As a modern nonprofit leader, your primary focus is advancing your missionโbut have you considered how data privacy fits into that goal? In todayโs digital world, protecting sensitive information is essential to maintaining trust and avoiding disruptions that can derail your work. A single data breach could compromise everything you’ve built.
The good news is that you donโt need to be an IT expert to safeguard your organization. With a few proactive strategies, a modern nonprofit can handle sensitive data responsibly and protect both its operations and its community from risk.
Understanding the Threats You Face
Nonprofits all over the world face two distinct types of threats. The first is external. This is carried out by cybercriminals stealing data to commit fraud.
The other threat comes from within. Data from IBM indicates that malicious internal threats account for only about 7% of breaches, but they also cost the most to recover from. Current or former employees can steal co-worker or donor data, either with the intent to extract money or in retaliation for a perceived injustice.
4 Strategies for Mitigating Data Privacy Threats
Once you understand the potential threats to your data, here are the critical steps you need to take to protect your organization from bad actors.
1. Conduct a Risk Assessment
Before you can adequately mitigate data privacy threats, you need to know where the most significant loopholes lie in your network and your organization. First, speak with an attorney who can advise you on current data security regulations and your obligations under the law. Then, review your practices for compliance. These include:
- Recordkeeping
- Access control protocols
- Password policies
- Data encryption capabilities
- Business continuity plans
- Data destruction methods
Create a concrete plan (complete with timelines) for fixing any vulnerabilities you find to limit your risk for penalties and data breaches.
2. Ensure Adequate Employee Training
IBMโs data shows that human error accounted for 22% of breaches in 2024. There is clearly a significant need to train nonprofit employees on how to avoid the mistakes that lead to these crises.
If you have an in-house IT team, there should be proper training on how to install, configure, and maintain software and technology so that there are fewer system loopholes to exploit. All staff should be trained to recognize phishing emails and dubious websites and to know what steps to take if they believe data has been compromised.
3. Invest in Cybersecurity Software
No matter how robust your employee training program is, there will still be mistakes. Perhaps that phishing email seemed a little too real, or your policy hadnโt accounted for new cybercrime tactics.
Whatever the case, cybersecurity software can provide layers of additional protection. These programs work around the clock to detect unauthorized users and programs on your network, quickly isolate and block them, alert your team to new threats, and restore any lost information.
4. Avoid Unnecessary Data Collection
One way to limit your data breach risk is to limit the data you possess. When possible, try to avoid collecting more data from employees, board members, and donors than you truly need for a particular task. The more sensitive details you can keep out of your database, the less hacking will appeal to cybercriminals.
This may require opting out of software features. Additionally, make your donors aware of what data you collect and how you protect their privacy. This helps to build trust and ensure compliance with privacy laws.
Keep Your Data Private and Your Organizationโs Future Secure
Data breaches have grave consequences for both organizations and stakeholders. Just one data privacy oversight can cost you dearly in terms of penalties and donor trust.
If youโre searching for ways to secure your organizationโs financial future, our team at Ernst Wintter & Associates LLP can help. Contact us today to discover the value of our nonprofit audit services and learn how we can devise a solid plan to ensure your ability to continue the mission.
Why Choose Us
Financial Expertise for the Modern Nonprofit
At Ernst Wintter & Associates LLP, we understand the evolving challenges faced by todayโs modern nonprofit organizations. From increased donor expectations to enhanced reporting standards and data privacy concerns, nonprofit leaders must balance mission-driven work with complex financial responsibilities. Thatโs where we come in.
Based in Walnut Creek, CA, our firm brings years of experience delivering trusted tax, audit, and accounting services to nonprofits across California. We pride ourselves on our professionalism, integrity, and commitment to exceptional client service. Our goal is to help modern nonprofits thrive by providing clear, compliant, and strategic financial guidance.
Our clients are at the heart of everything we do. We take the time to understand each organizationโs unique goals and challenges, offering personalized solutions that support both daily operations and long-term sustainability. Whether you need assistance with annual audits, compliance with IRS and state regulations, or strategic planning for growth, our team is equipped to meet your needs efficiently and accurately.
Weโve built a well-balanced team of professionals with extensive experience serving nonprofit organizations. From community-based charities to advocacy groups and foundations, our firm supports organizations of all sizes and missions. Our accountants go above and beyond standard requirements by participating in continuing education to stay current with the latest nonprofit regulations, reporting changes, and industry best practices.
We believe in building strong partnerships grounded in transparency and trust. Our proactive approach ensures your organization remains compliant while gaining the clarity needed to make informed financial decisions.
To learn more about nonprofit financial best practices, we recommend reviewing the National Council of Nonprofits resources.
When youโre ready to work with a firm that understands what it takes to support a modern nonprofit, Speak with an Expert at Ernst Wintter & Associates LLP. Weโre here to help you move your mission forward with financial confidence.
