I am Scott Garka, President of 501(c)3 nonprofit Richmond CultureWorks and I am writing to ask for your support of HB353. CultureWorks aims to strengthen arts and culture in the Richmond and Tri-Cities region to drive greater impact in our region. Nonprofit arts and culture represents a $329 million annual economic engine for our region supporting 6700 FTE jobs and generating $80 million in local, state, and Federal tax revenues to support schools, fire, police and other critical services. Yet many of those employed in arts and culture go without health insurance because their small nonprofit employers don't provide it and they cannot afford it themselves. This is rolling the dice for them as one car collision or illness could bankrupt them no matter how careful they are. CultureWorks has looked into creating some kind of benefits consortium to address this issue and are told at every turn that it is not legislatively possible. HB353 seems to open up that possibility so I urge you to vote in favor of the technical change. 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.

My name is Antoine Williams. I'm Managing Director of AVANTKOFA and former Housing Program Manager for the City of Charlottesville. I support HB 353's intent to expand sponsoring association pathways for health benefit plans. Small nonprofits carry weight that would otherwise fall to the public sector—housing services, workforce development, community health, emergency assistance. But these organizations often can't access the group benefits market that larger employers take for granted. Without market access, they can't offer competitive benefits. Without competitive benefits, they struggle to recruit and retain the talent the work demands. The sector weakens, and communities lose capacity. HB 353 addresses this gap by allowing nonprofits, faith-based organizations, and trade associations to band together as sponsoring associations—creating the market access that individual small operators cannot achieve alone. I encourage the Committee to consider: 1. Clarifying the five-year existence requirement for newly formed associations serving emerging workforce sectors 2. Ensuring accessibility for small nonprofits and faith-based organizations already anchoring Virginia's communities Thank you.

My name is Antoine Williams. I'm the Managing Director of AVANTKOFA and a former Housing Program Manager for the City of Charlottesville. I support HB 353's intent to expand sponsoring association pathways for health benefit plans. In my research on workforce stability, I've identified what I call the "Benefits Trap"—where skilled professionals remain in misaligned positions because decoupling health coverage from employment is financially prohibitive. This is particularly acute for essential workers in housing, public safety, and municipal government. HB 353 creates infrastructure for portable benefits through sponsoring associations. This aligns with broader workforce resilience goals. I encourage the Committee to consider: 1. Clarifying the five-year existence requirement for newly formed associations serving emerging workforce sectors 2. Ensuring accessibility for small nonprofits and faith-based organizations already serving essential workers Thank you.

Thank you for this opportunity. I am the retired CEO of an area agency on aging, and currently on a non-profit hospice board, and chair of the Center for Non-Profit Excellence (CNE) board. I speak from experience when I emphasize the importance of quality and affordable health care plays in recruiting and retaining great staff. This has become even more important as the marketplace affordability is questionable. Being able to allow a charitable nonprofit organization {}501(c)(3) to serve as a sponsoring association for benefits consortium extends group health plan opportunities to thousands of nonprofit employees who often lack access to affordable coverage options. Charitable organizations, particularly small and mid-sized, frequently struggle to offer competititve benefits because of limited bargaining power in the insurance market. This would allow nonprofits to pool risk and reduce premiums. Nonprofits provide necessary services to help the most vulnearable in our communities, as well as being a major employer. This makes good business sense and humanitarian support. This is a technical change with significant implications and yet no cost to the Commonwealth. Please help us support recruiting and retaining quality staff, and provide affordable healthcare to many more who need it, through a clear solution. I appreciate your support, Marta M. Keane

Chair and members of the committee, thank you for the opportunity to speak today. My name is Dr. Mariane Asad Doyle, and I serve as CEO of the Center for Nonprofit Excellence, representing more than 1,000 nonprofits across Virginia. Nonprofits are essential employers in every community — providing healthcare, childcare, housing, food access, and disaster response — yet they face one of the biggest workforce challenges: the rising cost of health insurance. Many small and mid-sized nonprofits simply cannot compete with larger employers, leading to staff turnover, burnout, and service disruption. HB353 is a practical, market-based solution. It allows nonprofits to pool together to access more affordable, stable group health plans — just as chambers of commerce and other membership organizations already do. This bill does not create a new mandate or cost to the state. It simply gives nonprofits a tool to better support their workforce. When nonprofit employees are healthy and retained, communities are stronger and services are more reliable. On behalf of Virginia’s nonprofit sector and the people we serve every day, I urge you to support HB353. Thank you.

I am writing in support of HB353. Nonprofit organizations in Virginia provide critical services to meet the basic needs of Virginians and would be unable to operate without the dedicate of nonprofit professionals. Nonprofit professionals are some of the most talented, authentic, and dedicated individuals in Virginia. Often, a job or a career in the nonprofit space means less pay, fewer benefits, and more uncertainty compared to the private sector, despite the fact that nonprofits are doing the work to keep people alive through a time of increasing difficulty and crisis. Now is the time to act and open avenues for a stronger nonprofit workforce and this bill would create a pathways to better, less expensive health benefit plans for nonprofit professionals.

I currently work in the nonprofit sector serving a community I grew up in and care deeply about. Working in nonprofit does not come with large salaries when compared to corporate or private-sector jobs. Instead, many of us choose this path because of our passion for the mission of the organization and the people we serve. For me, the opportunity to give back to my community and make a meaningful impact outweighs the appeal of a six-figure salary in a role I may not feel as connected to. Access to affordable health-care benefits within the nonprofit sector would be a major incentive for professionals like me to choose — and remain in — nonprofit work. Competitive benefits matter, not because nonprofit employees expect more, but because they allow us to build sustainable careers while continuing to serve others. Without access to viable health insurance options, nonprofits risk losing dedicated, mission-driven staff to higher-paying sectors simply because of basic benefit needs. In my experience, nonprofits prioritize their employees and volunteers by supporting work/life balance. There is flexibility, trust, and an understanding that personal well-being matters. I have not encountered micromanagement or unnecessary barriers to taking time off when it is needed. While I have only been in the nonprofit sector for just under a year, it is a space where I can genuinely see myself building a long-term career — provided that the fundamentals, like health coverage, are attainable. House Bill 353 offers a practical and important solution. It does not create a new state program, require state funding, or mandate participation. Instead, it makes a technical change in Virginia law that would expand eligibility for nonprofit-led health benefits consortiums. This would allow charitable nonprofits to collaborate on affordable coverage options for their staff, strengthening recruitment, retention, and long-term organizational sustainability. Nonprofits are employers just like businesses. They compete for talent, manage payroll, and provide essential services to communities across the Commonwealth — especially in rural and underserved areas where nonprofits are often among the largest employers. Access to group health insurance through trusted, nonprofit-serving consortiums would help stabilize the workforce and ensure continuity of vital services. With rising healthcare costs placing increasing strain on nonprofit budgets and contributing to staff turnover, House Bill 353 is needed now. It recognizes the reality of nonprofit employment and provides a flexible tool to help nonprofits remain competitive, without imposing new mandates. I strongly urge support for House Bill 353 and appreciate the opportunity to share my perspective as someone committed to nonprofit work and community service in Virginia

This bill matters because it 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. This bill also supports the nonprofit workforce her in Virginia. 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

Good afternoon, I am writing in strong support of HB 353 and to urge its passage. I work in nonprofit operations in an HR role, where recruiting and retaining qualified staff is increasingly difficult, not because of lack of mission commitment, but because many charitable nonprofits simply cannot offer affordable, competitive health benefits. For small and mid-sized 501(c)(3) organizations, limited bargaining power in the insurance market often results in higher premiums, fewer plan options, or no viable coverage at all. HB 353 addresses this challenge through a practical, targeted amendment to Virginia law. By allowing 501(c)(3) organizations to serve as sponsoring associations for benefits consortiums, the bill would enable charitable nonprofits to pool risk, leverage collective purchasing power, and expand access to group health plans for nonprofit workers across the Commonwealth. This change is especially important for organizations that provide essential services, often under state contracts or grant funding that does not adequately account for rising benefit costs. When nonprofits are unable to offer sustainable health coverage, the consequences are real: higher staff turnover, difficulty filling vacant positions, and increased strain on the very systems that serve Virginia’s most vulnerable populations. HB 353 is not a mandate or an expansion of government programs. It is a technical correction that modernizes the Code of Virginia to reflect the realities of today’s nonprofit workforce. By including charitable nonprofits alongside existing eligible associations, the General Assembly would be supporting workforce stability, operational sustainability, and continuity of services in communities statewide. In short, this bill strengthens nonprofits’ ability to care for the people who care for Virginia. I respectfully ask you to support HB 353. Thank you for your consideration and for your commitment to Virginia’s nonprofit sector. Katherine King

Please, please support our struggle to support health care - especially during this difficult time! Thank You.

Please vote YES for HB353. I am in support of the HB353 for small businesses, nonprofit organizations, and other entities that will benefit small group plans. With the challenges many are facing with the rising costs of healthcare, there should be affordable healthcare group insurances, products, and program resources to serve this population. Thank you,

In regions like Southside Virginia, nonprofits are often among the largest employers and essential service providers—especially in rural and underserved communities. Organizations like the Dan River Nonprofit Network support hundreds of nonprofits delivering critical services—from healthcare and workforce development to food security and education. HB353 would help these organizations compete for talent, retain experienced staff, and continue delivering these vital services by making affordable group health insurance more accessible. Many small and mid-sized nonprofits struggle to offer competitive health benefits because of rising costs and limited bargaining power. HB353 allows nonprofits to join group-facilitated health plans, creating economies of scale and more affordable options for employees who provide essential community services. Affordable, competitive health insurance is directly tied to recruitment, retention, workforce stability, and organizational sustainability. HB353 supports the people delivering critical services in every region of the Commonwealth. This bill builds on existing, trusted infrastructure. Sector capacity-building organizations—like the one I work for and organizations we partner with—already serve as trusted conveners and partners for nonprofits. Allowing these organizations to facilitate group health insurance aligns with the original intent of the law and leverages proven networks—without creating new state programs. Why is this needed now? Honestly, it has been needed for over a decade. When the Dan River Nonprofit Network formed in 2013, our community identified healthcare costs as a major barrier—for both nonprofit employees and organizations trying to recruit and retain talent. Over the years, we’ve tried to provide short-term solutions, like facilitating discounted health agreements with local FQHCs, but these “band-aid” approaches can’t solve the systemic problem. Rising healthcare costs continue to strain budgets and drive staff turnover. HB353 offers a practical, timely tool to help nonprofits remain competitive and continue serving our communities.

As the founder and executive director of Babybuns For Life Network, Inc., a Virginia-based nonprofit serving families with babies in neonatal intensive care units (NICUs), I strongly support HB 353. Babybuns For Life Network is currently a volunteer-led organization with no paid staff and no employer-sponsored health or life insurance benefits for board members. While this structure has allowed us to maximize limited resources and directly serve families in crisis, it also presents challenges as we plan for long-term sustainability, growth, and organizational stability. As our nonprofit continues to expand its reach and impact, the ability to eventually recruit and retain qualified staff will be critical. Access to affordable, consortium-based health benefits would be a key factor in making future paid positions feasible and responsible. HB 353 creates an important pathway for small and emerging nonprofits like ours to plan ahead and build capacity without being priced out of offering benefits. Through our partnership with the Center for Nonprofit Excellence (CNE), Babybuns For Life Network has benefited from collaborative support, strategic planning, and responsible stewardship of funds. HB 353 aligns with the cooperative model that CNE promotes—allowing nonprofits to leverage shared resources to strengthen operations while remaining mission-focused. Supporting HB 353 is an investment in the future of Virginia’s nonprofit sector. Even volunteer-driven organizations need policies that support sustainable growth and workforce development. This bill would help ensure that when nonprofits are ready to take the next step, access to affordable health coverage is not a barrier. I respectfully urge legislators to support HB 353 and consider its long-term impact on nonprofits serving vulnerable populations across the Commonwealth.

I am writing to encourage your support of HB 353 to expand the types of nonprofit entities eligible to serve as a sponsoring association for a benefits consortium. As a longtime nonprofit employee and director, I've seen firsthand how difficult it is for small 501(c)(3) organizations to provide health insurance coverage to employees. In this difficult time where government cutbacks have led to drastic cuts in essential human services, nonprofits have become the backbone of our social support system. To do their work nonprofits need to keep talented employees, but if they can't offer healthcare benefits they often lose talented candidates to large employers and corporations. For four years, I served as an executive director for a nonprofit that ran a sober-living home for women. During that time, I saw how difficult it was to serve women in need of safe, supported living without providing healthcare benefits to our employees. It simply wasn't tenable to purchase insurance for an organization with 3 staff members and employees simply can't afford the high prices on the insurance marketplaces without assistance, so good job candidates often opted to work for larger employers. I hope you will support this legislation and help ease the burden that unaffordable and unattainable health insurance is placing on our essential nonprofit organizations -- and show your support for individuals who want to do meaningful work to help their communities, especially as the government is opting out of doing that work itself.

As organizations dedicated to caring for others, we are increasingly constrained by the astronomical cost of health care, which makes it difficult to provide even basic coverage for our own staff. This undermines our ability to live our missions and uphold core values of respect, dignity, health, and well-being. No organization serving the public good should be forced to choose between sustaining its work and ensuring access to essential health care for the people who make that work possible. We urge your support for this bill so that mission-driven organizations can offer meaningful health coverage, strengthen their workforce, and continue serving our communities with integrity and care.

As a member of the governing board of three non-profit organizations, and as an employee of another non-profit organization, I am painfully aware of the difficulty of providing health insurance coverage to such organizations' employees. The passage of HB 353 would allow such organizations to partner with each other and compete in the insurance marketplace. Particularly in a time when federal subsidy support for ACA plans has been compromised, this is a common sense, market based piece of legislation to allow our employees to be cared for as we care for our communities. Please support this needed legislation

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. Thank you.

Dear Members of the Committee, Thank you for the opportunity to submit written public comment on HB 353, a bill that would expand eligibility for nonprofit organizations to form health benefits consortiums in Virginia. I write in strong support of this legislation. HB 353 proposes a targeted amendment to §38.2‑3431 of the Code of Virginia, adding 501(c)(3) charitable organizations to the types of nonprofits permitted to serve as a “sponsoring association” for a benefits consortium. Under current law, only 501(c)(5) and 501(c)(6) organizations may do so. Expanding eligibility to include 501(c)(3) organizations would open the door for thousands of nonprofit workers to gain access to more affordable and competitive health coverage options. Many nonprofits - especially small and mid‑sized organizations - struggle to offer robust health benefits because they lack bargaining power in the insurance market. Allowing charitable organizations to participate in benefits consortiums would enable them to pool risk, reduce premiums, and strengthen their ability to recruit and retain staff, ultimately stabilizing the nonprofit workforce that provides critical services in communities across the Commonwealth. This is a technical change, but one with significant real‑world impact. By expanding consortium eligibility, the General Assembly would empower more nonprofits to offer health coverage and ensure that those who dedicate their careers to serving Virginia’s communities have access to the benefits they need and deserve. For these reasons, I respectfully urge you to support HB 353. Thank you for your consideration and for your commitment to the wellbeing of Virginia’s nonprofit workforce. Sincerely, ~Mark Deutsch