At ABT Solutions, we’re passionate about protecting organizations from cyber threats. And while many nonprofits assume hackers wouldn’t bother with them, the truth is sobering: cybercriminals don’t care if you’re a Fortune 500 company or a local nonprofit. They look for vulnerabilities, and unfortunately, nonprofits are often viewed as easy targets, especially the small ones because they have nothing.

Many nonprofits still rely on free email accounts to run their organizations, and that’s a major mistake. Why? For the same reason a doctor’s office wouldn’t or shouldn't. You’re handling sensitive information every day: employee records, donor details, financial data, and customer information. You have both a legal and ethical responsibility to keep that data secure. Failing to do so doesn’t just put your mission at risk, it puts directors, board members, and even staff in the crosshairs of potential class action lawsuits.

Why Cybersecurity Is Non-Negotiable for Nonprofits

1. You handle sensitive data.
   Donor names, employee information, addresses, payment card information, Social Security numbers, and even healthcare-related records in some cases, this is gold on the black market.
2. Trust is your greatest asset.
   Donors give because they trust you. A single breach can shatter that trust, putting your mission and funding at risk.
3. Cybercrime has evolved.
   Today’s cybercriminals use AI-driven phishing, ransomware-as-a-service, and advanced attack methods. No organization is too small or too charitable to be a target.

The Legal Ramifications of Not Protecting Donor, Employee and Customer Data

Ignoring cybersecurity isn’t just risky, it can be legally costly.

Oklahoma State Law

Oklahoma has a data breach notification law (Oklahoma Statutes §24-161) that requires organizations, including nonprofits, to notify affected individuals of a data breach “in the most expedient time possible.” Failing to comply can trigger state investigations, fines, and lawsuits.

Broader Data Protection Laws

Even if you’re based in Oklahoma, your donors and members may live across the country, or even abroad. That means other data protection laws may apply:

• California Consumer Privacy Act (CCPA/CPRA): If you collect data from California residents and meet certain thresholds, you must provide clear privacy disclosures and safeguard that data. Civil penalties can reach up to $7,500 per violation.
• General Data Protection Regulation (GDPR): Accept donations or interact with anyone in the European Union? GDPR applies. It requires strict data protections, 72-hour breach notifications, and clear consent processes. Fines can reach millions of dollars, even for nonprofits.
• Other State Laws: States like Colorado, Virginia, and Connecticut now have their own privacy laws. Depending on where your donors live, your nonprofit may have to follow several sets of rules.

FTC Enforcement

The Federal Trade Commission (FTC) is also active in holding nonprofits accountable. Under Section 5 of the FTC Act, it can take action if your organization makes promises about protecting donor data but fails to take “reasonable” steps to secure it. That means if your website claims you safeguard donor privacy but you’re not encrypting records or patching systems, the FTC can treat that as a deceptive practice.

Donor Litigation and Class Actions

Data breaches often spark lawsuits from donors, employees, members, or beneficiaries who believe their personal information was mishandled. Many of these become class actions, leading to large settlements or legal defense costs that nonprofits simply can’t afford.

IRS and Financial Scrutiny

Nonprofits are required to maintain accountability to preserve their tax-exempt status. A cyber incident that compromises financial records or donor contributions can lead to IRS audits, compliance costs, and in severe cases, questions about the organization’s ability to responsibly manage funds.

Myth vs. Reality: Who’s Really at Risk?

Myth: If a nonprofit suffers a cyberattack, only the organization itself can be sued; directors, board members, and employees aren’t personally at risk.

Reality: While most class action lawsuits target the nonprofit as an entity, leadership isn’t completely shielded. Directors and board members have a fiduciary duty to exercise reasonable oversight. If it’s shown that leadership ignored known cybersecurity risks or failed to act responsibly, regulators or donors could pursue personal liability claims.

This means nonprofit leaders must treat cybersecurity as part of their governance responsibility. Choosing to do nothing, or to rely on “free” tools like Gmail or Yahoo for sensitive communications, doesn’t just endanger the mission, it may expose decision-makers to legal and reputational consequences.

What’s the Price Tag on a Data Breach for a Small Nonprofit?

Average Cost for Nonprofits (~$200,000)

For nonprofits specifically, the average cost of a data breach is estimated at around $200,000, a figure that directly represents money diverted from mission-driven work like helping communities and supporting beneficiaries.

Small Business Benchmark ($120,000–$1.24 million)

Looking at small businesses more broadly, the Verizon 2024 Data Breach Investigations Report estimates breach costs between $120,000 and $1.24 million, depending on severity. Many small organizations simply can’t weather those damages.

Why the Gap—And Why It Matters

• Scale & Complexity: Small nonprofits typically hold fewer records, handle simpler systems, and may not face costly regulatory fines, so their breach cost tends to be lower than large corporate averages.
• Real Costs vs. Averages: The $200,000 nonprofit average is a realistic reflection of operational interruptions, legal fees, public relations, donor fallout, and recovery support, not just raw data theft.
• Uninsured Vulnerability: Many nonprofits lack cyber insurance or robust incident response plans, so even a moderate breach can divert vital funds or destabilize operations.

The Bottom Line

Cybersecurity is not optional for nonprofits, it’s a safeguard for your mission, your donors, your employees, and your future. A single breach can bring devastating financial, legal, and reputational consequences.

At ABT Solutions, we believe protecting organizations isn’t just about technology, it’s about protecting trust. We help nonprofits secure their systems with the same level of defense used by major businesses, but tailored to your size and needs. That includes email security, endpoint protection, staff training, penetration testing, and more.

Your mission deserves protection. Don’t wait until a hacker forces the issue!

let’s talk today about securing your nonprofit.