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How Nonprofits Navigate the Emerging Legal Marijuana Market

(Image: Dr. Lakisha Jenkins)

As Black Enterprise continues to find different ways and avenues for interested African American entrepreneurs to tap into the emerging marijuana market, we take an inside look at how nonprofits are fighting to navigate the challenges confronting people of color looking to enter this space.

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Dr. Lakisha Jenkins owns the California-based Kiona Foundation. She also owns Kiona’s Farm’acy, which has two locations in California: one in Tracy and the other in Oakdale. The foundation is in memory of Kiona T. Jenkins who was diagnosed with a Teratoma and Germinoma brain tumor in 2002. Kiona died in 2006. She was just 12 years old.

Jenkins has a doctorate in Naturopathy. She uses natural health modalities such as natural herbs nutrition, homeopathy, touch therapy and more to combat degenerative, chronic, or even terminal illness. She is also a professional member of the American Herbalist Guild which qualifies her as a master herbalist. She is the president of the board of directors of the California Cannabis Industry Association and serves on the board of the National Cannabis Industry Association.

BlackEnterprise.com: How long have you had the Kiona Foundation?

Dr. Lakisha Jenkins: The Kiona Foundation started in 2003. We originally started out as a cancer foundation but we have since changed our focus within the last six years to be a more all encompassing holistic organization.

You said you changed your focus six years ago. Was that when you included marijuana as part of your holistic therapy?

Yes.

Are you required to obtain licensing of any nature?

The Kiona foundations are 501 (C) (3) nonprofit organizations. But we also have Kiona’s Farm’acy which is a holistic health center and natural foods co-op shop. In our shops we have about 500 varieties of medicinal culinary spiritual herbs, teas, tea blends. We also have about 300 proprietary herbal blends that I created recipes for myself. Those are in the forms of capsules, tinctures, and salves depending on what ailment we are treating and what application is best for that. We try to make sure our blends cover everything.

Does this include cannabis?

If you have a recommendation for medicinal cannabis in the state of California we do also serve the recommended population.

So you do actual serve raw herb before it is converted into these salves and tinctures you spoke about earlier?

We do. We have bulk herbs available.

Do you need a license to operate in California?

There is no actual licensing procedure as far as the state goes. We have attorney general guidelines. We have a SB 420 that allows us to associate collectively or cooperatively and distribute

medicinal grade cannabis between patients and primary care givers. We don’t have actual laws or actual licenses unless your local municipality, city, or county has put some ordinance or licensing procedure in place.

Why do you think more African Americans like yourself are not involved in this business?

(Image: Dr. Lakisha Jenkins)

I don’t know that more African Americans are not necessarily engaged. I do know of a few. Unfortunately, in California, since we don’t have statewide regulations it is very difficult to publicize or market your business, or feel comfortable having the spotlight on your business when you face the scrutiny of the local or even statewide law enforcement possibly barging in and questioning the legalities and operational status of your business.

How does one become a member?

If you don’t have a recommendation for medical cannabis, there is a membership fee. You fill out a medical intake packet where you give us your medical information and then you fill out our membership agreement and pay your fee as long as you are a California resident carrying ID. If you do have a recommendation you still have to provide ID and the recommendation for medicinal cannabis to be able to access cannabis through our co-op.

How much is it to become a member?

$50 annual fee.

Are your blends or balms all cannabis infused? What about patients who want a marijuana-free option?

Some have and some don’t. For example, we have an herbal pain relief salve–it is really good for pain and any kind of external injuries–that has a blend of proprietary herbs including wild lettuce and white willow bark. There is a regular version that does not include cannabis and there is an extra strength version that is infused with a C.B.D or cannabinoid rich version of cannabis.

What kind of challenges do you face as a nonprofit marijuana provider?

Not having a strong regulatory system available on a statewide basis. That’s what we all find challenging. It makes the cost of doing business much greater. It makes doing business more difficult because you have to keep coming up with innovative ways to conduct business that other businesses don’t necessarily have to or are not burdened with.

Can you clarify?

Banking. We don’t have access to banking in our industry because the majority of the reasoning behind it is that bank deposits are federally insured and cannabis is still illegal on a federal level. And banks don’t feel comfortable with opening accounts for entrepreneurs in our industry. It makes most of us have to conduct business on a cash-only basis.

Can you provide another example of a challenge you face?

Because we have to conduct business on a cash-only basis, we spend a lot of money on security. If we had a regulatory system available in California that gave us clear, definitive laws that said what we can and cannot do, we would be able to function along the realm of normal businesses in the state of California. What we have instead is an unregulated system.

Advice for people who want to get into your space?

My best advice is if you want to get into the cannabis industry is to educate yourself. Read up about cannabis and the endocannabinoid system, the way cannabinoids and the active constituents of cannabis work with our bodies.  Most of the states in the U.S. that have a cannabis law have one that is only on a medical level. Understand how cannabis relates to your body and how it works and functions on a therapeutic level in order for you build your business around it.

You also might want to join the trade organizations. If you are in California there is the California Cannabis Industry Association. I would encourage interested people to join and attend events. We’re also helping to shape the regulations or current or future regulations in the state of California.

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