Nonprofits face unique challenges with cybersecurity

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.

For-profit businesses frequently have established teams, robust cybersecurity frameworks, and regulatory requirements related to cybersecurity controls to guide them. But nonprofits often face a distinct set of considerations when it comes to cybersecurity. How nonprofits respond to these challenges has a direct impact on the strength and resiliency of their cybersecurity platforms.

Different datasets and regulatory requirements

A key difference between nonprofit and for-profit organizations is 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 manage donor details such as contact information, demographic data and wealth indicators. This type of information does not always require the same level of oversight as information managed in highly regulated industries.

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.

Nonprofits should not assume that bad actors will ignore them simply because they don’t have billions in assets or protected health information that may be in high demand. Many hackers might prey on nonprofits because they are perceived as softer targets than their for-profit counterparts.

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 distribute 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 so crucial to an organization’s very existence.

Information technology and information security are separate capabilities and require different skill sets. IT professionals focus on supporting the technology infrastructure, providing technical support, and maintaining hardware, software and application assets. Information security professionals focus on protecting sensitive information from unauthorized access or disclosure of these assets.

Best practices

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 criticality.
• Employee awareness and training: Nonprofits often release information publicly as part of their outreach efforts, which can inadvertently expose them to cyberthreats. Organizations need to be mindful about what they're exposing on the internet, including fundraising information, the names of employees who could be used as targets, and so on. Nonprofits should invest in cybersecurity training for staff members, even if budgets are tight, and ensure that every employee and volunteer understands basic cybersecurity protocols as the organization’s first line of defense. All employees should be responsible for protecting company information.
• Leveraging resources: While many nonprofits lack the resources for extensive cybersecurity training, there are free and low-cost options available. For example, cybersecurity insurance brokers commonly offer free or discounted training, and organizations like the SANS Institute provide valuable educational resources. In addition, both the National Institute of Standards and Technology Cybersecurity Framework and the Center for Internet Security Critical Security Controls offer 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. 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. This interconnectedness, particularly in a cloud-based environment, introduces new risks. 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 who may be 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 to a successful future.