July 8, 2015
It seems like every week we hear about another major data breach. But it’s not just large retailers that are being targeted. In fact, most cyber-attacks are targeted at small businesses. The reality is that small businesses – nonprofits included – are targeted because they’re less likely to have the kind of sophisticated cyber protection and safety protocols large companies have in place.
Why would hackers attack charities and nonprofits? Nonprofits generally store sensitive information such as volunteer and donor data including bank accounts, credit card and social security numbers on their computer system. Hackers can more easily gain access into a less protected computer system and sell them to identity thieves on the dark web. Hackers won’t necessarily know how many or the value of your records, but if they can gain access to your network, they can find out.
Even if your organization has the latest firewalls and cyber security, the threat can come internally from employees or volunteers. They may have direct access to donor records and more. If just one employee is lured by the temptation of easy money, it could have devastating consequences to the organization. According to Experian’s 2015 Data Breach Industry Forecast, employees and negligence will continue to be the leading cause of security incidents in the next year.
The consequences of a data breach can be devastating:
Notification. It starts with informing all of your members, employees, volunteers and donors. Most small businesses and non-profits do not have the resources or plans in place to respond to data breaches and may need to hire a public relations firm to help react to negative headlines in the press.
Time. A data breach diverts attention from the daily activities of running an organization to the process of recovering from the event. If your time is normally devoted to serving your members and overseeing operations, you can expect to delegate that work to others while you (and perhaps other employees) respond to the breach.
Financial cost. In addition to the loss confidence by donors and members, a data breach can be quite costly. The University of North Carolina said a 2013 data breach of just 6,000 records has cost the school nearly $80,000 in working with affected parties. The external costs to date include notification letters, credit monitoring and operating a call center.*
In the coming weeks we will provide more insightful articles on our website about data breaches and how we can help you prepare and respond. Look for our next article: “Are You Prepared for a Data Breach”
Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!