Nonprofit Cybersecurity Risk Assessment – A Strategic Guide for Nonprofits

Cyberattacks don’t just hit large corporations anymore. Nonprofits are quickly becoming the preferred and easy targets. Financial data, sensitive donor information, communications - there’s so much to lose! 

Many nonprofits still operate without a clear plan, often due to tight budgets and limited staff. But without proper nonprofit risk management, a single data breach could completely derail your mission.

This guide helps you with a clear, step-by-step plan to find your weak spots, protect your data, and stay compliant without overwhelming your team or overspending.

The Growing Cybersecurity Threat for Nonprofits

Nonprofits like yours are built on trust—trust from donors, volunteers, and the communities you serve. But with sensitive data at the core of your operations, you're increasingly in the crosshairs of cybercriminals. Because nonprofits store sensitive information about donors, volunteers, and programs, and the perception of having weaker defenses, they have become prime targets. A single breach can cause a ripple effect:

• Loss of donor trust, which can directly impact funding
• Legal penalties under regulations like GDPR, CCPA, and HIPAA
• Operational disruptions that compromise the nonprofit’s ability to deliver services

The good news? These risks can be prevented. You can take simple steps to protect your nonprofit, starting with a cybersecurity risk assessment that’s part of a broader nonprofit risk management strategy. By spotting weak points early, you can secure your data, your mission, and your community.

Key Cybersecurity Challenges Faced by Nonprofits

There are several barriers and challenges nonprofits face while implementing cybersecurity. 

1. Limited Budgets and IT Resources

Many nonprofits run on tight budgets and small teams. Although the goal is to strengthen cybersecurity, non-profit organizations often face financial constraints that limit what they can implement. This lack of funding directly impacts their ability to:

• Hire dedicated cybersecurity professionals
• Update legacy systems with critical security patches
• Invest in essential protection tools like firewalls and activity monitoring systems

What you can do: Even with limited resources, when it comes to cybersecurity, non-profit organizations can still put strong defenses in place.  Even with these challenges, nonprofit organizations can take practical, high-impact steps to strengthen cybersecurity—by focusing on what matters most and building awareness across the team.

2. Sensitive Data Makes Nonprofits Prime Targets for Cybercriminals

There’s a dangerous myth that nonprofits are “too small” to be worth targeting. The reality is the opposite. Cybercriminals are increasingly drawn to nonprofit organizations because:

• Weaker security defenses compared to corporations.
• Valuable donor and financial data stored in CRMs like Salesforce, HubSpot, and Bloomerang.
• When downtime affects programs or vulnerable communities, nonprofits are more likely to pay ransoms to restore access quickly.

What you can do: Help your team stop believing this myth. Make nonprofit cybersecurity a regular part of how you manage risks. Even small actions like keeping software updated and teaching staff how to spot threats can make your nonprofit much harder to attack.

3. Human Error and Lack of Security Awareness

Technology is only as effective as the people using it. Volunteers, temporary staff, and non-technical team members all play important roles, but they’re also more likely to make mistakes that open the door to cyber threats. Here are a few common risks:

• Phishing emails that trick users into giving away login details
• Weak passwords and no multi-factor authentication (MFA), making it easy for attackers to break in
• One-time or limited training that leaves staff unprepared for new and evolving threats

What you can do: Build a strong culture of security awareness. Train staff and volunteers regularly, not just once. Focus on the basics: spotting phishing emails, creating strong passwords, and enabling multi-factor authentication. These small habits are foundational to data security for nonprofits and can prevent big mistakes.

4. Third-Party Risks: Cloud-Based Platforms and Vendor Security

Nonprofits use external platforms every day to manage donors, run programs, and collaborate across teams. Common tools include:

• Salesforce for Nonprofits- manages donor relationships and program data
• Google Workspace and Microsoft 365- support email and document sharing
• Online donation platforms- handle payment processing

These tools improve efficiency, but they also carry risks. If a vendor fails to follow strong security practices, or if your team sets them up incorrectly, attackers can access your data.

What you can do: Check your third-party tools regularly. Stick with platforms that have a strong security track record. Train your team to set up each tool the right way. Know how each platform stores and protects your data–before any problems come up. Vendor audits are a core part of effective cybersecurity risk assessment for nonprofits.

5. Compliance and Legal Risks

Compliance safeguards your mission, earns trust from donors and partners, and strengthens your reputation. When you gather personal data from donors or beneficiaries, your nonprofit must follow certain laws, such as:

• GDPR (General Data Protection Regulation): This regulation covers the personal data of EU residents
• CCPA (California Consumer Privacy Act): Applies to personal data of California residents
• HIPAA (Health Insurance Portability and Accountability Act): Governs health data for medical or health-related nonprofits

What you can do: Find out which data laws apply to your nonprofit. Set up clear steps to keep donor and beneficiary information safe. Teach your team how to handle data properly, and keep your policies up to date to stay compliant. Staying compliant is a key factor in ensuring long-term data security for nonprofits.

The Nonprofit Cybersecurity Risk Assessment Framework

Cyber threats can feel overwhelming without a full tech team, but a clear, structured approach can help you take control. Follow this step-by-step cybersecurity risk assessment framework to find gaps and strengthen your defenses:

Step 1 – Identify Critical Assets and Data Sensitivity

Before you secure anything, you need to know what you’re protecting. Mapping your digital environment is the first step in any effective nonprofit risk management strategy. Ask yourself these key questions:

• What data do we store? This includes donor information, financial records, personally identifiable information (PII), and volunteer files.
• Where do we store it? Look at platforms like Salesforce, HubSpot, Bloomerang, internal servers, and other third-party tools.
• Who can access it? Think about internal staff, volunteers, consultants, and vendors.
• What systems are mission-critical? Fundraising platforms, communications tools, and finance systems all keep your work running.

Take action: 

Create a simple inventory of your systems and data. Identify sensitive information, map where it lives, and review who has access. This clarity helps guide the rest of your cybersecurity planning.

Step 2 – Assess Cybersecurity Threats and Vulnerabilities

Once you know what you’re protecting, identify what might threaten it. Nonprofits face both technical and human risks. To toughen cybersecurity, nonprofit organizations must account for both technical and human risks. Watch out for these common vulnerabilities:

• Phishing attacks: Weak email filters and untrained staff can fall for fake messages that steal login credentials.
• Outdated systems: Unpatched software gives attackers a way in.
• Ransomware threats: Without regular backups and a recovery plan, you risk losing access to your data.
• Too much access: If too many people can access sensitive data, the risk of misuse or leaks goes up.
• Vendor risks: A weak third-party vendor could expose your data even if you don’t make a mistake.

Take action:

Use a cybersecurity checklist or risk assessment tool to identify where you’re vulnerable. Document each risk and rate your current protection so you can target the biggest gaps.

Step 3 – Evaluate Risk Impact and Likelihood

Once you identify the risks, assess how serious they are and how likely they are to happen. This helps you focus your efforts where they matter most.

What happens if donor data is compromised?

• Donors may stop giving, causing funding shortfalls
• Your organization could face a public relations crisis and lose trust
• You may face legal action if you violate data privacy laws like GDPR, CCPA, or HIPAA

How likely is a cyberattack?

• Industry reports show that nonprofits are common targets for phishing and ransomware attacks
• Data from past breaches points to a steady rise in attempted attacks against nonprofits

Take action:

Look at each risk and ask: How bad would this be? How likely is it to happen?  Use a simple chart (like a risk matrix) to sort them by impact and chance. By focusing on the threats that are both serious and likely, your cybersecurity risk assessment plan protects what matters most.

Step 4 – Implement Security Controls and Best Practices

Once you understand your risks, take clear steps to protect your systems, data, and people. These best practices help keep your nonprofit secure without overwhelming your team:

1. Protect donor and volunteer data

• Encrypt data both when it’s being shared (in transit) and when it’s stored (at rest)
• Turn on Multi-Factor Authentication (MFA) to block unauthorized access

2. Control access to sensitive information

• Use “least privilege” access–only let people access the data they truly need
• Remove access immediately when staff or volunteers leave your organization

3. Train staff and volunteers to spot threats

• Run regular phishing simulations to test awareness
• Set clear rules for creating strong passwords and sharing data safely

4. Prepare for incidents and recover quickly

• Create a response plan to handle data breaches and security issues
• Back up your data often so you can recover quickly from ransomware
• Plan how you’ll inform donors and stakeholders if something goes wrong

5. Review vendor security and run audits

• Ask third-party vendors for security certifications like SOC 2 or ISO 27001
• Audit all vendors who manage your data once a year to spot any risks

Take action:

Start with simple wins- enable MFA, update your password policy, and conduct your first phishing test. Then, put together a full security checklist based on your biggest risks.

Step 5 – Monitor, Audit, and Continuously Improve Security

Cybersecurity isn’t just an IT task or a one-time project that you set and forget. It’s a key part of protecting your nonprofit’s mission every day. Your organization can:

1. Run regular risk assessments

• Schedule cybersecurity risk assessment reviews every few months
• Use them to check for new threats or gaps in your system

2. Use tools to monitor your systems

• Install monitoring tools that alert you to unusual or suspicious activity
• Track login attempts, file access, and other key actions

3. Keep learning and stay updated

• Attend nonprofit tech conferences or webinars on nonprofit cybersecurity
• Read industry reports to stay ahead of new risks and solutions

Take action:

Make monitoring part of your routine. Set reminders for risk assessments, review your security tools regularly, and keep your team informed with the latest best practices.

Conclusion & Next Steps

As cyber threats grow more frequent and complex,  you must treat nonprofit cybersecurity as a key part of long-term sustainability and mission strategy.  Start with a quick cybersecurity risk assessment. Identify your top risks, take simple actions like enabling MFA, and keep improving as you go. With the right focus, your nonprofit can stay secure, trusted, and mission-ready.

Need a hand getting started? We’re ready when you are.

Contact CUBE84 to get started and take the first step toward smarter, safer nonprofit operations.

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