On March 25, 2026, the Greater Washington Society of CPAs hosted the Nonprofit Finance & Accounting Academy in Vienna, Virginia, a focused program for professionals new to the nonprofit sector or looking to strengthen their knowledge of nonprofit accounting, reporting, and compliance . The event covered core topics including revenue recognition, financial reporting, auditing, and tax issues . Key Topics for Nonprofit Finance Professionals The Academy addressed several critical areas for nonprofit finance professionals : Revenue Recognition – The implementation of ASU 2018-08 continues to be a focus area for many nonprofits. The standard clarified when contributions and grants should be treated as conditional versus unconditional, which has significant implications for revenue reporting and donor restriction tracking. Financial Reporting – Nonprofits continue to refine their financial statement presentations, particularly regarding the classification of net assets with donor restrictions and the allocation of functional expenses. Auditing Issues – The Academy addressed emerging auditing issues, including the increased scrutiny of internal controls and the importance of maintaining audit-ready financial records year-round. Tax Issues – Participants explored the latest tax developments affecting tax-exempt organizations. Ask the Experts Panel The Academy featured an “Ask the Experts” panel with seasoned professionals including Tracy Bowers, Managing Director of Outsourced Accounting Services, Not-for-Profit Industry at Cherry Bekaert, and Karl Spanbauer, Controller at Capital Area Food Bank . The panel addressed attendees’ questions on the day’s most pressing topics . Virginia Nonprofit Finance Resources Virginia nonprofits can access additional resources through the Virginia Society of Certified Public Accountants and the Greater Washington Society of CPAs . Best Practices for Nonprofit Finance in 2026 Based on the Academy discussions, nonprofit finance professionals should focus on: Strengthening internal controls – Regular reviews of financial processes and segregation of duties Improving revenue recognition – Properly distinguishing between conditional and unconditional contributions Maintaining audit readiness – Keeping financial records organized and reconciled throughout the year Staying current with tax developments – Monitoring changes that affect tax-exempt organizations Investing in staff training – Ensuring finance staff have current knowledge of accounting standards At Nova Tax & Accounting Services , we provide audit and assurance services and accounting and bookkeeping for nonprofit organizations across Virginia and Washington DC. Schedule your free consultation to discuss your organization’s finance and accounting needs.
Virginia is home to approximately 53,000 registered nonprofit organizations, with major concentrations in Northern Virginia, Richmond, Hampton Roads, and Charlottesville . The Commonwealth’s unique proximity to Washington, DC makes it a natural home for national associations, advocacy organizations, international NGOs, and government-adjacent nonprofits . 1. Incorporate with the Virginia State Corporation Commission (SCC) To form a nonprofit corporation in Virginia, you must file Articles of Incorporation with the Virginia State Corporation Commission (SCC) . The filing fee is $75 . Virginia uses the SCC rather than a Secretary of State for business filings . Annual Report Requirement: Virginia nonprofits must file an Annual Report with the SCC by the last day of the month in which the corporation was formed . The fee is $25 . Failure to file can result in automatic termination of the corporation . 2. Get Your Federal EIN Apply for an Employer Identification Number (EIN) from the IRS — free, takes minutes online . 3. Apply for Federal 501(c)(3) Status File IRS Form 1023 (or 1023-EZ for smaller organizations) . Processing time is typically 3-6 months. The filing fee is $600 for Form 1023 or $275 for Form 1023-EZ . 4. Apply for Virginia Tax Exemption Apply for Virginia sales tax exemption through the Virginia Department of Taxation . This is separate from your federal 501(c)(3) status—you must apply independently . Virginia’s state sales tax is 5.3% (4.3% state + 1% local) with rates up to 7% in some regions . 501(c)(3) organizations are generally exempt from Virginia corporate income tax . Virginia also offers property tax exemptions for qualifying nonprofits in many localities . 5. Register for Charitable Solicitation with VDACS Important: Virginia’s charitable solicitation registration is handled by the Virginia Department of Agriculture and Consumer Services (VDACS) , not the Attorney General . Initial registration: File Form 102 before soliciting contributions . The initial fee is $100 . Annual renewal: Renew annually . The renewal fee is $30 . Exemptions: Religious organizations and those raising less than $5,000 annually may be exempt from registration, provided they don’t use paid fundraisers . However, it’s good practice to register anyway for transparency and credibility with donors . Solicitation disclosures: Virginia law requires charitable organizations to include a specific disclosure statement in solicitation materials informing donors that financial information is available from VDACS . 6. Open a Nonprofit Bank Account in Virginia While Virginia nonprofits can open a business bank account with Articles of Incorporation and an EIN , a dedicated nonprofit account is essential for maintaining tax-exempt status, satisfying donor expectations, and meeting VDACS reporting requirements . Commingling personal and organizational funds can jeopardize your 501(c)(3) status . Documents needed: Articles of Incorporation filed with the Virginia SCC, EIN (IRS CP 575 or 147C), 501(c)(3) determination letter, bylaws signed by board, board resolution authorizing account opening and naming authorized signers, and government-issued photo ID for all authorized signers . Virginia nonprofits with 501(c)(3) status can apply for sales tax exemption and must present their exemption certificate at the time of purchase . Ongoing Compliance To maintain your Virginia nonprofit’s active status: File annual report with the SCC (due by the last day of the month in which your corporation was formed; $25 fee) File IRS Form 990 series annually Renew charitable solicitation registration annually with VDACS At Nova Tax & Accounting Services , we help Virginia nonprofits with Form 990 preparation and compliance with state registration requirements. Schedule your free consultation to discuss your organization’s needs.
Virginia Senate Bill 190, introduced in the 2026 legislative session, imposes significant new requirements on nonprofit organizations seeking to provide student support programs to public school students . The bill addresses growing concerns about student personal information and data security as more nonprofit organizations partner with school districts to deliver services. Overview of SB 190 The bill requires any nonprofit organization seeking to provide student support programs to students enrolled in a public elementary or secondary school to register and maintain status as a certified student support agency . This certification is required before a nonprofit can begin providing services to students. Certification Requirements To register and maintain status as a certified student support agency, nonprofit organizations must meet several requirements relating to the protection of student personal information . These include requirements relating to policies, procedures, and protocols for: The collection of student personal information The use and maintenance of student personal information The disclosure of student personal information The disposal of student personal information Handling any data breach or unauthorized disclosure Department of Education Oversight The bill requires the Virginia Department of Education to administer and oversee the certification of certified student support agencies . The Department is responsible for: Developing a model memorandum of understanding for each student support agency and school board establishing authorizations and limitations relating to the transmission, collection, and use of student personal information Establishing and administering a grant program for student support agencies for data security upgrades, training for staff, and third-party audits Establishing and administering compliance monitoring and enforcement mechanisms and subsequent penalties for noncompliance Conducting a regular audit of a certain percentage of registered student support agencies to ensure compliance and establishing provisions relating to consequences for failure of the audit MOU Requirements The bill requires each certified student support agency and school board to execute a memorandum of understanding in accordance with the model memorandum of understanding developed by the Department . Implications for Virginia Nonprofits Nonprofits that provide student support programs—including after-school programs, counseling services, tutoring, mentoring, and other student services—should prepare to comply with these new requirements. Key action steps include: Reviewing current data security policies and procedures Updating policies to meet the bill’s requirements Preparing to complete the certification process Budgeting for potential data security upgrades and training Monitoring Department of Education guidance on the model MOU Data Security Best Practices for Nonprofits Even before the bill takes effect, nonprofits serving students should implement strong data security practices: Encrypt all student data both in transit and at rest Limit access to student information on a need-to-know basis Train staff on data privacy and security protocols Maintain an incident response plan for data breaches Document all data collection, use, and disclosure practices Virginia Nonprofit Data Security Resources The Virginia Department of Education will provide guidance as the certification program is implemented. Nonprofits should also review Virginia’s data breach notification laws . At Nova Tax & Accounting Services , our consulting services can help nonprofit organizations review and strengthen their data security policies and prepare for new compliance requirements. Schedule your free consultation to discuss your organization’s needs.