With over 30 years of experience as a local government manager across five Virginia jurisdictions, Doug Walker has had the privilege of working alongside dedicated public servants—both elected officials and appointed staff. Over the course of his career, he has led organizational performance efforts, aligning them with the vision of governing bodies and fostering strong, thriving communities. Today, he shares his expertise as a program instructor and team facilitator with the Virginia Institute of Government at UVA’s Weldon Cooper Center for Public Service and helps connect talented leaders with local governments through his executive recruitment work with The Berkley Group.

Having seen firsthand the vital role nonprofits play in delivering essential programs and services that strengthen communities, Doug is passionate about supporting organizations that foster collaboration between government and the nonprofit sector. He believes the most impactful partnerships go beyond funding—building intentional, dynamic connections that drive community well-being. Through his service on the CNE Board, he hopes to bring his local government experience to deepen these connections and advance CNE’s mission.

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

Meet John W. McCarthy of Warrenton, Virginia. John joined CNE’s Board of Directors in June 2025, and we’re thrilled to have his leadership and support.

John brings over 30 years of experience as a planner and County Administrator, along with 35 years in nonprofit governance. He has held leadership roles in organizations, including a local Mental Health Association, a nonprofit Pre-K program, the public library, and has chaired the local health system, community foundation, and the PATH Foundation.

John believes, “The nonprofit sector can accomplish great things—as can government and the business community—but when they work together, they can drive transformative improvements in a community’s vitality.” He sees CNE as a powerful resource that helps nonprofits achieve their missions and serve their communities more effectively.

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

Last week, we learned that the Presidential Administration issued a “stop work order” to pause the Combined Federal Campaign (CFC)—a move with potentially far-reaching consequences for nonprofit organizations nationwide.

For more than six decades, the CFC has provided federal employees, contractors, and retirees with a simple, reliable way to support charitable causes through payroll deductions. Since its creation in the 1960s, the program has raised nearly $9 billion for nonprofits. Just last year alone, it generated $66 million in charitable giving.

The timing of this suspension is especially concerning. The stop work order was issued just days before the 2025 campaign was scheduled to launch this September—after nonprofits had already invested millions of dollars in application fees and preparation costs. Many organizations were counting on these contributions to sustain programs and services in the year ahead.

In response, the National Council of Nonprofits (NCN) and United Way submitted a joint letter to the Administration urging leaders not to eliminate the CFC. Instead, they called for meaningful collaboration with stakeholders to build on the program’s long-standing legacy of success. This letter has also been shared with key members of Congress, and they are continuing to work alongside national partners to determine additional next steps.

At a time when communities rely on nonprofits more than ever, the suspension of the CFC threatens to disrupt critical funding streams that support health, education, human services, and countless other areas of community life. The nonprofit sector remains committed to advocating for a strong and stable CFC—one that continues to connect federal employees with the causes they care about most.

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.

Webinar Alert!

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).  

Federal Legislative Update

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.

Sign On

Contact Your Members of Congress

Urge them to protect nonprofits and their ability to serve their communities in the tax package.

Use NCN’s Email Template

Additional Resources from NCN:

Updated Chart on Tax Provisions

Chart of implications of specific sections in the draft tax legislation including revoked items.

View the resource

Major Tax Package Heads to the Senate 

Analysis of the draft tax legislation and suggested actions for nonprofit advocates.

View the resource

Factsheet on Tax Reconciliation

Overview of how and why nonprofits should be protected in the tax reconciliation process.

View the resource

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:

• Nonprofit Lowdown with Rhea Wong
• What The Fundraising with Mallory Erickson

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.

Key Highlights from the Budget Proposal

President Trump’s FY2026 “skinny” budget proposes:

• 22.6% cut ($163 billion) to domestic discretionary spending
• 13% increase in defense spending
• Increased funding for homeland security

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.”

Proposed Cuts to Programs and Services

The following departments and programs would be among the most severely affected:

• Education, HUD, Labor, Interior, EPA, USAID
• Infrastructure Investment and Jobs Act: cut by $15.2 billion
• Energy efficiency programs: cut by $2.6 billion
• FEMA preparedness grants: cut by $646 million
• Substance use disorder programs (SAMHSA): cut by $1.06 billion
• EPA clean and drinking water support: cut by $2.46 billion
• Refugee assistance: cut by $650 million
• Fair housing enforcement: cut by $60 million
• Low-income heating assistance (LIHEAP): cut by $4 billion
• Community Services Block Grants: cut by $770 million
• Rental assistance & affordable housing: cut by over $30 billion
• AmeriCorps and other workforce programs: proposed elimination

Escalating Tensions with the Nonprofit Sector

The budget continues a trend of executive actions aimed at weakening the nonprofit sector:

• In January 2025, the White House attempted to freeze all federal financial assistance, prompting the National Council of Nonprofits (NCN) to file litigation.
• The administration has terminated contracts, rescinded grants, and refused to allocate congressionally approved funding.
• President Trump threatened to revoke Harvard University’s nonprofit status.
• DOGE staff were assigned to oversee the Vera Institute, an independent nonprofit receiving federal funding.

What’s Next?

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.

Call to Action

As federal funding decisions take shape, nonprofit leaders, advocates, and community members must:

• Stay informed
• Connect with partners and coalitions
• Engage with elected officials

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:

• Maternal health initiatives
• Disaster relief efforts
• K–12 public education
• Water infrastructure, including a $25 million allocation to address water treatment concerns in Richmond

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.