Why does cybersecurity matter so much to nonprofit donors?
Cybersecurity matters to nonprofit donors because they share sensitive information with the charitable organizations they support. Consider the data involved in a standard donation. The average donor gives their full name, address, email, phone number, and banking information to their chosen charitable causes, at a minimum. If this information isn’t secure, donors may not trust nonprofits.
A comprehensive cybersecurity policy reassures your donors that you value the trust they place in your organization to effectively use their funds to create positive change. Strong data governance also reduces your risk of cyberattacks and data leaks, improving overall operational stability.
This article explores the importance of donor data security for nonprofits, along with tips to strengthen your organization’s cybersecurity today.
The importance of cybersecurity for nonprofits
Nonprofits are prime targets for cyberattacks because they manage large amounts of sensitive financial and contact data, often with limited IT budgets. A single breach can erode donor trust and damage your long-term fundraising pipeline. Implementing a clear cybersecurity policy enables you to:
- Protect sensitive donor information. Cybersecurity practices prevent data breaches and ensure that confidential donor records and financial assets remain secure from malicious actors.
- Preserve your organization’s reputation. By keeping donor data secure, your organization can maintain donor trust and uphold a positive reputation in the community.
- Maintain uninterrupted service delivery. Ransomware and network attacks can paralyze your daily operations. Strong security protocols keep your systems up and running, ensuring you can continue to create positive change.
While the threat of a cyberattack can feel overwhelming, safeguarding your organization doesn’t require an enterprise-level IT department. Drastically reducing your risk starts with implementing foundational, highly actionable security protocols. Here are practical steps your nonprofit can take right now to proactively secure your systems and protect your donors.
3 steps to improve your nonprofit’s cybersecurity practices
1. Evaluate your existing data security protocols.
Before you can create an effective data management system, you need to determine the security of your current system. Assess your constituent relationship management (CRM) and any other places where you store donor data to identify and resolve any vulnerabilities.
During this process, you may:
- Audit current user access. Review who has administrative access to sensitive donor data. Restrict access to departments that actually use those systems, and offboard former employees and volunteers.
- Implement multi-factor authentication. Require a second form of verification each time team members log in. Multi-factor authentication reduces the risk of unauthorized users accessing your network and helps keep your data secure.
- Standardize your data entry processes. Create an established practice for data entry, such as formatting all phone numbers as (XXX) XXX – XXXX. Standardized data helps your team flag discrepancies quickly and improves your ability to gather insights.
Once these foundational measures are in place, establish a data retention policy to dictate how long you store constituent information. Routinely purge or archive outdated donor records and legacy payment details to reduce the information available to potential cyber threats.
2. Educate staff on AI-driven cybersecurity threats.
The rapid evolution of AI in fundraising has made cybersecurity a highly pertinent issue for development teams. While AI use can provide administrative support for your staff, it can also equip malicious actors with sophisticated tools to bypass your security measures.
Make sure your team is educated on AI data governance best practices and knows how to:
- Identify sophisticated phishing. Teach development officers how to spot AI-generated emails that mimic legitimate vendor invoices or major donor inquiries.
- Execute their specific role in your incident response plan. Educate every team member on exactly who to contact and what immediate steps to take if they realize they accidentally clicked a malicious link. For example, the first step might be to disconnect their laptop from the network to prevent the threat from escalating.
- Safely interact with public generative AI tools. Forbid staff from pasting personally identifiable information (PII), such as donor wealth screening data, giving histories, or private contact details, into public AI platforms. Staff must understand that inputting sensitive constituent information into open AI models inadvertently exposes that data to external servers.
Ultimately, your security infrastructure is only as resilient as your team’s daily habits. By fostering a culture that continuously educates staff, encourages them to verify unusual requests, and trains them to report mistakes without fear of immediate retaliation, you can turn your team into an effective safeguard against AI-driven threats.
3. Use secure communication channels and outreach.
Unsecured communication channels are often a nonprofit’s most vulnerable entry points for hackers. To protect your donor data and preserve trust, you must control how you transmit information both internally and externally.
Start securing your communication channels by:
- Authenticating your email domain to prevent spoofing. Hackers often impersonate nonprofits to trick donors into sending fraudulent payments. Work with your IT provider to configure Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) records for your organization’s domain. This invisible backend security prevents bad actors from sending emails that look like they came from your organization. As a bonus, it also improves your email deliverability rates for actual fundraising appeals.
- Encrypting sensitive files. Instead of attaching major gift agreements or tax receipts directly to an email, require staff to use an encrypted document-sharing portal. This ensures confidential data is only accessible through authenticated links rather than sitting in exposed inboxes.
- Banning the use of personal devices for donor communication. It is common for major gift officers or volunteers to text donors from their personal phones, which can leave sensitive data sitting in unmanaged, unencrypted SMS inboxes. Use a cloud-based encrypted messaging system or your CRM’s native texting tools for all phone-based outreach to ensure communications are securely logged within your server.
- Requiring independent security proof from software vendors. When evaluating mass communication platforms, text-to-give tools, or your CRM, don’t just accept their marketing site’s promise of security. Require them to provide a recent SOC 2 Type 2 report. This is a rigorous, independent audit that proves the software company consistently maintains strict data privacy and security protocols over an extended period.
Securing these everyday communication channels eliminates subtle vulnerabilities and protects sensitive information at every touchpoint. When you communicate these changes to donors, such as explaining to a major donor that you now use a secure portal for tax receipts, you can further instill trust in your organization and prove that donor data privacy is a top priority.
Nonprofit Cybersecurity FAQs
What are the most common cyber threats that nonprofits face?
The most common cyber threats nonprofits face include phishing attacks, data breaches and leaks, and malware attacks.
AI systems have also posed new threats to nonprofits. When nonprofits share sensitive data in public AI servers, they risk exposing donor information outside their organization.
How can nonprofits improve their cybersecurity on a limited budget?
Improving your cybersecurity doesn’t have to be expensive. Some tools and procedures to safeguard your systems include:
- Multi-factor authentication
- Password management software
- Access restrictions on key databases
- Anonymization of data before insertion into AI engines
- Automated data entry and tracking to minimize errors and duplicate data
What is the most important first step to prioritize nonprofit cybersecurity?
The first step to securing your data systems is to conduct a baseline risk assessment. This helps your team identify current security procedures, gaps for improvement, and the next steps you should take to protect your data.
Each quarter, run a safety audit to ensure your systems haven’t developed new weak points. Regular upkeep reduces the likelihood of needing a large-scale safety overhaul and ensures you have a strong policy to address any leaks in a timely manner.
Strong data privacy and governance policies protect your ability to fulfill your mission and honor the trust your supporters place in your organization. Start your data privacy journey today, and plan for future growth when designing your security systems. That way, your organization can scale comfortably and create more positive change while protecting every supporter’s data.
Author: Jay Love
Co-Founder and current Chief Relationship Officer at Bloomerang
He has served this sector for 33 years and is considered the most well-known senior statesman whose advice is sought constantly. He is a graduate of Butler University with a B.S. in Business Administration. Over the years, he has given more than 2,500 speeches around the world for the charity sector and is often the voice of new technology for fundraisers.
