Managing data is a challenging task for any organization, but for nonprofits, the stakes are especially high. Nonprofits deal with sensitive donor and client information, and must ensure that it is collected, stored, and used ethically. It’s therefore crucial for nonprofits to have strong data governance policies in place.
What is data governance?
Data governance is the framework of policies, processes, and procedures that help organizations effectively manage their data. It is a holistic approach that involves every aspect of an organization’s data life cycle, from collection to disposal. For nonprofits, this includes not only donor and client data but also information related to programs, fundraising, and operations. Nonprofits must establish strong data governance practices to safeguard sensitive information, meet compliance regulations, and maintain trust with their stakeholders.
Data governance best practices for nonprofits
To ensure effective data governance, nonprofits must adopt the following best practices:
Understand data flows and processes
Effective data governance begins with a thorough understanding of how data moves within your organization. This involves mapping out every point where data is collected, how it is transferred between departments or systems, where it is stored, and how it’s disposed of. Identifying and documenting these pathways will serve as the foundation for broader data governance policies.
You should also have clear documentation on the types of data you collect such as personally identifiable information, financial records, intellectual property, and nonsensitive data. For each data type, specify who has access, whether it be internal staff, volunteers, or third-party vendors. This will help you monitor and control who has access to sensitive information down the line.
Develop data collection and storage policies
With a clear understanding of data flows and processes, nonprofits can develop policies for how data is collected and stored. This should start with defining what data is necessary and relevant to your organization and establishing procedures for collecting it ethically. For instance, you may need to obtain consent from donors or clients before collecting their information via online forms or in person. Then, nonprofits must specify where and how this data will be stored such as in a secure in-house database or cloud storage service.
It’s also important to establish retention periods for different types of data and have guidelines for disposing of data when it is no longer needed. Financial records, for example, may need to be kept for up to seven years for tax purposes, while client data should be disposed of once it is no longer relevant or if the client chooses to opt out of communications. With proper retention and disposal practices, nonprofits can significantly reduce the risk of privacy violations due to data hoarding.
Regularly assess data quality
Another aspect of data governance is maintaining data quality. Nonprofits must establish processes for regularly assessing data accuracy, completeness, and reliability. These can include conducting audits, performing data removal activities, and implementing quality control measures to ensure that all data is up to date and relevant. Cleaning up and correcting any errors or inconsistencies in data will improve the overall quality, making it more valuable for decision-making and reporting purposes.
Assign access privileges
Nonprofits must clearly define the access privileges of employees, departments, volunteers, and third-party vendors to ensure that data is only accessed and used as required. The ideal approach is to assign access privileges based on roles and responsibilities. For example, a fundraising team member would not need the same level of access to donor data as someone from the finance department. Regularly reviewing and updating access privileges is also crucial, especially when there are changes in staffing or in roles. Having these clear permissions will help prevent potential misuse of data.
Implement robust data security
A big part of data governance is protecting the confidentiality, integrity, and availability of data. To achieve this, nonprofits must implement a comprehensive cybersecurity framework. For starters, they should install enterprise-grade encryption, firewalls, and anti-malware programs, as well as enable multifactor authentication. Routine patch management and vulnerability scans can also help identify and address any potential weaknesses in the system. Moreover, make sure to regularly back up data and mission-critical systems so that data can be recovered in case of a disaster.
Educate employees and volunteers
Data governance policies are effective only if everyone in the organization is aware of them and follows them. Therefore, it’s crucial to educate employees and volunteers on the importance of data governance and their role in maintaining it. This includes training on how to handle sensitive data ethically, recognize potential data privacy risks, and report any incidents or breaches. By involving all members of the organization in data governance practices, nonprofits can create a culture of responsibility and accountability.
Continuously monitor and update policies
Since data governance is an ongoing process, nonprofits must regularly monitor and update their policies to keep up with changes in technology, regulations, and organizational needs. This involves conducting periodic audits to ensure compliance with data protection laws and regulations, such as the CCPA or PCI DSS. Organizations should also be prepared to adapt to new challenges, such as hybrid work and the data protection implications it brings.
There’s a lot that goes into creating an effective data governance program for nonprofits, but you don’t have to do it alone. Varsity Tech offers comprehensive expertise and resources to help your nonprofit lock down its data governance policies and practices. Contact us today to learn more about our services.
