Marijuana Business Magazine - April 2018

before his removal from the NCIA board. After he was kicked off the NCIA board, Kampia lambasted the organization as “a broken institution.” His primary com- plaint: NCIA should be run more democratically than how Smith operates it, allowing the members to have more of a voice. “Aaron runs it like a dictatorship,”Kampia said in an interview. “Structurally, he’s not respecting the asso- ciation when he runs it like that.” Scott Van Rixel, co-founder of Bhang Chocolate, an edibles company in Oak- land, California, said his company was a major financial fundraiser for NCIA and one of its original members. But Van Rixel is no longer on the board and no longer a member. Van Rixel declined to go into specif- ics about why he cut ties with NCIA, saying he’s disappointed to no longer be involved with the organization. “We really had high hopes for what NCIA was going to accomplish,” Van Rixel said. “We joined NCIA when we did as one of the founding members because we really believed in the goals that NCIA was moving toward: fair banking and fair taxation.” Smith, for his part, brushes off much of the criticism and defends his tenure at NCIA. “Like most people, I don’t find criticism that isn’t constructive or rooted in facts to be particularly useful,” he said. “But I do welcome critical feedback on how NCIA can improve from anyone.” Smith said he takes constructive criti- cism seriously, especially if it’s coming from an NCIA member. “My approach is to attempt to validate any concerns by asking for the advice and feedback of oth- ers to ensure that what is being said is not just coming from an outlier,” he added. In that regard, Smith called Khalatbari a friend but labeled him an outlier on the D espite some high-profile criti- cisms and turmoil, the National Cannabis Industry Association posted a banner year in 2017 from a financial and membership standpoint — which indicates the trade group remains in a solid position. Aaron Smith, NCIA’s executive direc- tor, provided Marijuana Business Mag- azine with a document detailing the organization's financial numbers. Smith oversees 17 employees, and his current salary is $128,000, which he considers low for a director of a 501(c)6 trade association. According to the American Society of Association Execu- tives, the median CEO salary for trade associations in 2016 was $200,000. In 2016, Smith was paid $112,000. According to NCIA, gross revenue for 2017 totaled just over $3million, up 70% from2016, allowing the nonprofit group to increase its budget for lobbying and public affairs by more than 60%. Smith said membership rolls increased by 40% during 2017. NCIA had 1,530members at the start of 2018. At right are other key figures. 2016 2017 % change Total Revenue $1,798,554 $3,050,979 70% Total Expenses $1,819,051 $2,763,499 52% Policy & Government Relations $518,708 $870,767 68% Membership Services, Events & Business Development $544,749 $906,119 66% Administration & Overhead $455,289 $576,733 27% Payroll Taxes & Employee Benefits (Health, 401K, etc.) $177,759 $261,079 47% Press Relations & Marketing $122,545 $148,801 21% Source: NCIA NCIA by the Numbers 2017 Expenses by Type Source: NCIA 33% 32% 21% 9% 5% Membership Services, Events, & Business Development Administration & Overhead Public Affairs Press Relations & Marketing Payroll Taxes & Employee Benefits Scott Van Rixel, co- founder of Bhang Chocolate, said his company was a major financial fundraiser for NCIA and one of its original members. April 2018 • Marijuana Business Magazine • 55