Legislators need to hear directly from nonprofit leaders, staff, and advocates about why HB 353 matters. Personal stories and on-the-ground perspectives are critical in demonstrating the real-world impact this bill could have on nonprofit workers’ access to affordable health benefits across Virginia.
If your nonprofit organization has struggled to offer health coverage—or if expanded consortium eligibility would strengthen your ability to recruit and retain staff—we encourage you to share your testimony in support of HB 353. Your experience can help lawmakers understand why this technical change is so important for the nonprofit sector and the communities we serve.
The nonprofit sector needs your voice.
You can express your support for HB 353 tomorrow, January 27th, by:
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Sharing testimony virtually or in-person between 1 and 3 pm, or
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Submitting written public comment
To help you prepare, we encourage you to review our Guide for Contacting Virginia State Legislators, available on our website: Guide for Contacting Virginia State Legislators
Together, we can help ensure nonprofit voices are heard.
What the Bill Does
HB353 proposes a targeted amendment to §38.2-3431 of the Code of Virginia that would expand the types of nonprofit entities eligible to serve as a “sponsoring association” for a benefits consortium, thereby increasing access to health benefit plans for members of qualifying associations throughout the Commonwealth.
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Current Virginia law allows a sponsoring association of a benefits consortium to operate only under §501(c)(5) or §501(c)(6) of the Internal Revenue Code.
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HB353 adds §501(c)(3) to the list, allowing charitable nonprofit organizations to serve as sponsoring associations for benefits consortiums.
As a result, nonprofits with charitable missions would be eligible to operate benefits consortiums for their members.
Why It Matters
1. Expands Access to Health Benefits
Allowing 501(c)(3) organizations into the consortium space could extend group health plan opportunities to thousands of nonprofit employees who often lack access to affordable coverage options. Charitable organizations, particularly small and mid-sized ones, frequently struggle to offer competitive benefits because of limited bargaining power in the insurance market. This impacts their ability to retain their staff and provides essential services to the community.
2. Supports the Nonprofit Workforce
Virginia’s nonprofit sector is a major employer. Enlarging consortium eligibility could help stabilize recruitment and retention by making it easier for nonprofits to pool risk and reduce premiums.
HB353 is a technical change with significant implications for nonprofit workers’ access to affordable health benefits. By expanding eligibility to 501(c)(3) organizations, the Commonwealth would enable more nonprofits to band together to provide health coverage, strengthening Virginia’s service-providing infrastructure and workforce resilience.