The role of donors and nonprofits during a government shutdown
Oct 10, 2025
The federal government entered a shutdown on October 1, 2025, after Congress did not pass legislation to extend government funding prior to the end of the current fiscal year.
In the wake of a government shutdown, a number of federal employees will be furloughed, and non-essential programs and services may halt. Workers deemed essential, like active-duty military service members, are required to work without pay until the shutdown is over. Some federal programs may have enough available funds to continue operating, but their reserves may deplete depending on the length of the shutdown.
During this time, many nonprofits may be determining how they’ll help fill the gaps left by federal agencies. Vanguard Charitable donors can be key partners in making the greatest difference during uncertain times.
Funding impacts of a government shutdown
If you want to support organizations that are stepping up to serve affected communities, below are some government programs and services that may see operational interruptions and subsequently impact various communities nationwide.
The Special Supplemental Nutrition Program for Women, Infants, and Children and the Supplemental Nutrition Assistance Program will continue services, but they are "subject to the availability of funding,” the Department of Agriculture said. A drawn-out shutdown could mean funding may run out for both programs.
Regional offices for the Department of Veterans Affairs will close, and some services may be suspended.
As mandated by law, the Social Security Administration (SSA) will continue issuing benefits. However, a tightened workforce could mean that the processing of new Social Security applications could be delayed. In fiscal year 2024, more than 3 million Americans filed a claim with the SSA, a 13% jump from the previous year.
The Department of Health and Human Services, which houses the Centers for Medicare and Medicaid Services, the Centers for Disease Control and Prevention, and the Food and Drug Administration, said 40% of its 80,000 workers will be furloughed during the shutdown. As a result, many research contracts and grants to external organizations like universities may freeze.
While the Federal Emergency Management Agency will be available to respond to emergencies and disasters, its Disaster Relief Fund, whose budget is subject to congressional appropriations, is said to be running low. Additional funds would need to be approved by Congress.
With nearly 90% of the Environmental Protection Agency’s staff being furloughed, the federal entity will freeze some pollution-cleanup projects.
A Vanguard Charitable donor-advised fund (DAF) is uniquely positioned to respond in times of funding shortages.
In times of economic difficulty and unplanned events, Vanguard Charitable donors are uniquely positioned to help nonprofits providing immediate support by using one of the most flexible and efficient giving vehicles, a donor-advised fund (DAF). Because charitable funds in a DAF are already primed for granting, our donors can offer rapid aid to local or national organizations.
To gift to a charity addressing increasing need in their community, recommend a grant via your secure online account. Some organizations to start with include food banks, nonprofits for veterans, meal delivery services, and local community centers.
