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First and foremost, when when wanting to know how to open a dispensary starting a non profit collective you should know that your entire operation depends on your motives and influence the decisions you make regarding your patients and community. If your motive is compassion, your actions will reflect it. You should keep in mind that if you are insincere, you put yourself and others at risk.

Before you know can get to how to start a non profit collective, the first thing to know is what a medical cannabis dispensing collective/dispensary (also called cannabis centers or compassion clubs) is. It is a legal organization which provides medical marijuana to its members. This makes one wonder on how to start a non profit collective and how this is possible.

There are certain state laws which allow marijuana to be cultivated for medicinal purposes and the state health and safety codes allow certain organizations to collectively or cooperatively do so. All the patients and their primary caregivers are legally-qualified. Though laws aren’t very clear about the collective or the organization nowhere does it say that medical cannabis can be grown for profit i.e., it can only be for a non profit organization. No matter the type of organizational structure, any organization can referred to as not-for-profit business if reinvests the revenues in the service of its member or any other type of noncommercial activity.

A not-for-profit organization shouldn’t be confused with non-profit organizations (such as schools, churches, hospitals, etc) which are exempt from paying taxes as they do educational, religious or charitable work. However, providing medical cannabis is not seen as a tax-exempt activity and under the state laws will still have to pay taxes

The medication should always be obtained from its registered members, which may seem as a challenge for new dispensing collectives. Also, it is important to build a membership base before having a wide selection to offer them.

The most important piece of advice anyone can give you on how to start a non profit collective is to keep the legal jargon on the tip of your tongue to avoid legal risks for example, calling ‘Marijuana Cannabis’, buying or selling as acquiring or providing. Using proper terminology is bound to influence those around you. You should always keep in mind that marijuana remains illegal under federal laws although some states and cities have adopted the medical marijuana patient programs.

You can enter your email address below to get a free email course that will explain the state requirements on how to start a non profit collective and keep the necessary medical marijuana business papers (the licenses, the business permits etc).

Learn more from the free guide at start-a-dispensary.com