The Missing Piece in the Non-profit Puzzle: The Truth About the Role of CSOs
In 2023, 25% of non-profits experienced a cyberattack, and for many, the fallout was devastating.
Yet, many of these organizations operate without a dedicated security leader. Why? Because often they don’t see the value. Non-profits face unique challenges when it comes to cybersecurity. They’re often strapped for resources, dependent on donations, and understaffed.
But whether they realize it or not, non-profits are just as much in the crosshairs of hackers as a multinational company. Here’s what makes them such prime targets for hackers:
Tight Budgets, Weaker Defenses: Non-profits often operate on limited budgets, meaning cybersecurity investments tend to fall low on the priority list. Without advanced defenses, they remain easy targets for even unsophisticated attacks. A CSO’s job is to advocate for cybersecurity as a must-have investment, not a luxury. Explain the harsh reality: the cost of recovering from an attack far exceeds the cost of protecting against one.
High-Value Data, Easy to Exploit: Non-profits hold sensitive data that’s a goldmine for hackers—donor credit card numbers, Social Security details, even medical information from beneficiaries. Unfortunately, this valuable information is often stored with minimal security.
Inexperienced, Undertrained Staff: Unlike corporations that have dedicated IT teams, non-profits often rely on a small, overstretched workforce, many of whom lack formal cybersecurity training. The risk of human error skyrockets under these conditions.
What’s at stake for non-profits?
If a non-profit is hit by a cyberattack, the consequences go far beyond IT repair costs. A CSO communicates what’s truly at risk if the organization’s cybersecurity measures fall short.
Loss of Donor Trust
Trust is the lifeblood of any non-profit. Donors, particularly high-net-worth individuals, expect their personal and financial information to be secure. A single breach can cause a permanent loss of that trust. If donors believe their information isn’t safe with you, they’ll take their support elsewhere, and you may find it incredibly hard to win them back. The CSO’s role is to regularly communicate the organization’s security improvements to donors. A CSO should work closely with the marketing or communications team to reassure donors that their data is secure and that proactive steps are being taken to prevent future breaches.
Legal and Compliance Nightmares
Non-profits are subject to the same data privacy regulations as any for-profit business. HIPAA, PCI DSS, CCPA—these laws don’t care about an organization’s tax status. If sensitive data is compromised, non-profits can face steep fines and penalties, not to mention the cost of lawsuits from those whose data was exposed. To help a non-profit, a CSO needs to stay ahead of compliance requirements. As a CSO, it's your job to ensure the non-profit is compliant with all applicable regulations. Conduct regular audits to make sure that security policies are up to date and aligned with the latest legal standards.
Financial and Operational Collapse
Cyberattacks can drain financial resources and shut down day-to-day operations. In 2023, the average ransomware demand exceeded $1 million. Even if you don’t pay the ransom, the costs to restore systems, recover lost data, and upgrade security measures can easily bankrupt a non-profit. A CSO’s value lies in ensuring the organization has a disaster recovery plan in place. Test backup systems regularly and verify that critical data is being backed up frequently. Have a clear, step-by-step plan to restore operations after an attack to minimize downtime.
3 Concrete Ways to Demonstrate Value
A CSO doesn’t just enhance security; they bring measurable value to non-profits by safeguarding their mission, protecting donor trust, and ensuring compliance. Here are three concrete ways a CSO can demonstrate their value and secure an organization’s future.
1. Protect the Organization’s Reputation by Mitigating Risks
Non-profits run on trust, whether it’s the trust of donors, beneficiaries, or partners. A data breach can shatter that trust instantly, leading to a steep drop in donations and, potentially, the end of the organization. Hackers target non-profits precisely because they often store sensitive information—donor data, personal beneficiary details, and sometimes even medical records—with minimal security controls.
That means a CSO’s first step is to conduct a thorough risk assessment. By identifying vulnerabilities early, you can show the leadership team how exposed their organization is to a breach. Demonstrating potential financial losses from a cyberattack will help shift their perspective on the need for cybersecurity.
Action steps for showing value include:
Create a detailed report that compares the cost of preventive measures to the potential financial damage of a breach, including lost donations, legal fees, and recovery costs.
Implement immediate protective measures like encryption, firewall upgrades, and strict access controls. Present a clear, staged plan for ongoing improvements.
Communicate security improvements to the board, donors, and stakeholders. By regularly updating them on the steps being taken to safeguard the organization, you reinforce trust and show that cybersecurity is being actively managed.
The CSO’s role goes beyond installing technology. It’s about protecting the organization’s most valuable asset: its reputation.
2. Ensure Compliance with Legal and Donor Requirements
Non-profits may not always recognize it, but they’re subject to the same data protection regulations as for-profit entities. Compliance with laws like HIPAA, PCI DSS, and the CCPA isn’t optional, and failing to comply can lead to crippling fines and lawsuits. Beyond legal requirements, many high-net-worth donors and grant providers expect non-profits to meet stringent cybersecurity standards before they consider offering financial support.
A CSO serves as the compliance leader, ensuring that the non-profit is meeting all relevant legal requirements and reassuring donors that their data is safe.
Action steps for showing value include:
Conduct a compliance audit to assess the organization's current standing with data privacy laws. Share the results and your remediation plan with leadership.
Implement proper controls and policies, from encryption standards to incident response procedures. Ensure the organization’s practices align with legal standards.
Highlight donor expectations by communicating how robust cybersecurity can enhance the organization’s credibility and increase funding opportunities. Donors are more likely to trust and continue supporting an organization that demonstrates a commitment to safeguarding their data.
By ensuring legal compliance and protecting donor data, you not only prevent costly penalties but also open doors to future funding.
3. Build a Resilient Organization with a Disaster Recovery Plan
Cyberattacks, especially ransomware, can cripple non-profits financially and operationally. In 2023, the average ransomware demand exceeded $1 million, a cost that could bankrupt a non-profit. Even if the ransom isn’t paid, the financial toll of restoring systems, recovering data, and handling reputational damage can be immense.
A CSO is critical in developing and implementing a disaster recovery plan. The goal isn’t just to survive an attack, but to ensure the non-profit can continue its mission with minimal disruption.
Action steps for showing value include:
Develop a comprehensive disaster recovery plan, complete with data backups, alternate communication channels, and a step-by-step guide for restoring operations. Conduct regular drills so that every department is prepared for an attack.
Ensure frequent and secure backups of critical data, stored both on-site and in the cloud. Test the backup systems regularly to verify that the data is recoverable and current.
Monitor systems and perform ongoing risk assessments to identify and address vulnerabilities before an attack happens. By regularly scanning for potential threats and implementing proactive defenses, you demonstrate that the organization is not a sitting duck.
A well-implemented disaster recovery plan shows the non-profit that their mission is safe, no matter what cyber threats arise.
Conclusion: Non-profits Need CSOs More Than They Realize
In today’s threat landscape, non-profits cannot afford to ignore cybersecurity. By providing expert guidance, ensuring compliance, and building a resilient infrastructure, a CSO offers immediate and long-term value to any non-profit organization. Beyond just preventing breaches, a CSO plays a critical role in protecting the organization’s mission, reputation, and financial future.
For non-profits, cybersecurity is not a luxury; it’s essential for survival. A CSO is not just a technical expert; you are a strategic asset, crucial to securing the organization’s operations and enabling them to continue doing the good work they are meant to do.
Cybercriminals don’t care about the good work a non-profit does. They care about the money they can make, the data they can steal, and the damage they can inflict. A CSO’s mission to make sure that protecting the organization becomes just as critical as fulfilling it.
Waiting for a breach to happen isn’t an option. By implementing the right strategies and fostering a culture of security awareness, you can better protect the non-profit, its data, and ultimately its ability to achieve its mission—whatever that may be.
CSO’s provide leadership that is the frontline defense, and, without it, non-profits are left exposed. That’s where CSO’s shine: Protecting the mission of non-profits by ensuring cybersecurity is never an afterthought.