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.

CNE believes that when it comes to improving outcomes for Virginians, nonprofits are getting it done. United Way of South West Virginia is doing just that. Each day, the organization fights for the health, education, financial stability, and resilience of community members across 21 localities from Southwest Virginia through the New River Valley.

How does United Way SWVA do it? According to the organization’s Executive Director, Megan Parks, they’re keeping a pulse on the evolving needs of community members and embracing versatility to meet changing demand. 

Parks credits the organization’s adaptability for the success of its 2024 response to Hurricane Helene, “Disaster recovery on September 29th may not have been our plan for that day, but it became our plan that day. We all called one another and said, okay, what do we need to do?”

Guided by organizational flexibility and supplemented by holistic community knowledge, United Way SWVA raised $2.2 million in response to Hurricane Helene and gave 100% of it to long-term recovery efforts in the community. The nonprofit also operated donation centers and managed volunteers during the recovery effort.

Parks and her team understand that today, fighting for community resilience in South West Virginia requires weaving the region’s disaster-prone status into the fabric of their mission. A first step in this direction is the org’s launch of an emergency preparedness and education program for South West Virginia families.

While United Way of Southwest Virginia dedicates itself fully to supporting local families, CNE supports the organization directly, providing the guidance, skills, and resilience needed to address evolving community needs. Reflecting on her experience working with CNE, Parks says, “I knew we were in good hands. I knew we were in the right place at the right time.”

From conducting Board of Directors trainings on governance and fiduciary duty to facilitating regional convenings for nonprofit Executive Directors, CNE is ensuring that United Way of South West Virginia has the capacity it needs to keep getting it done.

CNE believes that when it comes to improving outcomes for Virginians, nonprofits are getting it done. Blue Ridge Discovery Center is no exception. In their work to connect community members with nature, the organization is inspiring curiosity, discovery, and stewardship through the wonders of the Blue Ridge.

How is Blue Ridge Discovery Center accomplishing its mission? According to the organization’s Executive Director, Lisa Benish, it’s all about getting visitors outside and into the elements. 

Referencing a new renovation to the Center’s headquarters, Benish says, “Even though this is a beautiful building, we try not to stay in it…We might revisit something from a scientific standpoint, and then we take [visitors] back out. So we tell [visitors], when you come here, this is outdoor education, and we’re going to be outside.”

Wilderness explorations, salamander meanders, butterfly counts, and hawk migration walks are just a few of the many outdoor adventures the Blue Ridge Discovery Center has to offer.

It’s an exciting time to be at the Blue Ridge Discovery Center. Having completed renovations on their headquarters and a staff housing facility, the organization is currently working on a new visitors center, which is slotted for completion this time next year. 

With a visible, roadside location, Benish is looking forward to the program-level expansion the visitor center will introduce, “This building will be the gateway…we’ll be able to do more interpretive education right there on the spot and provide more programs, get more sign-ups…I think it’ll really open our doors to more opportunities.”

The Blue Ridge Discovery Center inspires youth and adults through immersive nature experiences, and CNE supports them by offering guidance and training for continued organizational growth. Reflecting on her experience meeting with CNE’s Executive Director Circle, Benish says, “Sometimes you feel completely alone out here, especially as a director…this is that safe space where [directors] can get feedback from other people who are feeling the same pains we are. That has been really inspirational.”

CNE looks forward to continuing our support of the Blue Ridge Discovery Center, ensuring the organization has the capacity it needs to keep getting it done.

The National Council of Nonprofits (NCN) and a coalition of other nonprofits, associations, unions, and local government filed a lawsuit today challenging the Administration’s final rule to overhaul the Public Service Loan Forgiveness (PSLF) program by unlawfully limiting which charitable nonprofits qualify as “eligible employers.”

The lawsuit – National Council of Nonprofits et. al. v. McMahon – is asking the courts to strike down the final rule and safeguard the PSLF program as Congress intended: a bipartisan promise to those who choose to serve their communities, regardless of politics.

As NCN president and CEO, Diane Yentel stated in their press statement, “The administration’s new regulation unlawfully politicizes and undermines a successful, bipartisan program, harming nonprofits and the millions of people who rely on them every day. PSLF has a proven track record of helping local nonprofits recruit and retain the workforce they need to provide essential services to the American people. Contrary to law, the regulation allows current and future administrations to change PSLF eligibility according to their priorities or ideology, inviting government overreach and abuse and creating instability that will undermine the program’s success. This must not stand.”

In addition to NCN, plaintiffs include nonprofits: Amica Center for Immigrant Rights, Coalition for Humane Immigrant Rights, Legal Aid DC, Oasis Legal Services, associations and unions: National Association of Social Workers, AFT, American Federation of State, County, and Municipal Employees, and National Education Association, and local government: City of Albuquerque, City of Boston, City of Chicago, City and County of San Francisco, County of Santa Clara. The coalition is represented by Protect Borrowers and Democracy Forward in this matter; the County of Santa Clara and City and County of San Francisco represent themselves.

You can read NCN’s press statement on the lawsuit.

As a nonprofit executive, academic, and pastor, Dr. Nathan Walton has devoted his career to equipping and mobilizing organizations for social transformation. That career has included serving as Executive Director of a community development nonprofit that specialized in youth development, as well as over a decade of pastoral ministry. Walton currently serves as Co-Lead Pastor of East End Fellowship in Richmond, Virginia.

Dr. Walton first experienced the impact of CNE while leading a CNE member nonprofit and deeply appreciated the community of support and resources that CNE offered. Years later, as the most recent outgoing CNE board chair, Nathan is excited to continue offering his nonprofit expertise to support CNE’s strategic planning and advancement efforts. Those efforts are not only aiding the work of countless nonprofits across Virginia, but are furthering the flourishing of the social impact sector as a whole.

Thank you, Nathan, for your outstanding support of CNE!

Marta Keane has spent her career helping others thrive, first as a speech-language pathologist and audiologist and later as a nonprofit leader. She began at the Woodrow Wilson Rehab Center, where she supported patients from toddlers to seniors—teaching sign language to a preschooler who had survived a stroke, and helping a young man with a brain injury communicate through Morse code. These experiences shaped her lifelong commitment to restoring dignity and improving quality of life.

Over the next 30 years, Marta took on leadership roles directing rehabilitation programs, mentoring clinicians, and integrating physical, occupational, and speech therapies to better serve patients. She later returned to the University of Virginia to train in audiology, helping to ensure more accurate diagnoses and treatments.

In 2013, she became CEO of the Jefferson Area Board for Aging (JABA), leading the nonprofit for 13 years before retiring. She has also held leadership roles with the Speech and Hearing Association of Virginia, the American Speech-Language Hearing Association, and the Virginia Association of Area Agencies on Aging.

Today, Marta continues to teach on aging at the University of Virginia and James Madison University, and serves on several local boards. As CNE’s Board Chair, the organization’s mission inspires her, “I am honored to be a board member for CNE because its mission reflects what I believe deeply—that nonprofits deserve strong support so they can continue providing the programs and services our communities depend on.”

Thank you, Marta, for your outstanding support of CNE!

CNE’s 7AP in Action series showcases members who exemplify excellence in nonprofit work and embody one or more of CNE’s 7 Actionable Principles (7AP)—guiding values that support a strong, sustainable social sector: This issue features Erika Viccellio, Executive Director at Foutain Fund.

1.     Create strategic budgets

2.     Manage financial position

3.     Build relationships

4.     Prioritize equity

5.     Develop leaders

6.     Collaborate with communities

7.     Evaluate impact

Her leadership reflects a strong commitment to the 4th principle—prioritize equity.

The Fountain Fund began as a quiet but radical proposition: What if financial justice could be a key to healing the harms of mass incarceration? Founded in Charlottesville by former federal prosecutor Tim Heaphy, the Fountain Fund began its journey eight years ago with a mission rooted in understanding—to provide low-interest loans to formerly incarcerated individuals, removing the financial barriers that too often block the road to reintegration. The organization quickly discovered something else: their work wasn’t just about access to capital. It was about equity.

Principle 4: Prioritize equity

Erika Viccellio, who joined as Executive Director early in the Fund’s journey, brought a passion for turning equity from a value into a structure, not just what the Fund did, but how it did it.

“We’ve been asking ourselves,” she said, “what am I willing to give up so that others have opportunity?”

From rethinking traditional top-down leadership to prioritizing lived experience in every facet of the organization, the Fountain Fund didn’t just aim to help formerly incarcerated individuals; they invited them to lead. That meant hiring team members with lived experience, rebalancing board representation to reflect the communities they served, and honoring alternative forms of expertise, from the street to the banking sector. But shifting how an organization thinks and operates requires more than vision—it takes support.

For years, the Fountain Fund has found community through the Center for Nonprofit Excellence – Virginia (CNE)’s peer-to-peer learning programs. Fifteen years ago, Erika joined CNE’s very first Executive Directors Circle, with some of members of this group still meeting monthly today. Since then, other Fountain Fund team members have taken part in the Leaders of Color Circle and the Emerging Leaders Academy, continuing the tradition of shared growth and support. As Erika reflects, “CNE’s peer-to-peer learning opportunities have been foundational to the growth of the Fountain Fund team.”

Today, the Fund operates in multiple cities, including Charlottesville, Philadelphia, Boston, and Richmond, all while maintaining a community-rooted, relationship-first model. From court debt relief to small business loans, each transaction is more than money; it’s a chance to rebuild lives with dignity and trust.

The model is working. The Fund has issued nearly 900 loans totaling over $4 million, but just as importantly, it has become a beacon for how to build power with, not just for, people. As Erika puts it, “We don’t have a flashy equity statement. But if you look at everything we’re doing, it’s about equity. It’s about flipping the script.” The Fountain Fund continues to grow—with care, with courage, and with a clear-eyed commitment to equity that isn’t just spoken, but lived.