Glossary and FAQ¶
A short reference for terms and questions that come up reading the proposal. If something here is wrong, unclear, or missing, please open an issue.
Nothing on this page is legal or tax advice. References to law and IRS guidance are starting points, not opinions.
Glossary¶
Organizational forms¶
501©(3) — Tax-exempt charitable organization. Donations are tax-deductible. Lobbying is limited; political activity is prohibited. Not the proposed structure for the Guild.
501©(4) — Tax-exempt social welfare organization. Lobbying is unlimited; some political activity allowed. Donations are not deductible. Not the proposed structure.
501©(6) — Tax-exempt business league or trade association. The proposed structure. Members share a common business interest (a profession, an industry). Lobbying is unlimited; some political activity allowed; donations are generally not deductible by individuals. Member dues may be deductible as a business expense by the member, except for the lobbying portion. (IRS reference)
Trade association / business league / professional society — Practical synonyms for a 501©(6) entity organized to advance the common business interests of its members.
Tax and finance¶
Form 1024 — IRS application for recognition of exemption under sections of the Internal Revenue Code other than ©(3). Filed electronically via Pay.gov. User fee: $600. (About Form 1024)
Form 990 — Annual information return that most tax-exempt organizations file with the IRS. There are simpler versions (990-N postcard, 990-EZ) for smaller orgs.
Qualified sponsorship payment (§513(i)) — A sponsor payment in exchange for which the sponsor receives acknowledgment (logo, name, neutral description), not advertising (price, comparative or qualitative claims, calls to action). Qualified payments are not taxable to the Guild as unrelated business income. The proposal uses §513(i) framing for sponsor recognition.
UBIT — Unrelated Business Income Tax — Tax on income from a trade or business regularly carried on that is not substantially related to the org's exempt purpose. Sponsorships, ads, and certain merch can trigger UBIT if not structured carefully.
§162(e) member-notice approach — Mechanism by which a 501©(6) tells members what portion of their dues went to lobbying so members can correctly exclude that portion from their own business-expense deduction. The alternative is a "proxy tax" paid by the Guild itself; the proposal recommends the member-notice approach.
Articles of Incorporation — The state-level founding document that creates the nonprofit corporation. Filed with the Secretary of State (Maine: Title 13-B; Minnesota: Chapter 317A).
Bylaws — The internal rulebook adopted by the Board governing how the corporation operates. Not filed with the state. Override-able only by a vote per their own amendment clause.
EIN — Employer Identification Number — The IRS-issued number for an entity, the nonprofit equivalent of a Social Security Number. Required before opening bank accounts and filing exemption applications.
Governance¶
Board of Directors — The elected body legally and fiduciarily responsible for the corporation. Acts as a body at meetings; directors do not act unilaterally.
Officers — Roles (Chair, Vice Chair, Secretary, Treasurer at minimum) elected by the Board and given specific authorities by the bylaws.
Standing committee — A permanent committee created by the bylaws (e.g., Governance, Finance, Education, Membership, Ethics).
Conflict of Interest (COI) — Situation where a director, officer, or key employee has a personal interest that could improperly influence a Guild decision. Managed through annual disclosure and recusal rules.
Quorum — The minimum number of members or directors who must be present for a meeting to take binding action. Defined in the bylaws.
Robert's Rules — A common parliamentary procedure used to run formal meetings. Many small boards adopt simplified or "consensus + Robert's-as-fallback" approaches.
ADR — Architecture/Action Decision Record — A short, dated, numbered file that captures a material decision: context, options considered, decision, consequences. Stored in decisions/ in this repo.
Membership and credentials¶
Friend of the Guild — Affiliate / supporter membership tier; not a credentialed professional.
GPS — Ganjier Product Specialist — Existing product-knowledge credential.
Certified Ganjier — Existing full sensory and craft credential.
Member-led / member-driven — The membership elects (or ratifies) the Board, votes on bylaws changes, and has standing to influence the Guild's direction. Distinct from a founder-controlled or sponsor-controlled org.
Reciprocity — Recognition of training or credentials from another body as counting toward a Guild credential, under defined conditions.
Brand and language¶
Brandmark — A logo. The brand guide defines three: A (horizontal lockup, default), B (vertical), and icon-only (the G⊕G mark alone).
Mocha (#524235) — One of the Guild's primary brand colors, used heavily for body text and dark elements.
FAQ¶
Why a 501©(6), not a 501©(3)?¶
Because the Guild's purpose is to advance the common business interests of cannabis professionals — that's exactly what a 501©(6) is for. A ©(3) would limit advocacy and would have to define the work as charitable rather than professional, which would distort the mission. Donations not being tax-deductible is the tradeoff. See ADR 0001 and Issue #6.
Why Maine or Minnesota?¶
Both are mid-cost, well-supported nonprofit jurisdictions with national-scope-friendly statutes (Maine Title 13-B, Minnesota Chapter 317A). The Guild has no operational reason to favor a high-cost or low-flexibility state. Final pick is the #1 pinned feedback issue.
Is the Guild operating today?¶
No. The Guild is pre-formation. Articles of Incorporation have not been filed; IRS recognition has not been applied for; no bylaws or policies have been adopted. The brand exists; the people exist; the proposal exists. Forming the entity is the next step.
Can I donate?¶
Not yet, in any tax-meaningful way. Once the Guild is formed and has IRS recognition, founding-sponsor commitments and member dues will be the funding pathways (/finance). In the meantime, the most valuable contribution is review of open issues.
Are member dues tax-deductible?¶
For most members, dues paid to a 501©(6) trade association are deductible as a business expense (not as a charitable donation), except for the portion attributable to lobbying. The Guild plans to use the §162(e) member-notice approach, so each member receives the deductible/non-deductible breakdown annually.
Does the Guild touch cannabis?¶
No. The Guild is a non-plant-touching education and standards body. It does not grow, sell, distribute, or recommend specific products. This separation is essential for tax classification, banking access, insurance, and brand neutrality.
How is the Guild different from the existing Ganjier program / GPS / Certified Ganjier?¶
The existing credentials are run by a private educator. The Guild proposal is a member-governed 501©(6) trade association that would administer credentials in service of the profession. The relationship between the existing program and the Guild is itself an open question — see #3 certification framework.
Who's on the board?¶
No one yet. Board composition is open question #5. The proposal recommends 5–9 directors with seats explicitly recruited across cultivation, retail, hospitality, education, sensory/craft, compliance, and at least one independent.
Can I help draft a section?¶
Yes. Open a Pull Request against the relevant file and reference the related issue. Material decisions still require Board ratification once the Board exists.
How is this different from a coalition or working group?¶
A coalition is loose and time-bounded; a 501©(6) is a chartered legal entity with bylaws, officers, fiduciary duties, financial books, IRS reporting, and a defined membership. The Guild is being proposed as the latter.