National Association of Cannabis Businesses Inc

Nonprofit profile at a glance

EIN
932784295
IRS 990 coverage
2023–2023
Forms available
Form 990 2023
Location
Brookfield, WI, USA
Phone
2032918238
Rating confidence
Limited

Reported finances

Revenue
$240,600
Expenses
$239,808
Assets
$792
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.

Leadership & pay

2 people listed

Executive titles in this filing

  • JOSHUA LATERMAN (DIRECTOR, PRESIDENT, SECRETARY)

Highest reported compensation

  • JOHN MURRY (TREASURER): $15,125 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The nacb was established in order to promote the general welfare of the cannabis industry and its participants by fostering practices intended to support and sustain the growth of the industry in a manner consistent with nacb's tax-exempt purposes. In furtherance of this purpose, the objectives of the nacb are as follows:(a) to assist its members in serving their equity holders, customers, employees, and community in a responsible and profitable manner;(b) to improve the competitive environment in the cannabis industry by fostering the survival and prosperity of cannabis-related businesses in the united states;(c) to provide its members with educational programs and services and membership communications specific to the cannabis industry; and(d) to make relevant and accurate data available to policymakers and legislators in order to enable them to make informed decisions and to appropriately design laws, regulations, rules and guidance relating to the cannabis industry

What it reported doing in 2023

Improvement of overall business conditions of the cannabis industry as a whole.

Operating model

Revenue model
Donor-supported. 91% of the money available for current operations came from contributions and gifts.
Distribution model
Cannot be determined from the filing. The filing does not provide enough consistent spending detail to tell whether the nonprofit works directly or through others.

The verdict

- The available evidence is not sufficient to produce an overall rating for this filing. This is not a warning sign.

Rating breakdown

  • Financial Efficiency: NotEnoughData
  • Transparency & Controls: 92
  • Accountability: 45
  • Sustainability: 34
  • Growth: NotEnoughData

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: Limited
  • Program expense ratio: Limited
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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: 50%; rating input score 50; 16th 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: 0.3%; rating input score 42; 42nd percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 81; 81st percentile among comparable filings
  • Officer compensation ratio: 1.5%; rating input score 37; 37th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: Limited
  • Asset growth: Limited

Details

  • Where the money goes: Financial trends and filed revenue, expense, asset, and liability detail
  • Governance: 1 of 2 board members independent · 3 of 8 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $15K · 2 people listed
  • Consistency: 7 of 7 current checks pass
  • Schedules: 3 filed schedules · includes major donors
  • 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.

  • Review — Accountability: Independent voting board scored 50/100.
  • Moderate — Accountability: Governance controls: 4 of 7 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • Moderate — Sustainability: Operating margin scored 42/100.
  • Moderate — Sustainability: Officer compensation ratio scored 37/100.