We’re honored to be recognized in Resolution HJ748 and grateful to Delegate Katrina Callsen and the General Assembly for celebrating CNE’s impact across Virginia’s nonprofit sector. Click to read the full Resolution. View additional photos and videos on our LinkedIn page.
Join a webinar on the Budget Reconciliation and the Charitable Sector, tomorrow, May 29 from 2 – 3 pm. This session is being sponsored by the Council on Foundations, Independent Sector, National Council on Nonprofits, and the United Philanthropy Forum (UPF).
On May 22, 2025, the U.S. House of Representatives narrowly passed the budget reconciliation bill (H.R. 1) by a 215–214 vote. While two provisions that would have significantly affected the nonprofit sector were ultimately excluded—one that would have allowed the IRS to revoke tax-exempt status from organizations labeled as “terrorist supporting organizations,” and another that would have treated income from licensing a nonprofit’s name or logo as Unrelated Business Taxable Income (UBIT)—several provisions with far-reaching local impact remain in the bill.
The bill introduces a tiered excise tax on private foundation investment income, ranging from 1.39% for smaller foundations to 10% for those with over $5 billion in assets. It also imposes a 1% minimum floor on corporate charitable deductions, which could reduce philanthropic contributions overall.
In Virginia alone, the proposed increase in the excise tax is projected to reduce available charitable dollars by over $14 million. This translates to fewer resources for nonprofits working across sectors like education, health care, the arts, environmental protection, and social services.
On a more positive note, the bill temporarily reinstates a universal charitable deduction for non-itemizers: $150 for individuals and $300 for joint filers, applicable for tax years 2025 through 2028.
The bill also includes stricter Medicaid work requirements, mandating that able-bodied adults work at least 80 hours per month to maintain coverage, beginning in late 2026. These changes could lead to widespread coverage losses, especially for low-income individuals facing barriers to steady employment.
Health and human service organizations are especially concerned about these provisions, which could shift greater responsibility onto nonprofits to address the gaps in coverage and care.
The bill now heads to the U.S. Senate, where changes are likely before any final vote. Nonprofits, funders, and community advocates should stay informed and engaged as the legislative process continues.
Thank you to the National Council of Nonprofits (NCN) for the following news, updates, and resources.
The House of Representatives voted Thursday to approve the “One Big Beautiful Bill Act,” a major tax bill that Republicans hope to enact by summer. The bill now heads to the Senate, where several changes to the bill are expected. Read NCN’s updated analysis of the revised bill.
Nonprofit organizations should contact their members of Congress – especially Republicans – to urge them to protect the nonprofit sector in the tax bill.
Your advocacy works! Nonprofit organizations successfully advocated for congressional leaders to remove a provision that would have granted unprecedented authority to the Executive Branch to revoke nonprofit tax-exempt status without due process. There is more work to do. The current bill still includes several provisions that could significantly harm nonprofit organizations and the people they serve.
Sign a National Letter
Urge Congress to remove harmful provisions in the tax bill targeting nonprofit organizations. This national letter is led by National Council of Nonprofits, Council on Foundations, Independent Sector, and United Philanthropy Forum.
Contact Your Members of Congress
Urge them to protect nonprofits and their ability to serve their communities in the tax package.
Chart of implications of specific sections in the draft tax legislation including revoked items.
Analysis of the draft tax legislation and suggested actions for nonprofit advocates.
Overview of how and why nonprofits should be protected in the tax reconciliation process.
The latest findings from the Social Impact Staff Retention project are here! If you’re short on time, check out the 2025 infographic for a quick summary. Learn why nonprofit staff look to leave their current roles and why they stay.
This project is fueled by a deep commitment to the nonprofit sector—helping decision-makers understand what practitioners are experiencing so they can lead more effectively.
You can also hear more insights from the project in recent interviews on:
President Trump’s newly released Fiscal Year (FY) 2026 “skinny” budget outlines sweeping federal spending cuts that would deeply impact public services and nonprofit organizations. The proposal calls for a 22.6% ($163 billion) reduction in domestic discretionary spending, while increasing defense funding by 13%. The budget slashes critical programs in education, housing, environmental protection, public health, and more, while openly targeting nonprofit institutions as “wasteful” and ideologically driven. If enacted, these cuts could have severe consequences for vulnerable communities across the country.
President Trump’s FY2026 “skinny” budget proposes:
OMB Director Russ Vought explained that the administration believes federal spending is “laden with spending contrary to the needs of ordinary working Americans” and criticized funding for nonprofit organizations and institutions of higher education as advancing “radical gender and climate ideologies.”
The budget identifies and denigrates specific nonprofit organizations as “wasteful,” “liberal,” and pushing a “leftist agenda.”
The following departments and programs would be among the most severely affected:
The budget continues a trend of executive actions aimed at weakening the nonprofit sector:
While the skinny budget signals the administration’s funding priorities, Congress holds the power of the purse. A more detailed budget is expected later this month, followed by the start of the FY2026 appropriations process in the House and Senate.
Congress must pass final spending bills or a continuing resolution (CR) by October 1 to avoid a government shutdown.
As federal funding decisions take shape, nonprofit leaders, advocates, and community members must:
Our collective voice is critical in protecting the programs and institutions that ensure equity, safety, and opportunity in communities across the country.
Governor Glenn Youngkin has announced a $900 million reduction in the state’s budget as a precautionary measure in response to anticipated economic uncertainty tied to the federal policy direction of President Donald Trump’s new administration.
Budget Overview
The cuts primarily target one-time capital improvement projects at public colleges and universities that have not yet begun construction. Youngkin characterized the move as fiscally responsible, citing potential federal actions such as workforce reductions, spending cuts, and new trade tariffs that could significantly impact Virginia’s economy, particularly its federal workforce and contractor base.
Political Response
The budget revision has drawn mixed reactions from lawmakers. Republican leaders largely praised the decision as a prudent step to prepare for fiscal turbulence. In contrast, Democratic leaders criticized the governor for acting unilaterally without broader consultation, raising concerns about transparency and legislative oversight.
Investments Maintained
Despite the cuts, the revised budget preserves key investments in:
Youngkin noted that the deferred capital projects are not off the table permanently. He indicated a willingness to revisit these proposals in a supplemental budget later this year, allowing the General Assembly to take them up during the 2026 session.
Why It Matters
With Virginia’s close ties to federal employment and contracting, the state is particularly vulnerable to national policy shifts. This budget maneuver signals a strategic, though politically contentious, effort to shore up financial stability in uncertain times.
April 2025
At the Center for Nonprofit Excellence – Virginia, we are proud to stand alongside you as champions and advocates for the nonprofit sector. We recognize that this year has brought an overwhelming amount of change and uncertainty. Information is coming at us quickly, and many of these shifts—particularly in government funding—have been detrimental to nonprofits’ ability to meet urgent community needs, from child care and food security to affordable housing and mental health services.
As we work through this complex moment together, we encourage nonprofit leaders to prioritize open conversations with funders—local, state, and philanthropic—about how to strategize collaboratively and think differently in the face of significant funding deficits due to federal or state reductions. Now is the time to assess risks, adapt creatively, and lean on our collective strength to sustain our missions.
Courtesy of the National Council of Nonprofits (NCN)
The NCN’s Executive Orders Affecting Charitable Nonprofits chart now includes a helpful “status” column that clarifies which executive actions are in effect, under legal challenge, or pending review.
Additional Resources:
In March 2025, NCN and the Woonasquatucket River Watershed Council, among other plaintiffs, filed a lawsuit against the U.S. Department of Agriculture. The case challenges new federal grant policies that restrict nonprofit access to public funds without clear justification or due process.
From The Commonwealth Institute
The U.S. Senate is advancing a budget framework that could lead to deep cuts to Medicaid, potentially affecting hundreds of thousands in Virginia.
A report by CBPP estimates $880 billion in proposed cuts would lead to:
“We have to fight for Medicaid. We have to fight for SNAP.” — Rep. Suhas Subramanyam (VA-10)
“Over 600,000 working Virginians could be thrown off Medicaid rolls.” — Del. Rip Sullivan (D-Fairfax)
Action Needed: Contact your members of Congress. Advocate for Medicaid and SNAP.
Via The Commonwealth Institute & Virginia Funders Network
Lawmakers reconvened and rejected most of Governor Youngkin’s proposed amendments to the 2025–26 budget. This includes cuts to education and Medicaid planning.
Budget Comparison Tool
TCI Budget Response
Virginia Budget Process Visual
The challenges are real—and so is our shared commitment to community. If you’re feeling overwhelmed or unsure how to respond to these changes, reach out. CNE-Virginia is here to help—whether it’s breaking down policy, identifying action steps, or just brainstorming next moves.
Together, we will keep showing up for the people and places that depend on us.
Mariane Asad Doyle
Executive Director, CNE
Information and updates on a new executive order restricting voting from the National Council of Nonprofits.
President Trump just issued an executive order affecting voting: Preserving and Protecting the Integrity of American Elections. The EO is very broad and restricts access to voting by requiring proof of citizenship, changing voting standards and guidelines, removes federal funding to states for noncompliance, and prohibits foreign nationals from contributing or donating in elections.
Of particular concern, Section 8: Preventing Foreign Interference and Unlawful Use of Federal funds directs the Attorney General to “prioritize enforcement” to “prohibit[] lobbying by organizations or entities that have received any Federal funds”. Organizations and entities are not defined and therefore could apply to nonprofits that receive federal funds and are lawfully advocating and lobbying for their missions.
We expect the EO to be challenged in court quickly.
More information on the EO:
The EO is modeled after the SAVE Act (H.R. 22), which has been raised by many in the network. More information on the bill:
We’ll be updating the Chart soon with the EO. In the meantime, here are the main provisions:
Preserving and Protecting the Integrity of American Elections
The below feature is a conversation between CNE Executive Director, Mariane Doyle, and the Virginia Funders Network.
At the Center for Nonprofit Excellence (CNE) – Virginia, we are dedicated to being a champion, learning partner, and advisor for Virginia nonprofits. Our mission is to support and strengthen the nonprofit sector through education, advocacy, and collaboration. Our legislative education efforts in 2025 have been focused on equipping our members with the knowledge and tools they need to influence policy and make their voices heard. Here’s a look at our key initiatives:
Our 2025 Legislative Priorities
Our 2025 legislative priorities focus on securing and retaining the nonprofit workforce staff and leadership. Nonprofits in Virginia play an essential role in the economy, providing a wide range of jobs in sectors such as education, tourism, healthcare, workforce development, social services, and the arts. They contribute to the overall economic stability and mobility of the economy while being integral to the health and well-being of Virginia’s communities. However, like many employers, nonprofits face challenges in recruiting and retaining qualified staff. Our priorities include:
Legislative Priorities will be posted on the CNE website each year and can be found here.
Bill Tracking During the Virginia General Assembly
Legislative Education Sessions
Visit to the General Assembly