According to Cannabiz Media, giving to charity by cannabis-related businesses, including hemp and CBD businesses, is hampered because of the federal prohibition on cannabis products—even medicinal products.
This means institutions with special status with the government like
- non-profit organizations
- grant receiving organizations
- school and universities
don’t feel comfortable receiving charitable funds from cannabis organizations (even medical organizations) for risk of running afoul of the law and jeopardizing their special status with government regulators.
While this has not yet changed for medical cannabis, new banking guidance issued by the Federal Reserve Bank of the United States appears to have lifted restrictions on charitable giving by the hemp and CBD industry.
Since 2018, hemp and CBD derived from hemp have been legal federally. This means there is no reason for banks to withhold services from hemp and CBD businesses. Unfortunately, they continued to do so until guidance was issued to them directly.
Accordingly on December 3rd, the Federal Reserve bank issued guidance stating:
“Because hemp is no longer a Schedule I controlled substance under the Controlled Substances Act, banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations.”
This is great news.
It has always been shameful that CBD businesses and hemp businesses have been blocked from donating to worthy medical causes because of banking regulation.
CBD holds so much promise to help with a broad range of medical conditions so it was unfortunate that not only were funds blocked but in-kind donations of CBD products too.
Now that banking restrictions have been lifted, hopefully, funds and medicinal goods will more freely flow to worthy charitable organizations.