When operating a nonprofit, compliance with federal and state regulations is essential, but local ordinances can be just as crucial. Overlooking these local requirements could result in fines, legal complications, or disruptions in your nonprofit’s mission-driven work. Here are three areas where local ordinances often impact nonprofits:
1. Zoning Laws
If your nonprofit has a physical location, it’s important to understand local zoning laws. These regulations dictate what types of activities are allowed in different parts of your city or county. For example, if your nonprofit operates a community center, office, or food distribution site, the local government may limit the type of services or programs you can offer in certain areas.
I know this from firsthand experience. Several years ago my nonprofit nature center decided to open a nature preschool. We started with a part-time program that required no licensing, and all was well. However, when we decided to move to a full-time preschool model and discovered that, since the nature center was zoned as “Open Space” and businesses weren’t allowed in Open Space, we were technically not allowed to have a full-time preschool. Thankfully, the nature center was and is a good partner with the City, and the city council approved a zoning variance to allow the existence of the full-time preschool. This happened within a day of the first day of preschool. It was a happy ending, but the wait was a little too close for comfort.
Please research local zoning restrictions to ensure your organization can legally conduct its operations, whether current or future. Planning new programs or moving into a space without verifying compliance could lead to hefty penalties or even eviction. Always check whether the zoning classification aligns with your long-term goals, especially if you plan to expand or change your programs in the future.
2. Permits and Licenses
Many local governments require permits for certain nonprofit activities, especially if you're hosting large-scale events or engaging in public fundraising. For example, outdoor fundraisers, festivals, and events may require permits for things like noise levels, food service, or street closures. Localities often have distinct rules about what types of events need permits and the application process can vary greatly from place to place.
How many of us have heard of an event that had to be canceled because the organizers hadn’t procured the current permits? How many have dealt with a situation that wouldn’t have been an issue if we had discussed all the needs of the event with the host facility? Knowing your spaces and their requirements is crucial for success.
Additionally, your organization may need business licenses to operate, even if it’s nonprofit. Be sure to review the requirements in your municipality or county to avoid delays or cancellations of key activities.
3. Employment Regulations
While federal and state laws set standards for employment practices, local ordinances often include their own rules, particularly when it comes to worker protections. Local regulations can cover things like minimum wage, paid sick leave, worker’s compensation, and workplace safety standards. These rules can vary significantly from state and federal requirements, so it's important to stay up-to-date on local labor laws.
By ensuring your nonprofit complies with local employment regulations, you not only avoid legal penalties but also create a fair and safe workplace for your employees and volunteers.
Why Compliance Matters
Navigating local ordinances can be complex, but understanding and complying with them is crucial for the long-term success of your nonprofit. A proactive approach to compliance will help your organization avoid legal challenges, protect your employees, and allow you to focus on advancing your mission.
Need help ensuring your nonprofit stays compliant with local ordinances? Reach out to RootSpark Consulting for expert guidance on navigating the legal landscape and ensuring your organization thrives.
Amber Parker, Principal Consultant, RootSpark Consulting. Helping nonprofits grow stronger with strategic planning, organizational assessments, and governance support.