As with many other organizations, cybersecurity has become a top priority for nonprofits. However, many nonprofits struggle with cybersecurity, leaving them vulnerable to various cyber threats. From data breaches to ransomware attacks, nonprofits are facing increasing risks. For nearly three decades, Exigent has provided cybersecurity for nonprofit partners, learning lessons all along the way. We'd like to share nonprofit cybersecurity best practices and explain why nonprofit IT security is crucial to the success of these important community organizations.
Cybersecurity Challenges For Nonprofits
Cybercriminals often target nonprofits due to vulnerabilities – perceived and real – in nonprofit cybersecurity risk management strategies. Nonprofits typically operate with limited budgets, which can prevent them from investing in sophisticated cybersecurity tools and resources. Additionally, nonprofits are tasked with both donor privacy and cybersecurity, as well as compliance. With valued data such as donor information and banking details stored in their IT environments, nonprofits are highly lucrative targets for hackers.
Nonprofits are not immune to the types of cyberattacks seen in other sectors. But they face certain specific risks:
- Phishing Attacks: Cybercriminals use phishing emails to trick nonprofit employees or volunteers into providing sensitive information.
- Ransomware: Attackers can lock an organization's data and demand a ransom for its release.
- Data Breaches: Nonprofits often store personal information, including donor details, which can be exposed during a breach, leading to a complete loss of trust in the organization.
As the frequency and sophistication of these attacks increase, nonprofits must understand that being small or mission-driven does not exempt them from cyber threats.
Download our ebook on nonprofit cybersecurity best practices
The Financial Impact of Cybersecurity on Nonprofits
Cybersecurity data breaches can have a devastating financial impact on nonprofits. A breach can lead to significant monetary losses, including regulatory fines and legal fees. Additionally, the cost of responding to a cyberattack — including forensic investigations, system restorations, and potential ransom payments — can be substantial.
Nonprofits also risk losing trust with donors and stakeholders, who may withdraw their support if they believe the organization cannot safeguard their information and the nonprofit's information security posture is weak. This can lead to a long-term loss of funding, damaging a nonprofit's ability to fulfill its mission.
Nonprofit Cybersecurity Compliance Considerations
Nonprofits are required to comply with various data protection laws and regulations. These may include the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), or the Health Insurance Portability and Accountability Act (HIPAA), depending on the type of data they handle and where they operate. Any nonprofit that accesses credit cards or other payments faced additional compliance standards. Often regulatory compliance agencies expect or demand cybersecurity audits for nonprofits as well as security awareness training, both of which can add to the budgetary burden already faced by many organizations. However, failure to comply with these regulations can result in fines, legal repercussions, and reputational damage. Therefore, nonprofits must understand and adhere to the relevant legal frameworks governing their operations.
Building an Affordable Cybersecurity Strategy for Nonprofits
To protect themselves from cyber threats, nonprofits should adopt a comprehensive cybersecurity strategy. Below are essential steps nonprofits can take:
- Conduct cybersecurity and compliance risk assessments
- Offer cybersecurity awareness training for staff and volunteers
- Implement multi-factor authentication (MFA) as well as create standard cybersecurity policies for passwords and accepted usage of nonprofit technology assets
- Consider cloud-based security for more affordable cybersecurity protection
- Create a schedule for software updates and patching as well as a roadmap to replace legacy technology
- Backup critical data as part of a detailed plan for handling ransomware threats
Cyber Insurance for Nonprofits
Cyber insurance can offer financial protection in the event of a cyberattack. Policies often cover the costs associated with breach recovery, legal fees, and even ransom payments in some cases. However, nonprofits should carefully review their policies to understand the extent of their coverage and ensure it meets their specific needs. Working with a cyber insurance expert who has experience in the nonprofit sector is another way to gain access to not only the correct coverage but also industry best practices.
While cyber insurance is not a substitute for a robust nonprofit cybersecurity plan, it can be a valuable safety net for organizations that find themselves the target of an attack.
Download our cyber insurance webinar on-demand to learn more
Collaboration and Resource Sharing For Affordable Cybersecurity Solutions
One of the strengths of the nonprofit sector is its collaborative spirit. Nonprofits can benefit from sharing resources and best practices related to cybersecurity. Several organizations, such as the National Council of Nonprofits and the CyberPeace Institute, offer guidance and tools to help nonprofits enhance their cybersecurity posture. By leveraging these resources, nonprofits can stay informed about the latest threats and nonprofit cybersecurity strategies without having to bear the full cost of developing these systems independently.
Leveraging Exigent Managed Service for Nonprofit Cybersecurity
Cybersecurity is not just a concern for large corporations — it is an essential aspect of running a nonprofit in today's digital world. From protecting donor data to ensuring compliance with legal regulations, nonprofits have much to lose if they fail to secure their systems. Exigent collaborates with its nonprofit clients to ensure their technology is designed securely and then monitored and maintained to lessen the threat of a cyber attack. We work to deliver right-sized cybersecurity solutions for nonprofits and offer security awareness training as well as best practices from across the nonprofit sector.
By prioritizing cybersecurity, nonprofits can protect their missions, their data, and their reputations. With the right strategies and resources in place, nonprofits can mitigate the risk of cyberattacks and continue their vital work without unnecessary disruption. Learn how Exigent can help.
