. J.

Ferris

J. A.

Davies

E. L.

(2021). Perceptions of cannabis health information labels among people who use cannabis in the U.S. and Canada. International Journal of Drug Policy, 91(2021), 102789. https://doi.org/10.1016/j.drugpo.2020.102789

59.

Boateng

F. D.

Lang

(2020). The spillover effect of recreational marijuana legalization on crime: Evidence from neighboring states of Colorado and Washington state. Journal of Drug Issues, 50(4), 392–409. https://doi.org/10.1177/0022042620921359

60.

Yaskewich

D. M.

(2023). Local prohibitions on marijuana businesses with on-site consumption: Evidence from New York state. Journal of Drug Issues, 53(4), 602–620. https://doi.org/10.1177/00220426221138229

61.

Yin

R. K.

(2003). Case study research: Design and methods (5). Sage.