tomcatjones
Active Member
yup... this is how an NPO compassion club would work here in this state.Alright well I didn't read this whole thread. Just the 1st few and last few, so I apologize if I'm restating information but I am pretty informed on the subject and would like to offer my knowledge to anyone who might be benefited.
IN CALIFORNIA:
Patients who belong to a Collective may "share", "give", "donate", (whatever you wanna call it) meds to other patients who also belong to their collective. Donations (money) may be accepted in exchange (for meds) but it (the money) MUST go through the the Non-Profit Corporations (collectives) accounting process.
i.e. Let's say Joe is the president of a Non-Profit Collective in CA and Joe "sells" an oz through his collective for $300 (including CA sales tax) to a patient. That $300 can not go directly into Joes pocket. Even if Joe grew it and and did all the work to "sell" it. That $300 has to 1st go to the Non-Profit Corp. Usually it would be deposited into the collective bank account. But the main thing is that the transaction is to be documented in the companies books and CA sales tax is to be paid for said transaction.
This must happen with every dollar that comes into the collective. The same exact thing must be done with every dollar spent. If a vendor/grower comes in and "donates" a lb. for $3000, it must be documented in the companies books that $3000 was spent on 1 lb of meds and was paid to said Vendor.
FYI: This is how all tax paying companies (are supposed to anyways) operate. The difference between a for-profit and a not-for-profit corporation is how board-members (owners) get paid.
In a for-profit situation the owner MAY take all left over money at the end of the month, week, etc (however they decide to break up the year, usually monthly or bi-weekly)
In a not-for-profit ALL "profits" must be re-invested back into the company. The "owners" are paid a pre-determined salary regardless of how much money the company makes.
So MAIN difference here is that the owners of of for-profit business take all the left over money because they own the company and therefore the money.
For a non-profit the "owner" doesn't technically "own" the comapany (and therefore the money) but just works for the collective (even though he fulfills the duties and does work, just like an owner would). The company must pay the "owner" of a non-profit, because the money belongs to the company, not the "owner"
It is my understanding that as long as a collective abides by these financial guidelines the medium they choose i.e. delivery, retail style store-front, or farmers market is up to them.
In the case of a (legal) FM, the growers are operating as collective employees and any payment they receive is from the Collective itself and not from the actual patient. You may hand your money to the grower but the grower gives the money to the collective. Who in turn accounts for it and then pays the grower for growing the meds for the collective.
Again this is for CA only. I dunno about the rest of the states.