Update on nondisclosure of charities’ donor rule

Posted Leave a commentPosted in Cannabis, Nonprofit, Tax Planning

Revenue Procedure 2018-38 remains controversial. Lawmakers (mostly Democrats) are concerned that it could encourage the flow of dark money into the tax-exempt sector. Their concern is valid. I know of private foundations that have already reorganized as public charities to take advantage of the secrecy rule change for their own benefit. No doubt, this rule […]

Banking is difficult – not impossible – for marijuana related businesses

Posted Leave a commentPosted in Banking, Cannabis, Marijuana related business (MRB)

I often hear comments that you can’t get a bank account or credit card processing for a marijuana related business (MRB). That is just not true. Peer CPAs on the west coast have reported success in building baking relationships for their clients and we are sure that this trend will expand eastward. What is true […]

Avoid being a fraud victim when venturing into the cannabis industry

Posted Leave a commentPosted in Accounting, Cannabis

It seems like every week lately we read about another cannabis industry fraud. Investors are losing millions. Regulators are levying fines. The IRS, tax court and states are moving at full speed against these companies that simply lack effective management controls. In one tragic case, a cannabis business founder committed suicide after losing millions in […]

Two tips for new nonprofit organizations

Posted Leave a commentPosted in Accounting, Cannabis, Nonprofit

There are more than a million nonprofit businesses in the U.S. with more every day. State requirements that new cannabis companies be in nonprofit form bring more attention. Yet most nonprofit organizations are small volunteer-driven businesses with small budgets. They still need to make smart business management decisions, beginning with the business start-up. Starting out […]