Cybersecurity: A Crucial Concern for Nonprofits

Cybersecurity is a noteworthy concern for organizations in every industry, across all sectors, and in every geographic region. Protecting digital assets is crucial for every organization, but the challenges faced by nonprofits can be particularly daunting. While for-profit businesses often have established teams, robust cybersecurity frameworks, and regulatory requirements to guide them, nonprofits frequently operate under a distinct set of considerations. How nonprofits respond to these challenges directly impacts the strength and resiliency of their cybersecurity platforms.

Different Datasets and Regulatory Requirements

A key difference between nonprofit and for-profit organizations lies in the type of data they manage. For-profit organizations often handle sensitive, highly regulated financial information, such as credit card numbers or personal health data. In contrast, nonprofits typically manage donor details, including contact information, demographic data, and wealth indicators. While this type of information may not always require the same level of oversight as that in highly regulated industries, it is still vulnerable to cyber threats.

Without the pressure of compliance requirements, some nonprofits may inadvertently neglect necessary cybersecurity measures and controls that can protect them from bad actors and attack vectors. It is a common misconception that hackers will overlook nonprofits simply because they lack the vast resources of larger corporations. In reality, many hackers view nonprofits as softer targets, making them susceptible to cyberattacks.

Resource Constraints

One of the most significant challenges nonprofits face when implementing cybersecurity measures is budgetary constraints. Unlike their for-profit counterparts, nonprofits often operate with much smaller information technology budgets and leaner teams that are asked to do more with less. This limitation forces many nonprofits to make difficult decisions about how to allocate their time and money.

For some nonprofits, cybersecurity becomes an additional duty for the organization’s IT team. However, this approach is far too casual for an aspect of modern business that is crucial to an organization’s very existence. Information technology and information security are separate capabilities that require different skill sets. IT professionals focus on supporting the technology infrastructure, providing technical support, and maintaining hardware, software, and application assets. In contrast, information security professionals concentrate on protecting sensitive information from unauthorized access or disclosure.

Best Practices for Nonprofits

Despite these challenges, nonprofits can adopt certain best practices to strengthen their cybersecurity posture:

Data Classification

Organizations should implement a data classification program to identify and protect their most critical assets. Nonprofits need to understand the types of data they possess and where it is located. This requires the creation and management of a data inventory that tracks where data is stored, processed, transmitted, or accessed within the environment. Organizations should then apply security controls according to the criticality of the data.

Employee Awareness and Training

Nonprofits often release information publicly as part of their outreach efforts, which can inadvertently expose them to cyber threats. Organizations need to be mindful of what they are exposing on the internet, including fundraising information and the names of employees who could be targeted. Investing in cybersecurity training for staff members is essential, even if budgets are tight. Every employee and volunteer should understand basic cybersecurity protocols, as they represent the organization’s first line of defense.

Leveraging Resources

While many nonprofits lack the resources for extensive cybersecurity training, there are free and low-cost options available. Cybersecurity insurance brokers often provide free or discounted training, and organizations like the SANS Institute offer valuable educational resources. Additionally, both the National Institute of Standards and Technology Cybersecurity Framework and the Center for Internet Security Critical Security Controls provide flexible, risk-based approaches that can be scaled to fit the specific needs of nonprofits.

Managed Security Service Providers (MSSPs)

Another option for nonprofits is to turn to third parties to handle their cybersecurity needs. Managed Security Service Providers (MSSPs) offer monitoring and administration of an organization’s security devices and systems. Outsourcing allows nonprofits to access expertise without the expense of building an in-house security team.

However, outsourcing introduces its own risks, particularly around sharing sensitive information with third parties. Hiring an MSSP means opening up an organization’s networks to other entities, which can introduce new vulnerabilities, especially in a cloud-based environment. Nonprofits must not only vet their direct vendors but also understand the risks associated with those vendors’ suppliers and the potential downstream impact on the organization.

To mitigate these risks, nonprofits should ensure they have robust third-party risk management practices in place. This includes knowing who their vendors are, what data they have access to, and whether they are working with any offshore entities or those located in geopolitically sensitive regions.

The Takeaway

Cybersecurity is a growing concern for nonprofits, which must navigate unique challenges related to their data, budgets, and regulatory environment. By adopting tailored strategies, embracing best practices, and leveraging external resources, nonprofits can build a cybersecurity platform that protects their critical assets and supports their mission.

While the road may be challenging, creating a strong cybersecurity system is essential for safeguarding donor trust, protecting organizational integrity, and guiding the nonprofit toward a successful future. In an increasingly digital world, the importance of cybersecurity cannot be overstated, and nonprofits must prioritize it to thrive in their vital roles within society.