Finances

Establishing a clear financial strategy is fundamental to the success of any psychedelic society. Whether you are a 501(c)(3) organization or another type of entity, it’s essential to allocate funds responsibly, ensuring that every dollar serves the long-term health and growth of your society.

From routine expenses such as website hosting and event space rentals to more specific costs like facilitator fees or materials for workshops, financial literacy is key.

Financial Strategy

Allocating Funds In a 501c3

Typically, in a 501c3, the ED would work with the president to create a budget. Then the board of directors takes the proposed budget and then approves it and that's accountability because the board doesn't get paid.
Paying for your domain name, your website, annual zoom account, other hosting software
If you're renting a space for an event
Paying facilitators (ie trained therapists for integration circles), paying speakers
Some events require materials (ie tie dye, cacao…etc)
Filing for 501c3 status
Fees for payment processing
advertising /postering
Merchandise
For 501c3 you can pay and executive director, but on the board is volunteer based
- Accounting practices are NEEDED for 501c3
- You can hire volunteer coordinators or other people to execute services (ie hosting specific events), administrative assistant
You cannot pay a volunteer - they have to be a volunteer or an employee, they can't do both. You can buy them food, you can reimburse them for costs.

Revenue Streams

Membership

Some societies have members that pay small monthly amounts in order to get access to certain things that others wouldn’t
Membership can be used as a source of income for the organizers and it is also a way to get people to commit to the cause and the community and then once they’re paying monthly or annual fees, they’re more dedicated to show up and be involved. There’s more accountability and attachment
How is a member different from an attendee
- It's a transactional experience, could be cheaper than paying one off admissions to events - major reason is to save money
- Versus being a member of a community that someone is engaging with in a vulnerable and deep way
- So ask yourself what does a ‘member’ mean for your organization
- Membership can also include steering and participating in the organization
What are the different tiers of membership?
- There are three levels of participation:
  - Casual/unpaid (commons-based peer production); Dating/partly paid (Commons/coop onboarding process); and Committed/paid (Commons and Coop full membership). Casual members have no responsibilities and Committed members review their work for inclusion, or not
  - Dating members have ongoing responsibilities (pro-bono and care work) during a nine month trial period before mutual decisions are made about becoming Committed. They are peer mentored by the collective and continually evaluated.
  - Committed members have ongoing responsibilities (pro-bono and care work), evaluated quarterly. Members unable to maintain these are downgraded from the Coop.
Can also be separated into different expertise, for example, growers, researchers, people focused on politics… etc.
- These tiers can also have leadership roles for each of them
Some societies do applications for membership that require a certain amount of volunteering with org before someone can become a member - it's a way of screening.
Ask yourself; What is the value proposition that your society offers that justifies the energetic exchange of money?
- You have to communicate this to your membership pool
- Situation - problem - solution - victory
- You can base your problem in the mental health industry and solution is community-based psychedelic healing and change public perspective. Victories; we;ve had this many meetings, we’ve been able to act these types of organizational structures
- People want to be a part of the change and then they feel a sense of ownership since it aligns with their values - with this, people will continue their engagement
Different tiers can have access to various well-crafted experiences specifically for members. Or they can get takeaways ie; merch
Make sure not to offer anything illicit for members
Patreon is a helpful way to manage membership levels
Member pathway/onboarding:
- You’re going to want an ever escalating series of keeping people engaged over time
- Could include recurring events, group gatherings, political campaigns, financial goals or funding
- Starts with someone joining: so their name and email address needs to be gathered somehow.
  - Could be valuable to have people sign a membership form
  - Then can add this persons info to square, can track their donations information.
  - Then can download that member information info mailchimp which allows you to send texts or emails. Could even be automated, as soon as they enter they get an automated email that allows them to subscribe to the monthly newsletter and staying up to date
  - This canvassing allows people to stay engaged and allows them to choose the level at which they engage.
Difference between donating members and volunteers
Can also use a CRM - Customer Relationship Management software

Online Store

An online store can be an excellent way to generate additional revenue for your psychedelic society, while also promoting your brand and values.

Whether you're selling merchandise like t-shirts, mugs, or event-related materials, an online store can provide a convenient platform for supporters to purchase items that both contribute to the cause and serve as marketing tools. For example, custom merchandise can raise awareness about your society, create a sense of belonging among members, and spread your mission to a wider audience.

When setting up an online store, consider integrating it with your website for a seamless user experience. Platforms like Shopify, Etsy, or even WooCommerce for WordPress are popular choices for nonprofits looking to sell products. You can offer exclusive items to members or create limited-edition products tied to specific events or campaigns, increasing both the exclusivity and appeal.

Additionally, the store can serve as a gateway for your community to contribute to the society in a low-barrier way, allowing for casual supporters to make small purchases that still support your mission. Be mindful of the quality of your products and the ethical standards behind them—your online store should reflect the values of your organization while helping fund its activities. This is especially true when building community around medicines and experiences that invite us to prioritize the interconnectedness of all things.

Processing Payments

General Tips

Every state is going to have different rules on this depending on how you’re incorporated
LLC vs 501c3 will have different reporting requirements
Paypal, square, plaid, patreon, Stripe, e-transfer (canada) can also create a gofund me, cash donations are helpful - get a good old jar!
Can also have a crypto wallet. Zelle, venmo, cashapp - a QR code for all of these
Lots of websites or softwares have built in payment processing - check what integrations are available with your website software
Eventbrite / Meetup / Wix and other ticketing services also have integrations with different payment processing software
Also need to be compliant with all your tax requirements
Important to think about who on your team has access to these accounts, make sure they don't live on one person's private accounts.

Creating an External Bank Account

Need all people who are on your article of incorporation (for an LLC, it's the sole proprietor, if its a 501c3, it's all three members) to all be present to sign the paperwork for a bank
As you're ready to spend $1 on this org, you can start a club account, you don't even need an ein # and or any articles of incorporation even before you are ready to incorporate. And then a year later you can become an LLC or 501c3, you can easily count and tax that money because you can easily track it, you can back-date your reporting.
Some banks can be apprehensive about opening an account with an org with the word “psychedelic” in it - make sure the description for your orf is clear as well
- Ie; we’re an outreach group
- You can also make the official name of the org something different than the one that is advertised to the community - which would require it to have the same name as whatever you incorporated it under
Make sure you have all the documents needed and you are presenting yourself in a professional, legal way
Make sure that these people are trustworthy to have access to the account, to sign checks
Chase has been a good bank for psychedelic banking
Helpful to start a business account and route all of your transactions to be in one place versus it going through someone's private account first

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Last updated 4 days ago

Financial Strategy

Allocating Funds In a 501c3

Typically, in a 501c3, the ED would work with the president to create a budget. Then the board of directors takes the proposed budget and then approves it and that's accountability because the board doesn't get paid.

Paying for your domain name, your website, annual zoom account, other hosting software

If you're renting a space for an event

Paying facilitators (ie trained therapists for integration circles), paying speakers

Some events require materials (ie tie dye, cacao…etc)

Filing for 501c3 status

Fees for payment processing

advertising /postering

Merchandise

For 501c3 you can pay and executive director, but on the board is volunteer based

Accounting practices are NEEDED for 501c3
You can hire volunteer coordinators or other people to execute services (ie hosting specific events), administrative assistant

You cannot pay a volunteer - they have to be a volunteer or an employee, they can't do both. You can buy them food, you can reimburse them for costs.

Revenue Streams

Membership

Some societies have members that pay small monthly amounts in order to get access to certain things that others wouldn’t

Membership can be used as a source of income for the organizers and it is also a way to get people to commit to the cause and the community and then once they’re paying monthly or annual fees, they’re more dedicated to show up and be involved. There’s more accountability and attachment

How is a member different from an attendee

It's a transactional experience, could be cheaper than paying one off admissions to events - major reason is to save money
Versus being a member of a community that someone is engaging with in a vulnerable and deep way
So ask yourself what does a ‘member’ mean for your organization
Membership can also include steering and participating in the organization

What are the different tiers of membership?

There are three levels of participation:
- Casual/unpaid (commons-based peer production); Dating/partly paid (Commons/coop onboarding process); and Committed/paid (Commons and Coop full membership). Casual members have no responsibilities and Committed members review their work for inclusion, or not
- Dating members have ongoing responsibilities (pro-bono and care work) during a nine month trial period before mutual decisions are made about becoming Committed. They are peer mentored by the collective and continually evaluated.
- Committed members have ongoing responsibilities (pro-bono and care work), evaluated quarterly. Members unable to maintain these are downgraded from the Coop.

Can also be separated into different expertise, for example, growers, researchers, people focused on politics… etc.

These tiers can also have leadership roles for each of them

Some societies do applications for membership that require a certain amount of volunteering with org before someone can become a member - it's a way of screening.

Ask yourself; What is the value proposition that your society offers that justifies the energetic exchange of money?

You have to communicate this to your membership pool
Situation - problem - solution - victory
You can base your problem in the mental health industry and solution is community-based psychedelic healing and change public perspective. Victories; we;ve had this many meetings, we’ve been able to act these types of organizational structures
People want to be a part of the change and then they feel a sense of ownership since it aligns with their values - with this, people will continue their engagement

Different tiers can have access to various well-crafted experiences specifically for members. Or they can get takeaways ie; merch

Make sure not to offer anything illicit for members

Patreon is a helpful way to manage membership levels

Member pathway/onboarding:

You’re going to want an ever escalating series of keeping people engaged over time
Could include recurring events, group gatherings, political campaigns, financial goals or funding
Starts with someone joining: so their name and email address needs to be gathered somehow.
- Could be valuable to have people sign a membership form
- Then can add this persons info to square, can track their donations information.
- Then can download that member information info mailchimp which allows you to send texts or emails. Could even be automated, as soon as they enter they get an automated email that allows them to subscribe to the monthly newsletter and staying up to date
- This canvassing allows people to stay engaged and allows them to choose the level at which they engage.

Difference between donating members and volunteers

Can also use a CRM - Customer Relationship Management software

Online Store

An online store can be an excellent way to generate additional revenue for your psychedelic society, while also promoting your brand and values.

Processing Payments

General Tips

Every state is going to have different rules on this depending on how you’re incorporated

LLC vs 501c3 will have different reporting requirements

Paypal, square, plaid, patreon, Stripe, e-transfer (canada) can also create a gofund me, cash donations are helpful - get a good old jar!

Can also have a crypto wallet. Zelle, venmo, cashapp - a QR code for all of these

Lots of websites or softwares have built in payment processing - check what integrations are available with your website software

Eventbrite / Meetup / Wix and other ticketing services also have integrations with different payment processing software

Also need to be compliant with all your tax requirements

Important to think about who on your team has access to these accounts, make sure they don't live on one person's private accounts.

Creating an External Bank Account

Need all people who are on your article of incorporation (for an LLC, it's the sole proprietor, if its a 501c3, it's all three members) to all be present to sign the paperwork for a bank

As you're ready to spend $1 on this org, you can start a club account, you don't even need an ein # and or any articles of incorporation even before you are ready to incorporate. And then a year later you can become an LLC or 501c3, you can easily count and tax that money because you can easily track it, you can back-date your reporting.

Some banks can be apprehensive about opening an account with an org with the word “psychedelic” in it - make sure the description for your orf is clear as well

Ie; we’re an outreach group
You can also make the official name of the org something different than the one that is advertised to the community - which would require it to have the same name as whatever you incorporated it under

Make sure you have all the documents needed and you are presenting yourself in a professional, legal way

Make sure that these people are trustworthy to have access to the account, to sign checks

Chase has been a good bank for psychedelic banking

Helpful to start a business account and route all of your transactions to be in one place versus it going through someone's private account first