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Nonprofits Deal with Federal Government Shutdown

Independent Sector Issues Guidance
October 1, 2025

As of midnight, appropriations for the operation of the federal government lapsed, preventing the expenditure of money except under particular circumstances. This is likely to cause a delay on disbursement of grants and contracts, and the approval of pending applications for exempt status. And nonprofits may see a dramatic uptick in requests for services.

The Independent Sector issued a guidance document for what this might mean for nonprofits.