Three federal developments are affecting the nonprofit sector right now. Below is a summary of each, along with ways to get involved. For more detail, see the full analysis from our partners at the National Council of Nonprofits (NCN).

Urge Congress to Block OMB’s Proposed Grantmaking Regulation

In September, Congress enacted bipartisan legislation to temporarily block the administration from finalizing and implementing a government-wide proposal from the U.S. Office of Management and Budget (OMB) to change federal grantmaking. The temporary delay followed nearly 500,000 public comments, the majority of which opposed the proposal. For more details, see NCN’s chart of the proposed major provisions.

When Congress returns to Washington after the midterm elections, it will have four legislative weeks to decide whether to continue blocking the proposed rule.

Nonprofits can take action in three ways:

1. Sign the national letter urging Congress to permanently block the proposed changes to federal grants. Nearly 2,000 organizations nationwide have already signed.

2. Call or email your Members of Congress, both Republicans and Democrats, and share how the proposed changes could affect the work you do.

3. Mark your calendar for a Day of Action on November 10. Join advocates across the country by contacting your Members of Congress and posting on social media.

NCN’s shared strategy document includes talking points, a list of congressional targets, and other resources.

 

Protect a Fair, Accurate, and Complete 2030 Census

The U.S. Constitution requires a census every 10 years to count all people living in the United States. The results help determine each state’s number of seats in the U.S. House of Representatives and guide the distribution of trillions of dollars in federal funding to communities. Nonprofits, governments, and businesses rely on that funding to meet community needs and deliver services.

On September 10, the U.S. Census Bureau published a proposed rule that would significantly change how the 2030 Decennial Census counts people and collects demographic data. If implemented, the changes could affect the people and communities nonprofits serve every day. They could also limit the demographic information nonprofits, governments, and businesses use to understand and respond to changing community needs.

Get involved:

• Submit a public comment using NCN’s comment guide, which includes talking points, a template, and submission instructions. Comments are due October 13, 2026.

• Sign NCN’s national letter on the proposed changes.

• Share these resources with your networks so nonprofits stay informed about federal regulations affecting their communities.

 

White House Announces Pocket Rescissions

On Friday, September 25, President Trump announced “pocket rescissions” totaling $810 million in previously appropriated funds. The affected agencies are the Departments of Health and Human Services (HHS), Education, Housing and Urban Development (HUD), and Justice (DOJ). The largest single item was $567 for immigration and refugee services within HHS. The package also includes funding for programs related to foreign students, climate change, minority business development, and diversity, equity, and inclusion initiatives.

The administration cited the Impoundment Control Act as its authority, the same law it used last year to rescind $4 billion in foreign aid. The legality of pocket rescissions is contested. Senator Susan Collins (R-ME), Chair of the Senate Appropriations Committee, said the Government Accountability Office “has concluded that pocket rescissions are unlawful and not permitted by the Impoundment Control Act.” When the Supreme Court allowed the 2025 rescissions to proceed, it noted that its order should not be read as a final determination on the merits.

Congress normally has 45 days to review a rescission proposal. A formal response may be difficult, however, because the fiscal year ends September 30 and the House is out of session until November. We will continue to monitor developments and share updates.

We’ve partnered with the National Council of Nonprofits and Nonprofit VOTE, to release a new Virginia Voter Engagement Guide to help nonprofits engage confidently and appropriately in voter education and outreach.

Nonprofits are among the most trusted institutions in our communities. At CNE, we help people navigate complex challenges, strengthen neighborhoods, and create opportunities for individuals and families to thrive every day. Supporting civic participation is a natural extension of that work for us and for nonprofits across the Commonwealth.

Voting is a fundamental pillar of participatory democracy. Every eligible voter should have the opportunity to have their vote count, and active voter participation builds healthier communities. And the data backs it up: according to the 2024 Nonprofit Power report, prospective voters contacted by nonprofits were 10 percentage points more likely to vote than demographically similar registered voters who weren’t contacted (56% vs. 46%).

Inside the guide, you’ll find:

• Section 1: Learn the Rules — A Nonprofit’s Guide to Nonpartisanship, Digital Communications and Nonpartisanship, and the Virginia Voter Registration Drive Guide
• Section 2: Make a Plan — Your Options for Voter Engagement Activities, Get Out the Vote (GOTV), and Partnering for Success
• Section 3: Engaging with Potential Voters — Tips for Successfully Engaging Potential Voters and The Why Vote Tool
• Section 4: Allowable and Restricted Nonprofit Activities — Federal Funds and Nonprofits, Ballot Measures, and the Post-Election Advocacy Planning Tool
• Section 5: How-to Guides — Hosting a Phone or Text Bank, Candidate Forums, and Candidate Questionnaires
• Section 6: Tips and Scripts for Voter Engagement — Engaging Potential Voters in Rural Areas, Engaging Potential Voters with Disabilities, and Engaging Young Voters

Your nonprofit organization is well-suited to helping people become more active citizens by encouraging voter participation.

Download the full guide here.

The U.S. Department of Commerce and the Census Bureau have published a proposed regulation that would make significant changes to how the 2030 Decennial Census counts people and collects demographic data. If implemented, the proposed changes would directly impact the people and communities that nonprofits serve every day. To learn more, read the full analysis and press statement from the National Council of Nonprofits.

 

Why The Census Matters to Nonprofits

The U.S. Constitution requires our nation to undertake a census every 10 years to count all people living in the United States. The data collected by the decennial census determines the number of seats each state has in the U.S. House of Representatives and is used to distribute hundreds of billions of dollars in federal funds to local communities.

Census data is also used by nonprofits, state and local governments, businesses, and others to make critical decisions about how to serve communities, where to invest resources, and how to better address local needs. For many organizations, it is the foundation of grant applications, needs assessments, and program planning. It is critical that the decennial census provides a fair, accurate, and transparent count and that it meets the requirements set in the Constitution.

 

What the Proposed Changes Would Do

The proposed changes would undermine the census’s ability to provide a fair and accurate count of the people living in America. If implemented, the proposal would exclude broad categories of people, including international students, H-1B visa holders, refugees, asylum seekers, undocumented people, and others, from the population count used to allocate congressional seats and federal funding.

The proposed regulation would also eliminate questions on race, ethnicity, and sexual orientation, an unprecedented departure from the census’s longstanding practice of collecting critical demographic information.

Together, these changes would undercount the number of people living in communities, reducing their access to federal resources and political representation. They would also make it harder for nonprofits to understand changing community needs and to address racial, social, and other disparities.

 

Nonprofits Can Make Their Voices Heard

The National Council of Nonprofits has created resources to help nonprofits take action to protect a fair, complete, and accurate 2030 Census. Between now and October 13, we encourage nonprofits to:

• Sign onto a national letter opposing the proposed changes to the census.
• Submit public comments. Use NCN’s comment guide, which includes a summary of the proposed regulation, talking points, a comment template, and instructions on how to submit comments. Comments are due by October 13, 2026.

Public comment periods are one of the most direct ways nonprofits can shape federal policy, and agencies are required to review and respond to substantive comments they receive. Comments that describe how the proposed changes would affect your organization and the people you serve are especially valuable.

Across Virginia, nonprofit leaders are strengthening their organizations and communities by putting CNE’s 7 Actionable Principles into practice. CNE’s 7APs in Action series highlights members whose work reflects the leadership, adaptability, and long-term vision needed to build a strong and sustainable social sector.

 

1.     Create strategic budgets

2.     Manage financial position

3.     Build relationships

4.     Prioritize equity

5.     Develop leaders

6.     Collaborate with communities

7.     Evaluate impact

 

This issue features Anne Bibee, Director of Development at the Youth Volunteer Corps of Hampton Roads. Her leadership reflects a strong commitment to the 2nd and 7th principles—manage financial position and evaluate impact.

At the Youth Volunteer Corps of Hampton Roads, service is more than an activity—it’s a pathway to building confident, capable, and community-minded young people.

“We help youth discover the best in themselves while they’re serving others,” said Anne Bibee, Director of Development.

Through hands-on service learning, the organization engages youth ages 11 to 18 in meaningful volunteer experiences across the region. By partnering with more than 60 local nonprofits, Youth Volunteer Corps of Hampton Roads not only expands community capacity—it equips the next generation with essential work and life skills.

Each project is intentionally designed to go beyond volunteering. Youth participate in team-building activities, complete service projects, and reflect on what they’ve learned—connecting their experiences to larger community issues.

“We’re not just completing a project,” Anne explained. “We’re helping young people understand why the work matters and how they can be part of creating change.”

Whether they’re cleaning up a park or supporting a food bank, participants explore the root causes behind the needs they see. “We talk about how people can become food insecure,” Anne said. “Oftentimes, people are one hardship away from an emergency situation. Helping youth understand that builds empathy and awareness.”

The impact is both immediate and far-reaching. Each year, the organization mobilizes approximately 1,400 youth to contribute 15,000 hours of service across Hampton Roads—all with a small but dedicated team.

“We’re building resiliency and leadership,” Anne said. “It’s a long game. We’re raising the next generation of people who will care for and strengthen their communities.”

As the organization has grown, so has its need to operate strategically and sustainably. Over the past two years, Youth Volunteer Corps of Hampton Roads has engaged deeply with the Center for Nonprofit Excellence’s (CNE) programs, including the Strategic Planning Cohort and Annual Fund Series—investments that have strengthened both vision and operations.

“The strategic planning cohort was incredibly impactful for us,” Anne shared. “We knew our plan was out of date, but we didn’t know how to prioritize creating a new one. That experience guided every decision we’ve made since.”

Rather than sitting on a shelf, their strategic plan has become a living tool.

“We look at our strategic plan every week,” she said. “Everything we do centers around the priorities we identified and how we’re measuring progress.”

Through additional support connected to CNE, the organization has already begun to bring that plan to life—expanding programming and deepening its reach in new communities.

“All of a sudden, we’re able to do things we’ve wanted to do for a long time,” Anne said. “That’s been absolutely amazing.”

CNE has also supported the Youth Volunteer Corps of Hampton Roads in strengthening the organization’s fundraising approach. Through CNE’s Annual Fund Series, Anne has built more intentional systems for donor engagement.

“I’ve been able to create workflows to better connect with first-time, recurring, and lapsed donors,” she said. “It’s helped us be more thoughtful and consistent in how we build those relationships.”

In a challenging funding environment, strategic clarity has been essential. Anne pointed to two of CNE’s 7 Actionable Principles as central to their current focus: Manage Financial Position and Evaluate Impact.

Principle 2: Manage Financial Position

“Because we don’t fulfill a basic need like food or housing, it can be harder to compete for funding,” Anne explained. “So, we’re really focused on telling our story—helping people understand what we do, how we do it, and how we use our money.”

That emphasis on financial stewardship reflects a deep commitment to managing financial position, ensuring the organization remains sustainable while navigating a competitive funding landscape.

Principle 7: Evaluating Impact

At the same time, Youth Volunteer Corps of Hampton Roads is doubling down on evaluating its impact—capturing and communicating the full value of its work.

“We’re working hard on our impact stories,” Anne said. That focus is already paying off.

“We’ve shown in our metrics this year that we’ve gone deeper with fewer resources than ever before,” she said. “And it’s because we’re being more strategic through the resources CNE has provided.”

For Anne, one of the most valuable aspects of CNE’s support is how it helps organizations step back and see the bigger picture. “Sometimes we get so busy doing the work that we forget to think strategically,” she reflected. “CNE’s programs are almost serendipitously timed—they help us get a bird’s-eye view of our organization.”

Ultimately, that perspective is what enables Youth Volunteer Corps of Hampton Roads to continue doing what it does best: empowering young people through service and strengthening the entire community in the process.

“CNE is helping us do our jobs better,” Anne said. “And that means we can have an even greater impact on the youth and communities we serve.”

Across Virginia, nonprofit leaders are strengthening their organizations and communities by putting CNE’s 7 Actionable Principles into practice. CNE’s 7APs in Action series highlights members whose work reflects the leadership, adaptability, and long-term vision needed to build a strong and sustainable social sector.

 

1.     Create strategic budgets

2.     Manage financial position

3.     Build relationships

4.     Prioritize equity

5.     Develop leaders

6.     Collaborate with communities

7.     Evaluate impact

 

This issue features Kathlyn Terry Baker, Chief Executive Officer at Appalachian Sustainable Development (ASD). Her leadership reflects a deep and practical commitment to Principle 2—managing financial position—not just as an exercise of fiscal responsibility, but as an essential strategy for resilience, adaptability, and long-term impact.

ASD’s programming spans five interconnected impact areas: agriculture education, food access, workforce development, resource management, and economic development. At the center of this work is the organization’s Food Hub in Duffield, Virginia—a longstanding initiative that has connected farmers with produce brokers and grocery chains for 26 years. The Food Hub has served as an economic engine for regional producers, a hub where food pantries and those in need can obtain boxes of fresh, local food, and a cornerstone of ASD’s mission to strengthen Appalachian community.

While ASD is a deeply rooted institution in the region, its longevity is driven by a willingness to evolve. As community needs shift, so too does the organization’s approach. One example is the 2020 launch of Groundwork, a workforce development program designed to support individuals facing barriers to employment in discovering their skills, interests, and long-term career pathways, all while being paid for on-the-job training. This kind of innovation reflects ASD’s broader philosophy: staying responsive, even when change is difficult.

Principle 2: Manage Financial Position

That same commitment to adaptability has shaped ASD’s approach to financial management—especially in the face of significant disruption. In 2025, federal funding cuts to agriculture initiatives resulted in a total loss of $4.2 million to ASD’s budget. The impact was immediate and consequential: the organization had to first pause its food box program, an initiative that had purchased produce from local and regional farmers and distributed it to food pantries across the region. They were eventually able to bring the program back by reducing the amount of food being included in the food boxes.

The changes to the food program were not just a financial setback—they were a moment of reckoning. As Kathlyn and her team assessed the path forward, they recognized the need to sharpen their focus and strengthen the financial sustainability of their core operations.

That focus turned to the Food Hub, which generates approximately $3 million annually but still relies on grant funding to cover 5% of its operating costs. While successful, this model left the program vulnerable to the same funding volatility that had just forced difficult decisions elsewhere in the organization.

In response, ASD began prioritizing strategies to reduce reliance on grant and philanthropic funding. A key part of this effort has been identifying and securing new markets for the farmers they support—expanding buyer networks and increasing earned revenue opportunities. By strengthening the Food Hub’s financial independence, ASD is working to ensure that its most critical program can withstand future funding shifts while continuing to serve both producers and communities.

Support from CNE has played a meaningful role in this transition. As ASD faced a pivotal moment, the organization explored bringing in outside consultants for strategic planning, but found the cost prohibitive. The opportunity to participate in CNE’s strategic planning cohort—offered at no cost through the support of the Wellspring Foundation—provided a timely and accessible alternative.

Reflecting on the experience, Kathlyn shared: “The strategic planning cohort came at exactly the right time for us. It gave us the space, structure, and support to step back from day-to-day demands and really think about our future in a more intentional way.”

Beyond affordability, the cohort offered through CNE provided something equally valuable: relevant, nonprofit-specific guidance and a sense of partnership. Through structured sessions and peer learning, ASD’s leadership was able to step out of reactive mode and into more proactive, long-term thinking—an essential shift during a period of uncertainty.

Looking back on the past year, Kathlyn summed up ASD’s experience in a single word: “Pivoting was the operative word for 2025.”

That spirit of pivoting—of adjusting course while staying grounded in mission—captures what has sustained ASD for more than three decades. It reflects an organization that understands when to protect what’s working, when to let go of what no longer serves its goals, and how to make disciplined financial decisions that keep its work moving forward.

In an increasingly complex nonprofit landscape, ASD offers a clear example of what it means to manage financial position not just as a necessity, but as a strategic lever for resilience, adaptability, and lasting community impact.

Across Virginia, nonprofit leaders are strengthening their organizations and communities by putting CNE’s 7 Actionable Principles into practice. CNE’s 7APs in Action series highlights members whose work reflects the leadership, adaptability, and long-term vision needed to build a strong and sustainable social sector.

1.     Create strategic budgets

2.     Manage financial position

3.     Build relationships

4.     Prioritize equity

5.     Develop leaders

6.     Collaborate with communities

7.     Evaluate impact

This issue of CNE’s 7APs in Action features Jeff Connell, Director of a Southwest Virginia 4-H center, whose leadership reflects a strong commitment to managing financial position and developing leaders—two principles guiding the organization through a season of growth and transformation.

The 4-H center’s story begins long before its current mission took shape. Long before it became a center for youth leadership and learning, the property served a very different purpose. Established in the 1800s as a “poor farm,” the site once provided housing and work for individuals experiencing poverty and displacement. Today, many of those original buildings (including cabins built in the early 1880s) still stand—transformed into classrooms, gathering spaces, and places where a new generation of young people build confidence, independence, and connection.

Since officially becoming a 4-H center in the late 1950s, the site has grown into a hub for youth development, anchored in its core purpose: camp-based learning experiences that shape the next generation.

For Jeff Connell, 4-H’s Executive Director, every decision—whether financial, operational, or programmatic—begins with the same question: how will this strengthen the experience and opportunities available to young people?

“We always come back to why we exist,” Connell shares. “Everything we do is about making that experience better and helping it grow.”

Each summer, the center welcomes nearly 2,000 youth from 13 counties for camp programs that emphasize leadership, independence, and hands-on learning. Throughout the year, that number grows to more than 3,500 participants through retreats, workshops, and community events.

Principle 2: Managing Financial Position

When Connell stepped into his role just over two years ago, the organization—like many nonprofits—was navigating financial challenges in the wake of COVID-19.

In the years following the pandemic, the organization faced many of the same pressures impacting nonprofits across the country: rising costs, operational uncertainty, and shifting participation patterns. Rather than scaling back its vision, the center focused on building a stronger and more sustainable future.

“We’ve worked really hard to grow our revenue and reduce debt,” he explains. “And we’ve been able to do that by expanding how people see and use this space.”

By expanding facility rentals, hosting community events, and broadening year-round programming, the organization has diversified revenue while remaining firmly rooted in its mission.

At the same time, the team is thinking long-term. A new strategic plan outlines significant campus improvements, including a dining hall designed to double as an event venue and a flexible education building that can accommodate both youth programming and large community gatherings.

The goal is clear: build infrastructure that not only enhances the camp experience but also generates sustainable revenue.

“We want to be able to tell supporters—if you help us build it, we can maintain it,” Connell says.

Principle 5: Developing Leaders

Leadership development is woven into every aspect of the organization’s work—from campers to staff to emerging young adults, ensuring it is part of the culture at 4-H.

In addition to traditional camp programming, the center has introduced new initiatives like leadership workshops, teen-focused trainings, and “Adulting 101,” a program designed to equip young people with practical life skills as they transition into adulthood.

“We’re asking, what do teenagers need to know before they step into the real world?” Connell explains. “And then we build programming around that.”

The organization is also expanding its reach to college students—an audience that has historically served as camp staff but is now being intentionally engaged as participants and leaders in their own development journey.

This focus reflects a broader commitment to cultivating leadership at every stage, ensuring that young people leave not only with memories, but with skills and confidence that last a lifetime.

While financial sustainability and leadership development are top priorities, Connell is equally focused on strengthening relationships across the community.

“We’ve worked really hard to rebuild trust and connection,” he says. “With local businesses, with families, with the broader community.”

Future plans include expanding public access to the campus through recreational amenities like walking trails, sports courts, and open swim hours—creating new opportunities for the community to engage with the space.

As the organization navigated growth, planning, and long-term sustainability, Connell found an important source of support and connection through the Center for Nonprofit Excellence (CNE). Connell explains,  “CNE gets a group of people who are going through similar things together for us to be able to discuss it…”

 “Those little things—those connections—are kind of big,” shared Connell.

Through CNE’s Leadership Circle and Strategic Planning Cohort, Connell has gained tools, peer relationships, and insights to strengthen both his leadership and the organization’s direction.

“It’s been incredibly helpful to be in a room with others facing similar challenges,” he shares. “You learn from each other, and that makes a big difference.”

Today, the 4-H center stands at an exciting intersection of history and possibility—honoring its roots while building toward a more sustainable, community-centered future.

At its core, the mission remains unchanged: to create meaningful experiences that shape young people into capable, confident leaders.

For generations, 4-H has helped young people grow into leaders. Through intentional stewardship, sound financial strategy, and a clear vision for the future, this center is ensuring that tradition continues for generations to come.

Across Virginia, nonprofit leaders are strengthening their organizations and communities by putting CNE’s 7 Actionable Principles into practice. CNE’s 7APs in Action series highlights members whose work reflects the leadership, adaptability, and long-term vision needed to build a strong and sustainable social sector.

1.     Create strategic budgets

2.     Manage financial position

3.     Build relationships

4.     Prioritize equity

5.     Develop leaders

6.     Collaborate with communities

7.     Evaluate impact

This issue features Khalil Benhajjam, Director of Programs at the Culpeper Literacy Council. His leadership reflects a strong commitment to the 3rd and 6th principles—build relationships and collaborate with communities.

When the Culpeper Literacy Council first began in 1987, its mission was simple but powerful: help adults in the community build the literacy skills they needed to navigate daily life. What started with a handful of volunteers teaching reading and writing has grown and evolved alongside the needs of Culpeper’s community.

Today, the organization focuses primarily on teaching English as a Second Language (ESL) to adults, helping newcomers strengthen their communication skills, build learner confidence, and help learners feel more connected to the community around them.

“We’re mainly focused on providing English as a Second Language to adults in the area,” says Khalil Benhajjiam, the organization’s Executive Director. “But beyond language, our goal is to help people understand the systems and culture around them so they can fully participate in community life.”

Principle 6: Collaborating with Communities

That work reflects a strong commitment to collaborating with communities, meeting people where they are, and responding to evolving needs. In addition to ESL classes, the organization has expanded its programming to include a beginner Spanish class and a growing focus on health literacy—helping participants better navigate the U.S. healthcare system and access essential services.

For many immigrants, language barriers can make everyday systems difficult to understand. Through community-based learning and practical instruction, the council helps participants gain not only language skills but also the confidence to engage fully in their lives and communities.

But the impact of the Culpeper Literacy Council goes far beyond classroom instruction. “It might seem like it’s just classes,” Khalil says, “but it’s really more than that. It’s a way of life.”

Principle 3: Building Relationships

The organization places a deep emphasis on building relationships, creating a welcoming space where learners can connect with one another, form friendships, and find support. For many participants, the council becomes a trusted place to ask questions, access resources, and connect with services like food pantries, workforce programs, and healthcare providers.

Volunteers are at the heart of this work, helping to lead classes, support learners, and sustain the momentum of the programs. As the organization continues to grow, there is always a need for more volunteers to expand class offerings and meet the needs of a diverse and growing community.

“It takes both the learner and the volunteer to make this work,” Khalil says. “Everyone has different schedules and responsibilities, so we’re always grateful for volunteers who want to help keep classes going.”

Khalil’s own journey reflects the transformative power of language and connection. Originally from Morocco, he developed a passion for English at a young age and was later selected to participate in a student exchange program in Virginia. Immersed in an English-speaking environment, he quickly built fluency and gained firsthand experience in the challenges and opportunities that come with learning a new language.

Years later, he returned to the United States and found his way to the Culpeper Literacy Council as a volunteer ESL instructor. When the opportunity arose to step into a leadership role, he embraced it—bringing both personal experience and deep passion to the work.

Support from the Center for Nonprofit Excellence (CNE) played an important role in that transition.

“When I first became director, the nonprofit world was new to me,” Khalil says. “Someone suggested I meet with CNE, and that meeting honestly changed the course of my year.”

Through his connection with CNE, he pursued guidance, training, and a network of peers—resources that helped him grow into his leadership role and strengthen the organization’s impact. CNE also connected him with opportunities like the Emerging Leaders program and the Executive Director’s Circle, further supporting his development and the organization’s capacity.

“CNE has been a huge game changer for me,” he shares. “It helped me grow professionally and gave me the support I needed to lead this work.”

Today, the Culpeper Literacy Council continues to grow and evolve, guided by community needs and sustained through strong partnerships, dedicated volunteers, and a clear sense of purpose.

At its core, the organization’s work is about connection—helping people communicate, understand one another, and build a shared sense of belonging.

“Sometimes people are just misunderstood because of language,” Khalil reflects. “Once we can hear each other and understand each other, we realize we’re all driven by many of the same hopes.”

Through its commitment to collaborating with communities and building relationships, the Culpeper Literacy Council is doing more than teaching language—it’s helping build a stronger, more connected community for all.