Reno’s New Revenue Scheme: Tax the Nonprofits and Call It “Safety”
You’ve got today and tomorrow to comment with the City of Reno.
Welcome to Reno, where even the charities that pick up the slack for the city might soon pay for the privilege. The latest target: local nonprofits — you know, the ones filling the gaps that government can’t manage, the ones feeding seniors, sheltering people, and fighting fires in the social safety net.
The City of Reno is proposing nonprofit registration regulations that could force nonprofits to pay business-license–style fees. According to a city announcement, officials are concerned that without formal registration, some nonprofits operate “under the radar,” avoiding fire code, zoning compatibility checks, and other safety reviews. So now they want to enforce an “ordinance governing this matter” — and possibly charge fees that nonprofits currently don’t pay.
Nonprofits typically get a pass on business licenses precisely because they’re not-for-profit. But Reno officials argue that unchecked nonprofits could be creating commercial-style risks or misusing space. Meanwhile, Mayor Hillary Schieve is asking nonprofits to have their voices in the room — while also asking them to pay to sit at the table.
At the State Level (Nevada): According to Nevada law, many nonprofits are exempt from the state business license if they have 501(c) status.
In Las Vegas / Clark County: Nonprofits are required to register as charitable organizations with the county business license office, but that’s different than being taxed like a for-profit business.
So… It’s not unheard of for local governments to require nonprofits to register for oversight. But Reno’s plan seems especially aggressive — moving from “just knowing who you are” to “charging you as if you’re a business.
So… is it a City of Reno Revenue Grab?
Nonprofits already do the hard, unglamorous work — now they might have to pay just to operate.
Charging these groups could undercut the very programs that help residents the city claims it cares about.
Nonprofits don’t have fat profit margins — they rely on donations, grants, and volunteers. Adding more tax-like fees could force some to reduce services.
If revenue’s the goal, Reno should raise it from for-profit businesses or development, not from the community helpers that most need to stay independent. How about a lobbyist fee?
What’s at stake?
The city’s credibility: if you say you value your nonprofits, don’t make them pay just to keep helping people.
Public trust: city council and staff need to explain why now, and why fees instead of enforcement or oversight.
Equity: taxing nonprofits disproportionately hurts small, community-based organizations — not the national charities with deep pockets.
Let’s have a real conversation.
Nonprofits: show up to the November virtual workshops. Use the survey. Speak out.
City Council: if you really care about safe, transparent, accountable nonprofits — don’t just force fees. Offer guidance, design a fair system, and make it support, not penalize, the non-profit sector.
Because if you drive the nonprofits out, guess who stands next in line to pay?
The residents.
The taxpayers.
The people.