Nonprofit Organization Engagement Process
The City is inviting community input on recommendations and potential impacts of amending and enforcing an ordinance regulating nonprofit organization (“NPO”) registration. City staff held three virtual workshops to collect feedback. The presentation is linked for reference and provides additional detail regarding the topics to be discussed.
Virtual Meeting Dates
Background
NPOs are often exempt from business licensure because they are not operating for profit, and their purpose is typically to benefit society or a specific cause. Much like the State, the City has provisions exempting nonprofits from the requirements of getting licensed. Specifically, pursuant to RMC Sec. 4.04.007, “the terms "business" or "doing business" do not include:
- Activities conducted by, or for the exclusive benefit of, organizations that are certified as tax exempt entities pursuant to 26 U.S.C. Section 501(c), including but not limited to organizations operated for religious, charitable, scientific, literary, educational, or fraternal purposes.”
Additionally, per RMC Sec. 4.04.008, “charitable organization means an organization which:
- Is exempt from federal income tax pursuant to 26 U.S.C. 501(c) of the United States Internal Revenue Code, and
- Has received from the Nevada Secretary of State a certificate of nonprofit corporation, association or society.”
However, historically, the registration and/or licensure of NPOs has been a topic of discussion in terms of city planning and public safety. Since NPOs are exempt from licensing, the Planning Division may not always have knowledge of an NPO’s existence and could potentially approve an incompatible use nearby. Similarly, applicable City staff is not always aware of the existence of these entities so they aren’t necessarily inspected and/or reviewed like a commercial business would be.
At the June 11, 2025, City Council meeting (Item C.3), staff presented information on the current exemptions for NPO licensing, approaches used by other jurisdictions, and the impacts of amending and enforcing an ordinance governing this matter. Ultimately, Council directed staff to conduct community outreach and return with a draft ordinance.
Options for Submitting Feedback
