Cybersecurity risks are on the rise and nonprofits have become prime targets.
As donor data, grant information, and financial transactions increasingly rely on digital systems, safeguarding the organization has never been more critical. While nonprofits often run on tight budgets, overlooking cybersecurity threats can be far more costly, leading to data breaches, system outages, and reputational damage that erodes donor trust.
The good news is that practical steps can help strengthen defenses and protect sensitive financial systems. In this article, we explore the most common cybersecurity risks nonprofits face and effective ways to reduce them.
Find system weaknesses before attackers do.
Nonprofit financial systems hold confidential information like donor contact details, payroll data, and payment records, which make them appealing targets for cybercriminals. Here are some of the most common cybersecurity risks:
- Phishing and social engineering: Tricking staff into revealing login credentials or clicking harmful links
- Ransomware and malware attacks: Locking or destroying data until a ransom is paid
- Compromised credentials: Using weak or reused passwords that allow unauthorized access
- Third-party vulnerabilities: Security gaps in the vendors and platforms you rely on
A formal risk assessment that maps computer networks, identifies critical infrastructure, and prioritizes the most sensitive information can help you decide where to focus your efforts.
Build security into your financial systems from the start.
It’s much easier to build security in from the beginning than to add it later. Retrofitting controls after an incident can be disruptive and expensive. When choosing a cloud-based nonprofit accounting platform, look for core features such as:
- Multi-factor authentication (MFA) to stop unauthorized access even if passwords are stolen
- Granular user permissions so staff only see what they need to see
- Automated data backups and disaster recovery to recover quickly if something goes wrong
- Audit trails that log every change for full transparency
These basics go a long way in protecting critical systems and making it harder for attackers to get in. Robust solutions like Sage Intacct include these security features out of the box, so you can fortify defenses from day one without adding extra tools or complexity for users.
Leverage the security advantages of Sage Intacct.
After establishing core security measures, choose technology that reinforces them by design. Cloud platforms like Sage Intacct help nonprofits safeguard financial data while streamlining daily financial operations.
Beyond essentials like role-based access controls, MFA, and secure login policies, Sage Intacct integrates its security features in ways that make financial management both safer and more efficient.
Comprehensive audit logs provide real-time visibility into every change, while automated bank reconciliations detect errors and unusual activity early. Centralized grant and donor records keep sensitive data in one controlled environment, reducing the risk of leaks. Built-in collaboration tools allow finance teams to manage approvals and transaction discussions within the system instead of through unsecured emails.
And because Sage Intacct is cloud-based, security updates occur automatically in the background, keeping systems protected without placing extra demands on staff.
Strengthen internal controls to prevent fraud.
Separating duties so no one person can approve, process, and reconcile the same transaction is one of the best safeguards against fraud or mistakes. Approval workflows and automated reconciliations help reinforce these controls and provide real-time visibility into finances.
These checks and balances do more than reduce cyber risks. They also build donor confidence by demonstrating a strong commitment to protecting the funds entrusted to your organization’s mission.
Don’t overlook your people and partners.
Even the best security tools can’t help if your people aren’t prepared. Train staff to spot phishing attempts, use strong passwords, and follow security best practices. Be sure to evaluate vendors carefully, too. Check that they follow strong security standards, include clear reporting steps in contracts if problems occur, and set up their tools using recommended security settings before putting them into use.
Cybersecurity risks aren’t going away, and neither is the need to protect your nonprofit’s financial systems. With the right mix of technology, internal controls, and ongoing vigilance, you can protect your data and stay focused on your mission. Sage Intacct supports this effort by embedding security features directly into financial operations, reducing risks while improving efficiency.
Intuitive Business Concepts helps nonprofits stay secure, compliant, and future-ready with solutions like Sage Intacct. Build stronger controls, safeguard your data, and move forward with confidence. Contact us today to get started!
About IBC: At IBC, we have a deep understanding of the critical business needs and processes specific to associations, non-profits, and unions. We ‘get’ your culture, your goals, and what drives you, too. Focused exclusively on and dedicated to delivering the most effective AMS, LMS, and Cloud Financial Software for our clients, we’re well-versed in identifying and applying the integration techniques that will save you time and money. Since 2001, our cutting-edge products, unparalleled responsiveness, and award-winning services have helped organizations like yours increase their operational and financial performance by leveraging best practices and proven solutions. For more information about IBC, please visit the website at www.ibconcepts.com or call 443.603.0215.
