Grant Thornton New Zealand's latest Not-for-Profit report says charities are particularly vulnerable to phishing attempts and ransomware attacks.

The report states that these attacks are all over the economic sector and show no signs of abating.

Report findings

The Not-for-Profit report says:

• only 43 percent of NFPs invested in cybersecurity in the two years to 2022
• only 27 percent plan to invest in cybersecurity over the next two to three years
• 37 percent of NFPs do not have effective procedures to detect and report data breaches

"NFPs face unique challenges that make it harder for them to invest in cybersecurity", Grant Thornton New Zealand's Barry Baker says.

"Naturally, they are always trying to minimise spending, as there's a lot of pressure to spend as much as possible on frontline assistance to those in need, and as little as possible on the behind-the-scenes processes that deliver that assistance.

"This often means eking an extra year or so out of technology. NFPs are still using laptops that should be replaced, relying on outdated software and legacy platforms - creating greater vulnerability to cyber attacks.

"Cybersecurity can also seem like a non-priority. When there hasn't yet been a data breach or hack, that can give NFPs a dangerous false sense of security."

Risks high

The potential risks cannot be overstated, Baker says. It's not a matter of if an organisation will be hacked, it's a matter of how bad it will be.

"For a charity, this could result in a complete halt on operations, snarling up frontline services and potentially demanding a ransom to restore systems.

"Worryingly, that ‘smash and grab' approach by bad actors is being superseded by a more insidious attack: the actors can get into your systems, look around undetected and steal any of your data, including donors' and/or members' personal data.

"Then there's the reputational fallout. Donors who see your name connected with a data breach can easily switch their contributions to another organisation."

Protecting the organisation

Taking cybersecurity risks seriously is vital, Baker says. It should be given the same attention as health and safety.

Importantly, private data from donors and donor transactions need to comply with certain PCI DSS standards, he says.

Baker suggests it may be worth investing in a third-party payment gateway to take over processing credit cards.

That "reduces the data you're keeping and the level of compliance required of the organisation," he says.

He also notes it's important to understand that tech problems aren't really about technology.

They're about people.

"This means thinking about not only systems, but up-skilling everyone who works in the organisation, including the board, and encouraging teams and suppliers to work together harmoniously.

"Only with cooperation and education can your organisation protect itself from the ongoing risks of cyberattacks."

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• Voxy

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Council of Social Services executive officer Sharon Torstonson said many social agencies displaced after the quakes wanted to return to the central city but could not afford to.

Non-profit groups needed a central location to be near services and each other, and so the public could reach them by bus, she said.

The groups were the "vulnerable tenants of the commercial sector" and had to keep accommodation costs down to leave more to spend on services. Continue reading

In a new study released by the Nonprofit Finance Fund (NFF), an organization that surveyed nearly 2,000 nonprofit organizations, 87 percent report the decline in the U.S. economy continues to impact their operations.

"The nonprofit sector is like the caboose ... of the economy, so we often go over the cliff last and then we stay over the cliff even after the economy starts going up the other way," said Ken Berger, president and chief executive of Charity Navigator, which evaluates the nation's big charities.

"The teeny-weeny, little local community-based, grass-roots charities are hitting a brick wall."

While 2010 produced relatively good results, only 52% of charitable organisation met their fundraising goals during the year, which was about the same level as in 2009.

The nonprofit sector is preparing for this to be worse than 2009. They are beginning to call their situation "The New Nonprofit Reality."

Added pressure is being put on the charitable sector by increased unemployment, poverty, and government budget cuts.

The main issue according to Rebecca Benard, St. Barnabas' Vice President of Development and Strategic Initiatives in Los Angeles, is the 10% increase in demand for its services.

Key outcomes of the Nonprofit Finance Fund survey include:

• 87% believe the recession isn't over
• 77% saw an increase in demand for services
• 28% have 1 month or less of cash
• 55% have added or expanded their programmes.