6 Tech Risks Your Nonprofit May Be Overlooking

Technology problems have a way of creeping up on nonprofit organizations that are solely focused on their mission. It could be because technology is not their main area of expertise, or simply because they do not have the resources to prioritize it. However, ignoring these risks can have serious consequences for nonprofits. To make sure your nonprofit is not caught off guard, we have compiled a list of six commonly overlooked technology risks your nonprofit may be ignoring.

Shadow IT

Shadow IT refers to any technology used within your nonprofit without your IT department’s knowledge or approval. Some examples include staff using personal devices to access sensitive data or installing third-party software without proper vetting and authorization from IT. 

While employees often turn to these tools to improve their productivity, there’s no guarantee that they are secure or compliant with your organization’s policies and procedures. This can leave your nonprofit vulnerable to data breaches and compliance issues.

To mitigate these risks, nonprofits should establish clear technology policies and implement a streamlined approval process. Additionally, engaging staff in conversations about the security risks associated with unofficial tools is vital for minimizing the presence of shadow IT.

Heavy reliance on in-house technology

Many nonprofits, especially those with limited budgets, might be tempted to build their technology solutions in house. The problem is this approach can quickly become unsustainable and lead to technical debt.

Technical debt is the accumulation of outdated or inefficient technology in an organization, resulting in higher maintenance costs and decreased productivity. For example, a company might rely on an old software system that lacks integration with modern tools. As a result, employees have to manually transfer data between systems, wasting time and increasing the likelihood of errors, while the company spends more on maintaining the outdated software instead of upgrading to a more efficient solution. 

It’s important for organizations to strike a balance between building their own solutions and investing in external resources. A good rule of thumb is to assess whether building something in house aligns with your organization’s core competencies. If your team lacks experience in these areas, outsourcing or partnering with an experienced managed IT services provider can save time, money, and hassle in the long run. Plus, with someone else managing your tech, you can focus on your mission.

Forgetting basic cybersecurity hygiene

Basic cybersecurity hygiene practices, such as regularly updating software, safe web browsing, and using strong passwords, are crucial, but they’re often the easiest to overlook. One reason for this is that they may seem mundane and unimportant. However, unless employees are consistently following these practices, your organization’s data and systems are at risk. 

That’s why it’s vital to remind employees and volunteers of these basics and provide regular training on cybersecurity best practices. Online courses, workshops, or even monthly refresher courses are great ways to ensure that employees are staying up to date and following proper protocols.

Underestimating insider threats

Employees or volunteers with access to sensitive information could misuse their privileges, whether out of malice or negligence. For example, a disgruntled employee might steal donor information. An employee might accidentally leak sensitive data by falling for a phishing scam or mistakenly including the wrong recipients in an email CC chain.

To mitigate these risks, implement role-based access controls and conduct regular security training. The former limits employee access to only the data and systems necessary for their job, while the latter trains them to identify potential red flags and steer clear of common pitfalls. Additionally, establishing a system for reporting suspicious behavior and enforcing strict consequences for insider threats can deter potential incidents.

Bare-bones backup and recovery plans

When it comes to data backups, businesses may not have planned for the more intricate details. Key information such as where backups are stored, how often they are performed, and who has access to them should all be documented. 

What’s more, nonprofits should have a documented recovery plan. This includes identifying critical systems and data, setting up redundancy measures, and establishing clear protocols for restoring lost or corrupted information. Regularly reviewing, testing, and updating these plans can mean the difference between a minor inconvenience and a major disaster during a crisis.

Poor technology investments

When investing in new technology, it’s easy to be swayed by flashy features or discounted software, but making poor decisions can have long-term consequences. For instance, a nonprofit might purchase an inexpensive software package for volunteer management only to find that it’s not compatible with their other tools, leading to inefficiencies and extra costs down the road. 

Before making any purchase, nonprofits should conduct thorough research to ensure the software meets both current needs and future goals. It’s also wise to ask for a demo or trial period to get hands-on experience with the product. More importantly, consulting with IT experts can help nonprofits make informed decisions about technology investments. If technology isn’t your nonprofit’s specialty, Varsity Tech is here to make sure you don’t overlook common tech risks. As a leading MSP, we specialize in providing technology solutions that help nonprofits stay productive, operational, and secure. Call us now to learn more.