The IRS is considering a proposal that would require nonprofits to disclose on their annual Form 990 whether any of their top officials have been convicted of certain financial or terrorism-related crimes within the past 10 years. While the proposal is still under consideration and no changes have been finalized, it could create new compliance responsibilities for charitable nonprofits.

According to reporting from CBS News, convictions that could fall under the proposed disclosure requirement include fraud, money laundering, securities fraud, tax evasion, theft, and providing material support to terrorists. The proposal would reportedly require organizations to disclose whether a covered conviction exists, but would not require them to identify which officer, director, or trustee was convicted.

Why This Matters

Although the number of nonprofits with leaders who have these types of convictions is likely to be very small, the proposal could create new administrative and financial burdens for organizations of all sizes. Nonprofits may need to conduct background checks on board members and other leaders to ensure that their Form 990 disclosures are accurate.

These additional compliance costs could be particularly challenging for smaller nonprofits with limited staff and financial resources. Nonprofit leaders may also have questions about how the IRS would use the information and how the proposal could affect organizations’ ability to recruit and retain board members.

The proposal has also raised concerns about freedom of association and potential First Amendment implications. Legal experts cited by CBS News questioned whether collecting this information from nonprofits is sufficiently connected to the IRS’s authority and warned that the requirement could create a chilling effect on participation in nonprofit organizations.

Diane Yentel, president and CEO of the National Council of Nonprofits, said nonprofits support reasonable regulation that helps maintain public trust, but called the proposal “a step too far” given the administration’s broader actions and rhetoric toward certain nonprofits. She also noted that complying with the requirement could take “precious time and resources” away from nonprofits’ work serving their communities.

What Happens Next?

Nothing has been finalized, and the proposal is one of at least two potential revisions to the Form 990 currently moving through the Treasury Department and IRS.

As additional details become available, nonprofits should watch for information about which individuals and convictions would be covered, what documentation organizations may need to maintain, and how the IRS would enforce the new disclosure requirement.

CNE Will Keep You Informed

CNE will continue to monitor developments alongside our national advocacy partners and share updates that are most relevant to Virginia’s nonprofit community. We encourage nonprofit leaders to stay informed as the IRS and Treasury Department consider potential changes and as more information becomes available.

Each year on August 17, National Nonprofit Day gives us an opportunity to pause and recognize the essential role nonprofit organizations play in our communities. But this day should be about more than appreciation alone. It should also be a moment to acknowledge the many roles nonprofits play as community builders, problem-solvers, employers, advocates, conveners, and trusted partners in building a stronger future.

At the CNE), we know that when nonprofits are strong, communities are stronger. Across Virginia, nonprofit organizations are meeting needs that are both urgent and enduring. They are feeding families, expanding access to healthcare, creating opportunities for young people, supporting artists and educators, protecting the environment, strengthening neighborhoods, and advocating for systems that work better for everyone. They do this work every day with deep commitment, creativity, and care—in a moment that demands more of them than ever.

Nonprofits are operating in an environment shaped by economic uncertainty, workforce challenges, rising community need, evolving public policy, and increasing pressure to do more with limited resources. Yet communities continue to turn to nonprofit organizations for leadership, stability, and hope. Nonprofits are often among the first to see emerging needs and among the last to walk away from them. They stay rooted in their communities, listening, adapting, collaborating, and building bridges across differences. In doing so, they help ensure our communities are not only responsive in times of crisis, but more connected, equitable, and resilient over time.

National Nonprofit Day is also a reminder that the health of the nonprofit sector does not rest on nonprofits alone. A strong sector requires investment, partnership, and shared responsibility. It requires funders who support capacity as well as programs, policymakers who remove barriers to impact, businesses and institutions that see nonprofits as essential partners, and communities that recognize nonprofit effectiveness depends on the systems, resources, and relationships surrounding it.

For 20 years, CNE has worked alongside nonprofits across Virginia as a champion, learning partner, and advisor—helping organizations strengthen leadership, governance, strategy, advocacy, and long-term sustainability. We believe healthy nonprofits are vital to equitable, thriving, and just communities, and we know that building a stronger sector takes more than one-day recognition. It takes sustained commitment to learning, collaboration, and investing in the people and organizations doing the work.

National Nonprofit Day gives us a chance to celebrate the extraordinary contributions of nonprofit organizations. It should also challenge us to ask what it would look like to truly support them—not only with gratitude, but with action.

• What would it look like to invest in nonprofit staff and leaders as the workforce our communities depend on?
• What would it look like to fund infrastructure, leadership development, and organizational health as seriously as we fund programs?
• What would it look like to create public policy that recognizes nonprofits as critical partners in meeting community needs?
• What would it look like to move from admiration of nonprofit work to meaningful, long-term support for nonprofit impact?

These are the questions that matter—not just on August 17, but all year long.

This National Nonprofit Day, we celebrate the organizations, leaders, staff, board members, volunteers, donors, and advocates whose dedication strengthens communities across Virginia every day. For 20 years, CNE has been proud to stand alongside Virginia’s nonprofit sector as a champion, learning partner, and advisor, and we remain committed to helping nonprofits thrive for years to come. Join us in celebrating National Nonprofit Day and the remarkable impact of our sector, because one thing is clear: Nonprofits get it done in Virginia.

Congress is beginning to outline what could be included in a third tax reconciliation bill, and nonprofits should stay tuned as the process develops. While it’s still early on in the process, these conversations have the potential to shape future tax and spending policies that affect charitable nonprofits and the communities they serve.

Although lawmakers have not yet released detailed legislative information, early discussions have focused on issues such as defense spending, agricultural funding, and election-related grants similar to portions of the SAVE Act. At this stage, many questions remain unanswered, and priorities are likely to evolve as conversations continue.

Why This Matters

The initial budget resolution will provide a blueprint for tax reconciliation with instructions for key congressional committees that will use it to begin drafting legislation. As a result, much of the substance that could affect nonprofits would emerge later in the process.

One of the key developments nonprofits should watch for now is whether the House Ways and Means Committee is instructed to draft legislation as part of the reconciliation process. Because this committee has jurisdiction over federal tax policy, its involvement could indicate that future proposals may include provisions capable of impacting charitable organizations.

What Happens Next?

The House is expected to consider a budget resolution in the coming days. Once it is released, organizations will have a clearer understanding of which committees have been tasked with developing legislation and whether tax policy affecting the nonprofit sector is likely to be part of the discussion.

It is important to remember that this represents only the beginning of what is often a lengthy legislative process. Any proposal would still undergo committee work, negotiations, and additional votes before becoming law.

CNE Will Keep You Informed

As Congress continues its work, CNE will monitor developments alongside our national advocacy partners and share updates that are most relevant to Virginia’s nonprofit community. We encourage nonprofit leaders to stay engaged as additional information becomes available and potential impacts on the sector become clearer.

On May 29, 2026, the Office of Management and Budget (OMB) proposed sweeping changes to overhaul federal grantmaking. CNE joins the National Council of Nonprofits in opposing the proposed changes, which would create significant financial risks and instability for nonprofit grantees, jeopardizing community access to critical services. Ultimately, the proposed rule will harm the people and communities that rely on nonprofits and other federal grantees and the essential services they provide.

You can help oppose the OMB’s proposed changes to federal grantmaking by:

Submitting a public comment to OMB by the July 13 deadline in opposition to the proposed regulation (use NCN’s resources to submit a public comment).

Urging your members of Congress to work to secure bipartisan language on any legislative package moving this year to block OMB from implementing the regulation or any similar regulation.

Urging Republican members of Congress to quietly reach out to the White House (not OMB) to urge the White House to delay the implementation of the regulation and work with policymakers and key stakeholders to address critical issues with the rule.

Thank you for standing with the nonprofit sector in opposing these proposed changes to federal grantmaking.

Each year, millions of Americans donate to and volunteer with the charitable nonprofits making a difference in their communities. Many turn to online fundraising platforms to give—but many of these platforms operate without nonprofit consent and in other ways counter to the needs of nonprofit organizations.

To guide this work moving forward, the National Council of Nonprofits (NCN) network urges that the following principles serve as the foundation for any relationship between online fundraising platforms, donors, and nonprofits:

Nonprofit Consent: Nonprofits must have the power and agency to decide for themselves how and when to engage with online fundraising platforms before they solicit or collect donations.

Transparency: Donors must have the power and information they need to decide whether to make a donation through an online fundraising platform.

Partnership: Online fundraising platforms must recognize nonprofits as valued, equal partners.

Accountability: Online fundraising platforms must be accountable to nonprofits, donors, the public, and the appropriate regulators.

NCN invites nonprofits nationwide to urge online fundraising platforms to operate with nonprofit consent, transparency, partnership, and accountability. Make your voices heard!

You can take action today by:

• Endorsing the principles for ethical online fundraising platforms.
• Sharing the principles with other nonprofits in your community and on social media.
• Urging online fundraising platforms to operate ethically.

Get Involved

Read the Principles

The Center for Nonprofit Excellence (CNE) is proud to announce the appointment of four distinguished new members to its Board of Directors. These accomplished leaders bring a wealth of experience in nonprofit management, community development, financial services, architecture, and civic engagement — strengthening CNE’s capacity to serve the nonprofit sector across Virginia.

Matt Brandon

Director, Board of Directors, The Center for Nonprofit Excellence

Matt Brandon is a seasoned nonprofit and higher education leader with more than 30 years of experience in alumni engagement, advancement, and philanthropy. He currently leads the William & Mary Alumni Association (WMAA), guiding its board and staff in serving more than 110,000 alumni worldwide, with a focus on global alumni engagement, volunteer leadership, lifelong learning, and alumni business services.

Matt began his career in alumni relations at WMAA and has held senior leadership roles at the University of Virginia, the University of Lynchburg, and the Ridley Scholarship Fund. He earned his bachelor’s degree in economics from the College of William & Mary and holds a Master of Science in journalism and public relations from Ohio University.

Corey Clayborne

Director, Board of Directors, The Center for Nonprofit Excellence

Corey Clayborne is a senior leader in the architecture and construction professions, currently serving as President of the Construction Industry Roundtable (CIRT), a network of leading design and construction firms in the U.S. dedicated to inspiring innovation and advancing a safe, sustainable quality of life for the future.

Prior to CIRT, Corey served as Senior Vice President, Knowledge & Practice, at the American Institute of Architects (AIA), providing strategic leadership for professional education, climate action, design excellence, equity, research, and member engagement. Before that, he served as Executive Vice President of AIA Virginia, where he led advocacy, education, and member services initiatives.

Corey also serves as an elected Planning Commissioner for Albemarle County, representing the Rivanna District, and was elected Chair of the Planning Commission in 2023.

He is active in civic and professional leadership, serving on the boards of Lead Virginia and ACE Mentor Program of America, and on the advisory board for the School of Architecture at Virginia Tech. A frequent speaker on design excellence and equity in architecture, Corey is a graduate of Virginia Tech and Liberty University.

Dr. Elle Harris

Director, Board of Directors, The Center for Nonprofit Excellence

Dr. Elle Harris is a nonprofit leader, counselor, and advocate dedicated to empowering women and girls. A native of Portsmouth, Virginia, she brings nearly two decades of experience in human services and counseling, with expertise spanning direct care, agency management, operations, and organizational restructuring.

Dr. Harris is the founder of the WWW Group and has served in numerous leadership roles across her community, including board and commission appointments in the City of Suffolk. Her academic research focuses on imposter syndrome and feelings of inadequacy among women nonprofit leaders, reflecting her deep commitment to strengthening women’s leadership in the sector.

She holds degrees from Virginia State University, Norfolk State University, Purdue University Global, and earned her Ph.D. in Counseling and Human Services from Capella University. Her service has been recognized with a Gold Level Presidential Volunteer Service Award, a Women of Distinction Award from the YWCA of South Hampton Roads, and a Top Forty Under 40 honor from Inside Business.

Simeon Harris

Director, Board of Directors, The Center for Nonprofit Excellence

Simeon Harris brings 18 years of financial industry experience and a member-centric approach to problem-solving that has defined his career as a Commercial Banking Officer at TowneBank. His consultative approach helps partners understand their short-, mid-, and long-term financial goals to achieve sustainability and smart growth.

A graduate of Old Dominion University with a bachelor’s degree in marketing e-commerce, Simeon is also a member of Alpha Phi Alpha Fraternity Incorporated. He actively serves on the boards of UTURN, the Lewis Ginter Botanical Garden, and ChildSavers.

RICHMOND, VA — Governor Abigail Spanberger has signed House Bill 353, sponsored by Delegate Katrina Callsen, into law, expanding access to affordable health benefit options for nonprofit employees across the Commonwealth.

The legislation allows 501(c)(3) organizations to sponsor health benefits consortia, enabling charitable nonprofits to band together to pool risk, strengthen purchasing power, and offer more affordable, high-quality health coverage to their employees. Small and mid-sized nonprofits, in particular, often face significant challenges providing competitive benefits due to rising insurance costs and limited bargaining power.

The Center for Nonprofit Excellence (CNE) – Virginia, alongside partners including the Dan River Nonprofit Network, advocated for the passage of HB353 as part of a broader effort to strengthen the nonprofit workforce across the Commonwealth.

Virginia’s nonprofit sector plays a vital role in communities statewide, employing nearly 400,000 people and delivering essential services that support families, strengthen local economies, and improve quality of life. Expanding eligibility for health benefits consortia is expected to improve workforce stability, support recruitment and retention, and help nonprofits remain competitive employers.

“HB353 is a practical, forward-looking solution that strengthens the nonprofit workforce and the communities they serve,” said Dr. Mariane Doyle, Executive Director and CEO of the Center for Nonprofit Excellence – Virginia. “By allowing 501(c)(3) organizations to sponsor health benefits consortia, Virginia is giving nonprofits a meaningful pathway to provide more affordable and sustainable health coverage for their employees.”

With the Governor’s signature, HB353 will take effect July 1, 2026, marking a significant step forward in strengthening the nonprofit workforce and expanding access to affordable health coverage across Virginia.

For more information, please contact:

Dr. Mariane Doyle

mdoyle@thecne.org

RICHMOND, VA — House Bill 353 (HB 353), legislation that would expand access to health benefit plans for Virginia’s nonprofit workforce, passed the House Labor and Commerce Subcommittee #1 with a unanimous vote (9–0) on Tuesday, January 27th, marking a significant early step in the 2026 General Assembly session.

On Friday, HB 353 achieved another major milestone: the bill passed unanimously through the Virginia Senate, demonstrating strong bipartisan support for expanding nonprofits’ ability to offer affordable, high-quality health coverage to their employees.

HB 353, sponsored by Katrina Callsen (D), proposes a targeted amendment to § 38.2-3431 of the Code of Virginia to broaden the types of nonprofit organizations that may serve as a “sponsoring association” for a benefits consortium that offers health benefit plans to members. Under current law, sponsoring associations may operate only as § 501(c)(5) or § 501(c)(6) entities. This bill would add § 501(c)(3) charitable organizations to that list, enabling the Center for Nonprofit Excellence to pool resources and offer quality, affordable health coverage for their staff and members.

Supporters of HB 353 emphasize the impact this technical change could have on the nonprofit sector. Many nonprofits — especially small and mid-sized organizations — often struggle to provide competitive health benefits due to limited bargaining power in insurance markets. Expanding consortium eligibility to include 501(c)(3) entities could extend group health plan opportunities to thousands of nonprofit employees across Virginia, strengthening recruitment and retention and enhancing workforce stability.

“Virginia’s nonprofit sector employs more than 500,000 people and serves as a backbone of our communities,” said Dr. Mariane Asad Doyle, Executive Director and CEO of the Center for Nonprofit Excellence (CNE). “This targeted amendment will expand access to affordable health coverage for nonprofit employees across the Commonwealth. CNE is proud to advocate for policy solutions that strengthen the nonprofit workforce and the communities they serve.”

In the days leading up to the subcommittee vote, nonprofit leaders, staff, and advocates were encouraged to share testimony illustrating why HB 353 matters and how expanded eligibility could benefit their organizations and the broader community.

With its unanimous passage in both the House and the Senate, HB 353 now continues moving through the legislative process to the Governor’s desk for final approval.

For more information, please contact Dr. Mariane Asad Doyle at mdoyle@thecne.org