The Trump administration has vowed to continue fighting to withhold full food stamp benefits to states during the government shutdown, after a lower court order last week required it to use $4 billion from another fund to full pay for SNAP benefits, according to CNN reports.
As millions of Americans face uncertainty over federal food assistance, nonprofits and religious organizations are once again serving as a critical safety net. In the process, they are shouldering mounting operational and risk management challenges.
The combined effects of the ongoing government shutdown and the Trump administration’s attempts to roll back Supplemental Nutrition Assistance Program (SNAP) benefits have left states and aid providers scrambling. With nearly 42 million Americans depending on SNAP and millions more still awaiting November payments, food pantries, churches, and community kitchens are seeing demand soar to crisis levels.
For those on the front lines, this surge in need brings significant new exposures, ranging from food safety and volunteer management to cybersecurity and liability.
“The need is just extreme right now,” said Sarah Veader, AVP of Risk Control at Church Mutual Insurance Company. “Ensuring that organizations are prepared, not only with food, but with staff, volunteers, and logistical plans, is going to be critical to support their communities through this time.”
Veader noted that across the country, food distribution lines are stretching for miles. Nonprofits that typically manage small, steady flows of donations and volunteers are suddenly being inundated with both. The operational strain can quickly amplify exposures, especially slip-and-fall hazards, warned Veader.
As organizations scale up quickly to meet demand, the influx of new or untrained volunteers introduces another layer of concern. One of the most critical steps to mitigate risks associated with volunteers is to have strong training and safety culture.
“Having an orientation, even a brief one, is important,” Veader stressed. “Pair new volunteers with experienced ones, and make sure everyone understands safety basics like lifting practices and emergency procedures.”
With increased donations, including perishable goods, nonprofits are also seeing heightened exposure to food spoilage and contamination. Maintaining temperature control, sanitation, pest management, and personal hygiene standards can be challenging when facilities are overburdened or understaffed.
Spoiled or contaminated food can lead to serious health incidents, reputational damage, and costly liability claims, especially for organizations operating under public scrutiny during times of crisis.
“Some donations come close to their expiration dates,” Veader said. “Tracking those items carefully and practicing ‘first in, first out’ rotation is crucial. Good food safety practices have to stay top of mind, even in times of high demand.”
As donations and volunteer participation rise, nonprofits are also managing more sensitive information, such as donor financial data and volunteer personal details. This makes them increasingly attractive targets for cybercriminals.
“More donations mean more transactions and more data moving through systems,” Veader explained. “Encryption, password protection, software updates, and staff training are all essential. Even simple steps, like securing Wi-Fi and enforcing password policies, can make a big difference.”
For small or resource-strapped organizations, Veader suggested tapping into free or low-cost cybersecurity resources available through insurance carriers, trade associations, and nonprofit support networks.
“You don’t need a big IT department,” she said. “There are plenty of programs designed for nonprofits that can help improve data protection at little or no cost.”
Beyond physical and cyber risks, Veader warned of an often-overlooked threat: burnout among staff and volunteers. As demand continues to climb and resources are stretched thin, maintaining morale and mental health becomes increasingly difficult.
“If volunteerism decreases or donations slow, that puts even more pressure on staff,” she said. “We need to think about how to support them physically and mentally. Burnout is a real risk, and it affects safety and service quality.”
At the same time, she stressed the importance of empathy in service delivery, particularly for clients seeking food assistance for the first time.
“A lot of guests right now aren’t used to being in need,” she said. “Treating everyone with compassion and respect is critical, even during stressful times. It’s not something you capture in claims data, but it’s an important part of risk management.
As the operational footprint of food aid programs expands, insurers and brokers will need to reassess coverage adequacy and underwriting assumptions. Increased activity may lead to new property, liability, and cyber exposures.
However, risk management doesn’t have to be complicated for nonprofits and faith-based organizations. Veader emphasized that simple, consistent practices often make the biggest difference.
“Keep walkways clear, have hand trucks available, lift safely… these are the basics,” she said. “Sometimes organizations overthink it, but it’s really about pausing, taking a step back, and reviewing what’s working and where the gaps are.”
She also encouraged organizations to lean on their insurance partners and available resources.
With the SNAP crisis and shutdown continuing to unfold, the sector’s resilience will be tested in the months ahead. For now, preparedness and compassion remain the most valuable tools.
“Ultimately, these organizations are doing incredible work under pressure,” she said. “By taking a little time to review controls, support their people, and plan ahead, they can continue serving their communities safely and effectively.”
