Cybersecurity for Nonprofit Organizations

Nonprofit organizations face increasing cybersecurity threats. The combination of valuable donor information, personal information and sensitive program details presents an enticing target to cyber criminals. Most nonprofits have limited IT resources and often rely on managed service providers for IT support. Cyber criminals are increasingly targeting nonprofits, viewing them as soft targets with less IT savvy staff.  Approaching cybersecurity from a loss prevention perspective can help nonprofits proactively reduce risk, protect their reputation, and maintain donor trust.

Understanding cyber risk in the nonprofit sector

Nonprofits are at risk from the same threats as large corporations – phishing, social engineering, ransomware, business email compromise, and data breaches. The impact to a nonprofit can be far more disruptive and damaging than for a corporation. A successful cyberattack may halt critical services, disrupt fundraising or revenue, or even cause a loss of public confidence.

Beyond operational disruption, financial and reputational damage can be significant. Nonprofits receiving funding from large organizations or the government may have their access removed and forced to prove remediation before being reinstated. Compromised donor information can lead to decreased contributions or regulatory scrutiny. Cyber insurance can help soften the blow but may not cover the full impact.

Think in terms of loss prevention

Loss prevention requires a combination of preventative, detective, and recovery techniques to reduce the risk and potential impact. It requires a combination of anticipating risks, implementing safeguards before an incident occurs, and adopting a mindset seeing cybersecurity as a strategic, organization-wide responsibility.

Preventative measures, like multi-factor authentication and strong encryption, help prevent an incident in the first place. Wherever possible, we always want to use preventative measures. We also need detective techniques; in case an attacker overcomes our preventative measures – and a motivated attacker will eventually overcome our security controls. These controls alert us when “something goes bump in the night” so we can track it down and remove it before causing damage. Finally, in the worst case scenario, recovery techniques are then used to restore operations.

Five key loss control measures for nonprofits

1. Understand the Environment – document the physical and logical boundaries of the environment.  Keep an inventory of the hardware and software. Identify the sensitive data in the environment, the data flow through the environment, who has access to it, and the control points used to protect the data.
2. Cybersecurity Awareness Training – train staff and volunteers how to recognize phishing attempts, use secure passwords, and avoid common traps. Make it fun – gamify the training wherever possible.
3. Basic Technical Safeguards – Implement multi-factor authentication (MFA), encryption for sensitive data, and regular patching of software and devices.
4. Vendor and Cloud Security Review – Nonprofits frequently use third-party platforms for donations, communications, and file sharing. Ensure those services have security controls in place to protect sensitive information.
5. Incident Response and Disaster Recovery Planning – Even a simple, documented response plan can save critical time during a major incident. Conducting tabletop practice sessions reduces the stress during an actual event.

AI: A new frontier for nonprofit cyber risk and defense

Artificial intelligence (AI) offers nonprofit organizations valuable tools to strengthen cybersecurity. AI-powered solutions can monitor and identify unusual behavior, filter phishing emails, and assist with donor fraud detection. AI tools can help lean IT teams dealing with large environments and the large quantity of data produced by IT and cyber tools. 

However, threat actors also use AI. Sophisticated phishing emails, deepfake social engineering, and malware variants designed by AI now pose risks even to small organizations. Nonprofits must remain aware of how AI can be both a tool and a threat.

Best practices for safe AI use include:

• Vetting AI-powered tools for data security
• Training staff on how to identify AI-generated scams
• Using AI as a supplement—not a replacement—for human oversight

Final thoughts

Nonprofits are mission-driven, but without sound cybersecurity practices, their missions are at risk. By adopting a loss prevention control mindset, organizations can better protect their data, finances, and reputations. Through strategic investment in people, process, and technology—including the responsible use of AI—nonprofits can continue to serve their communities securely and with confidence.