Cannabis in Equity Inc

Nonprofit profile at a glance

EIN
931522831
IRS 990 coverage
2023–2024
Forms available
Form 990 2024
Location
Brookfield, WI, USA
Phone
2032918238
Rating
55
Verdict
MIXED
Rating confidence
Moderate
Sector
Crime, Legal Related N.E.C.

Reported finances

Revenue
$100,000
Expenses
$125,338
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

3 people listed

Highest reported compensation

  • JOHN MURRY (TREASURER): $11,250 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Helping individuals who are poor, distressed, or have been disadvantaged due to criminal conviction for non-violent, marijuana-related criminal offenses ("qualifying offenses; and such individuals, "qualifying persons"). The organization intends to aid and support such qualifying persons by (i) developing a legal aid program to assist with, or otherwise facilitate, the expungement of qualifying offenses, and (ii) developing and providing educational programming for qualifying persons that are interested in seeking employment or entrepreneurial opportunities in, or otherwise transitioning into productive and responsible participants of, the legal cannabis economy. The expungement of qualifying offenses from the criminal records of qualifying persons and the improvement or development of their capabilities through educational programming and training will, individually and collectively, promote social welfare by better positioning them to obtain gainful employment or otherwise part.

What it reported doing in 2024

Legal aid program: a. The activity is a legal aid program that helps qualifying persons expunge qualifying offenses in states that have legalized or decriminalized the recreational use of cannabis. The organization will do so in two ways: (i) partnering with local, county, and state prosecutors to develop and implement technology designed to automatically clear or expunge qualifying offenses, and (ii) assist qualifying persons seeking to expunge qualifying offenses on an individual basis.b. The organization intends to conduct the activity by retaining or employing consultants and professionals possessing the requisite knowledge and expertise.c. The activity will be conducted in states that have legalized or decriminalized the recreational use of cannabis. The organization will initially offer legal aid program services in los angeles, California, with the intention of ultimately expanding the program to other locales in California and in other jurisdictions. The organization intends to secure office space in los angeles, California for use by its staff and advisors in carrying out its charitable purposes.d. The percentage of total time allocated to this activity is expected to be approximately 60%.e. The activity is funded through donations. Approximately 60% of the organization's overall expenses are expected to be allocated to this activity.f. The activity furthers the organization's exempt purpose of providing relief to poor, distressed, or underprivileged individuals by promoting social welfare, justice, and equity through the provision of legal aid program services to qualifying persons that, by virtue of their conviction for a qualifying offense, have been harmed by the historically uneven and disparate application of marijuana-related criminal laws prior to the legalization or decriminalization of marijuana (e.g., the conviction has undermined their ability to become productive citizens by hindering access to housing, economic, educational or other opportunities).

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

MIXED - The filed numbers largely add up. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 40
  • Transparency & Controls: 92
  • Accountability: 55
  • Sustainability: 9
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 49.3%; rating input score 49
  • Program expense ratio: 39.3%; rating input score 39
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 18th percentile among comparable filings
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -25.3%; rating input score 11; 11th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 9%; rating input score 30; 30th percentile among comparable filings

Growth

  • Program expense growth: -97.3% per year; rating input score 0; 1st percentile among comparable filings
  • Revenue growth: -85.7% per year; rating input score 0; 0th percentile among comparable filings
  • Asset growth: -200% per year; rating input score 0; 0th percentile among comparable filings

Details

  • Where the money goes: 49.3% of revenue deployed · 39.3% of spending went to programs
  • Governance: 2 of 3 board members independent · 3 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $49K in reported program spending
  • Leadership: top reported pay $11K · 3 people listed
  • Consistency: 16 of 16 current checks pass
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 2 filing years from 2023 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 1 filed related-organization link
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Moderate — Financial Efficiency: Mission deployment rate scored 49/100.
  • Moderate — Financial Efficiency: Program expense ratio scored 39/100.
  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • High — Sustainability: Operating margin scored 11/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Officer compensation ratio scored 30/100.