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

FOR IMMEDIATE RELEASE

Date: 2/5/2026

Contact:

Dr. Mariane Asad Doyle

Center for Nonprofit Excellence-Virginia

mdoyle@thecne.org

The Center for Nonprofit Excellence & UVA School of Data Science Release 2026 Economic Impact of the Nonprofit Sector Report

Charlottesville, VA — [February 5th, 2026] — The Center for Nonprofit Excellence (CNE) and the University of Virginia School of Data Science are proud to announce the release of the 2026 Economic Impact of the Nonprofit Sector Report, a comprehensive, data-driven examination of the essential role nonprofits play in the economic health and daily life of communities across Virginia.

With 43,115 charitable nonprofits, 388,004 employees, and nearly $80 billion in annual revenue, Virginia’s nonprofit sector represents a powerful economic engine—one that fuels jobs, services, and community wellbeing across the Commonwealth. The report draws on IRS Business Master File data, 990 filings, and statewide impact indicators to provide one of the most detailed views to date of how nonprofits strengthen Virginia’s economy and quality of life.

“Nonprofits ensure that Virginians have access to food, shelter, childcare, job training, and emergency services,” said Dr. Mariane Asad Doyle, Executive Director of the CNE. “This report underscores what we see every day: nonprofits are indispensable partners in building thriving, equitable communities.”

Key Findings

• Nonprofits deliver essential services that allow Virginians to work, learn, and care for their families. Services range from childcare and food assistance to job readiness, fire and rescue response, and emergency support.

• Nearly 235,000 children in Virginia live in households below the federal poverty level, and 39% of households fall below the ALICE threshold—making nonprofit services vital for economic stability.

• Food banks provided 175 million pounds of groceries in 2024, meeting sharply increased demand across the state.

• More than 6,400 Virginians earned workforce credentials through nonprofit-led job training initiatives since 2020.

• Volunteerism remains strong, with more than 2.5 million Virginians volunteering in 2023.

• Nonprofits are trusted providers: 81% of U.S. voters believe charities address vital needs that government cannot or should not handle alone.

• Public investment is crucial: In many regions, nonprofits rely heavily on government grants—funding that philanthropy alone cannot replace.

Why This Report Matters

As service demand rises and costs increase, many nonprofits face growing financial pressure. More than one-third ended 2024 with an operating deficit, and 86% cited inflation as a significant challenge. Understanding the true economic and community impact of nonprofits helps policymakers, funders, and partners make informed decisions about where and how to invest.

“This report provides clear evidence that nonprofits are not only mission-driven organizations—they are integral to Virginia’s economic stability,” said Rebecca Schmidt, Director of Impact and Applied Learning at the UVA School of Data Science. “Supporting the nonprofit sector is essential to supporting the Commonwealth.”

About the Report

The 2026 Economic Impact of the Nonprofit Sector Report is the result of a partnership between the UVA School of Data Science and the CNE, combining advanced data analysis with on-the-ground nonprofit expertise. The full report details sector size, employment trends, revenue distribution, service impact, and the risks posed by funding instability.

About the Center for Nonprofit Excellence

The CNE strengthens nonprofits to realize the potential of communities. Through training, consulting, research, and collaborative initiatives, the CNE supports hundreds of organizations across Virginia in building capacity, resilience, and community impact.

About the UVA School of Data Science

The UVA School of Data Science advances interdisciplinary research, education, and public service by leveraging data-driven methods to address society’s most pressing challenges. The School partners with communities, nonprofits, and public agencies to generate insights that inform policy and practice.

To read the report, please visit the CNE’s website, thecne.org/economic-impact-report

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

FOR IMMEDIATE RELEASE

Date: 2/2/2026

Contact:

Dr. Mariane Asad Doyle

Center for Nonprofit Excellence-Virginia

mdoyle@thecne.org

Virginia House Bill 353 Unanimously Passes House Labor & Commerce Subcommittee (9–0)

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.

HB 353, sponsored by Delegate 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 more nonprofits 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.

Dr. Mariane Asad Doyle, Executive Director of the Center for Nonprofit Excellence-Virginia, stated on the subcommittee’s vote:

“This unanimous support reflects the shared understanding that strengthening nonprofits’ access to affordable health benefits is essential not only for our sector’s workforce but for the communities we serve. HB 353 would empower more charitable organizations to come together in new ways to support their teams, advance their missions, and build a stronger Virginia.”

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 success in subcommittee, HB 353 now advances to the full House Committee on Labor and Commerce for further consideration. Additional hearings and deliberations are expected in the coming weeks as the bill moves through the legislative process.

For more information, please contact Dr. Mariane Asad Doyle, mdoyle@thecneorg.

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:

• Sharing testimony virtually or in-person between 1 and 3 pm, or

• 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.

Share Your Testimony

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.

• 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.

• 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.