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Reno Considers Registry Fees for Non-Profits to Strengthen Oversight

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  Published in Business and Finance on Thursday, November 13th 2025 at 16:23 GMT by KOLO TV

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Reno Considers Registry Fees for Non‑Profits to Strengthen Oversight

In an effort to enhance transparency and accountability among the city’s rapidly growing nonprofit sector, the City of Reno is exploring the possibility of levying registry fees on charitable organizations. The proposal, unveiled in a recent article by KoloTV, seeks to create a more robust oversight framework that would require nonprofits to pay a nominal annual fee in exchange for a streamlined registration process, access to city‑run resources, and heightened public trust. The initiative, still in the early stages of deliberation, has sparked a spirited debate among local civic leaders, charitable groups, and residents.

The Current Landscape of Non‑Profit Activity in Reno

Reno’s nonprofit community has exploded over the past decade, fueled in part by the city’s reputation as a haven for social entrepreneurship and community‑driven initiatives. According to the Reno Nonprofit Association (RNOA), there are more than 300 active charities registered in the city, ranging from small faith‑based ministries to large, multimillion‑dollar humanitarian organizations.

While Nevada law mandates that all charitable entities must register with the state and file an annual Form 510 with the Nevada Secretary of State, the city’s oversight mechanisms are relatively limited. Nonprofits are currently required to disclose their financials only to the state and, in some cases, to the federal government via Form 990. The city itself has no formal audit or compliance program for the local sector, leaving residents and donors with little assurance that their contributions are being used as intended.

What the Proposed Fee Would Entail

The proposed fee structure is designed to be modest, with a sliding scale based on the nonprofit’s annual revenue. The City Council draft ordinance suggests the following tiers:

Nonprofits would be required to pay the fee within 60 days of the fiscal year’s end and could renew their registration at any time thereafter. In return for the fee, organizations would receive:

• Priority access to city resources (e.g., discounted use of public spaces, free marketing services, and expedited permit approvals).
• Annual compliance briefings hosted by the city’s Office of Community Affairs.
• Inclusion in a publicly accessible database that provides basic financial and operational information about each nonprofit, similar to the Nevada Charitable Organizations Database.

The City Council’s preliminary budget estimate indicates that the fees would generate roughly $250,000 annually, a figure that could help offset costs associated with the new oversight program.

Why Reno Wants to Take a Stronger Regulatory Role

City officials argue that the nonprofit sector is a critical pillar of Reno’s social fabric, but they also warn that the lack of oversight has led to instances of mismanagement and, in rare cases, fraud. In a statement on the Reno Chamber of Commerce website, City Councilmember Lisa McGowan explained that “the goal is to protect the public and donors by ensuring that nonprofits adhere to sound financial practices.”

The proposed fee would be used to fund several key initiatives:

1. Compliance Training – A series of workshops on accounting, governance, and state reporting requirements.
2. Data Analytics – Development of an online dashboard that tracks nonprofits’ financial health and compliance status.
3. Audit Support – Provision of grant‑based assistance for nonprofits that wish to undergo external audits.

The ordinance also includes a provision that allows the city to require nonprofits to submit a Financial Integrity Report once a year if they receive more than $100,000 in public funding or in-kind donations from the city.

Voices on Both Sides

Supporters: Many nonprofit leaders see the fee as a small price to pay for greater legitimacy. “We’ve already been dealing with a lot of paperwork for the state, and the city’s oversight could make it easier to secure grants and partnership opportunities,” says Angela Martinez, Executive Director of Hope for Children, a local youth outreach program.

Critics: Some small charities fear that the fee could become a barrier to entry. “We’re a volunteer‑run organization with a $30,000 budget. Even $25 feels like a pinch,” says Jamal Brown, volunteer coordinator for Urban Green Initiative. Others argue that the city should instead focus on improving existing registration processes rather than adding another layer of bureaucracy.

The Reno Nonprofit Association is hosting a town hall on Thursday, November 22, to gauge community sentiment. The association’s website links to a Google Form where members can submit written comments or sign petitions either in support of or against the ordinance.

Legal Context and Potential Obstacles

Nevada’s Charitable Organizations Act already requires nonprofits to file an annual registration and maintain certain records. However, the state does not mandate a fee that would specifically fund local oversight. The City Council’s proposal will need to be reconciled with state law, and any conflict could lead to a legal challenge from the Nevada Nonprofit Alliance (NNA), which represents nonprofits statewide. The NNA’s website contains a policy brief titled “Nonprofit Taxation and Oversight in Nevada,” which outlines concerns about duplication of state and local reporting requirements.

Additionally, the ordinance must be vetted by the city’s Legal Affairs Office to ensure that it does not infringe upon the First Amendment rights of charitable organizations. A draft of the ordinance is available for public review on the City of Reno’s Official City Ordinances portal, where citizens can comment within a 30‑day window.

The Road Ahead

If the ordinance passes the Council’s initial vote, the next steps would be:

1. Public Comment Period – 30 days during which nonprofits and citizens can submit feedback.
2. Revision and Adoption – Council to amend the draft based on community input.
3. Implementation – City officials would develop an online portal for fee payment and registration.
4. Ongoing Oversight – Establishment of a Nonprofit Compliance Committee within the Office of Community Affairs.

The City Council is expected to vote on the ordinance during the May 2026 session, with a public hearing slated for March 2026. Meanwhile, the KoloTV article’s accompanying link to the city’s City Manager’s Office provides a downloadable PDF of the ordinance draft, allowing stakeholders to scrutinize the language and propose changes.

Bottom Line

Reno’s proposal to levy registry fees on nonprofits is a bold move aimed at bolstering accountability and public trust. While the initiative promises tangible benefits—such as streamlined access to city resources and a new compliance infrastructure—concerns about added administrative burden and the potential stifling of grassroots organizations are equally compelling. As the debate unfolds, the city’s next steps will hinge on balancing the need for oversight with the mission of a vibrant nonprofit community. Stakeholders are encouraged to review the full ordinance draft on the City of Reno website and participate in the upcoming town hall to shape the future of nonprofit regulation in the region.