A Durango children’s nonprofit was supposed to be the beneficiary of a fundraiser but instead has scored big because of a fine imposed on a local pot shop.

Rocky Mountain High, a marijuana dispensary, held a raffle in May to benefit La Plata Youth Services, a group that works with at-risk youth. But the raffle was closed down after the La Plata County Sheriff’s Office and the Durango Police Department notified the city’s code enforcement department about the raffle, according to city documents.

The company was selling $5 raffle tickets for the chance to win an ounce of marijuana, said Steve Brittain, former executive director of La Plata Youth Services.

However, the company didn’t consult Brittain before holding the raffle, and when a Rocky Mountain High employee called to give the nonprofit $500, he turned it down.

“I couldn’t support it, and neither would my board,” he said.

City code enforcement initially alleged the company violated four local and state laws, including operating a raffle without a license and local advertising laws. The law prohibits misleading, deceptive or false ads that appeal to minors.

“One of the primary issues we had was appealing to minors,” said City Attorney Dirk Nelson.

In September, the Local Licensing Authority levied a $1,000 fine on the business as part of an agreement that eliminated the need for a hearing in front of the board.

As part of the agreement, Rocky Mountain High business agreed not to contest violating advertising laws, according the city’s public record of the meeting.

City Manager Ron LeBlanc suggested transferring the fine to La Plata Youth Services, and the board unanimously approved the re-appropriation.

“I think it would be a show of good faith of the community to let them benefit,” he said at the meeting.

This week, Mayor Dean Brookie presented the money to the nonprofit’s new executive director, Katy Pepinsky.

A representative of Rocky Mountain High was not present at the meeting, and the company was not aware that its fine went to the nonprofit, said Jordan Smith, the senior regional director of operations for the company. But she said the gift did honor the company’s intentions.

“They did the right thing by contributing to what we were trying to accomplish,” she said.

Smith also said someone with Rocky Mountain High had spoken with a representative at La Plata Youth Services before the raffle was held.

“We were wanting to give back to the community,” she said.

The company, however, never contacted Brittain to talk about the raffle and an appropriate way to raise funds, Brittain said.

La Plata Youth Services has accepted money from Durango Organics, another marijuana retailer. Initially, Durango Organics wished to sponsor art made by La Plata Youth Services students at a public art show. But Brittain worked with his board to determine a more appropriate way for the company to make a donation.

The board decided the money from Durango Organics should support marijuana-use prevention and intervention classes for teens, he said.

“Our goal is to get them not to use until they are older. ... If you are a chronic user at 14, you are going to damage your brain,” Brittain said.

The organization also receives money generated by state taxes on marijuana to help support programming.

mshinn@durangoherald.com