IT and the many challenges for nonprofits

Abstract

Security is a concern for companies in any industry. While it is often discussed in the context of governments and private‐sector organizations, nonprofits need to be just as vigilant when it comes to understanding the need for data privacy and implementing solutions to keep critical information safe. Informed donors, as well as government and regulatory agencies, are keenly interested in data security issues, such as personally identifiable information and hardened systems. Penalties for data breaches can be severe both in monetary costs as well as in reputational damage. Furthermore, privacy laws, such as the California Consumer Privacy Act (CCPA), can have an impact on nonprofits. That's because, although nonprofit organizations in California are exempt from the CCPA, they must take due care of their own vendors and providers. Through their actions, they must demonstrate that they are following the law. The fact is that consumers, in general, do expect their private data to be protected by the “steward of the data.” If that steward is the nonprofit, then that is where the perceived and implied obligation to protect data may lie.