By James Cherry, CEO at IT consultancy Northdoor plc
How third-party IT consultants can help not-for-profit organisations to implement data security and compliance
As technology continues to evolve, so do the cyber threats that come with it. Cyber criminals are becoming ever more sophisticated and are finding new ways to exploit vulnerabilities and compromise systems.
With a rising demand for services, decreased donations, and mounting operational costs, the third sector is under unprecedented pressure in 2025. Added to this is the critical need to protect sensitive donor and beneficiary data, as breaches can devastate reputations and undermine trust.
Reputation is Everything
For charities, reputation is everything. Mishandling sensitive donor and beneficiary data can have catastrophic consequences, from donor disengagement to irreparable harm to their credibility. Not-for-profit organisations manage highly sensitive data, including financial details, personal identifiers, and even health records, making them an attractive target for cybercriminals. Making sure your charity is prepared for any cyber security risks will be vital to keeping your sensitive data secure in 2025.
Stark Statistics
The charity sector is driven by compassion and a mission to do good and in an increasingly hostile cyber landscape their often-limited resources and technical expertise make them desirable targets for cybercriminals. UK charities experienced an estimated 924,000 cybercrimes in 2024,according to the UK Government’s Cyber Security Breaches Survey. 32 percent of UK charities reported experiencing a cybersecurity breach or attack in the last 12 months. However, only 19 percent of charities report having a formal cyber incident response plan, with 39 percent of charities seeking information or guidance on cybersecurity from outside their organisation. These cyberattacks were wide ranging and the situation is set to deteriorate further in 2025.
The Triple Threat- Cost, Data Protection and Practical Solutions
The Charity Commission has commented on the current state of the sector, stating that it has found that there has been an increased demand for services amidst economic uncertainty, a decreasing number of donor contributions, growing competition for funding and rising operational costs, including technology investments. Not-for-profit organisations are already facing funding cuts and an increased demand for their services. This financial strain may force them to further reduce spending on cybersecurity, making them even more vulnerable.
Trust is also a critical issue for charities. Trust drives donations and earning trust takes time. A trustworthy reputation attracts more donors and volunteers, enhancing the charity’s overall image and influence. Data breaches and cyberattacks can severely damage a charity’s reputation, leading to a loss of donor confidence, fewer volunteers, and ultimately undermining their ability to provide services. Charities fundamentally rely on public trust to operate effectively. A breach can make people question whether their personal information is secure, deterring them from donating or engaging with the charity.
Donor Data Protection as a Strategic Imperative
Safeguarding donor and beneficiary data is central to maintaining trust. Typically, not-for-profit organisations face vulnerabilities from poor cloud configurations to weak endpoint security. Misconfigurations in cloud environments are a leading cause of data breaches. The complexity of security settings and the diversity of cloud services exacerbate this issue, making proper configuration a daunting task for charities.
Regulatory Compliance
As cyber threats evolve, so too does the regulatory environment and the third sector will need to put emphasis on the growing importance of compliance in 2025 and the significant cost of non-compliance. Regulatory compliance is becoming increasingly complex and crucial. Frameworks like the General Data Protection Act (GDPR), the Digital Operational Resilience Act (DORA), the Network and Information Security Directive (NIST2), the EU Artificial Intelligence Act (EU AI), and the Data Security and Protection Toolkit (DSPT) are demanding stricter adherence. Non-compliance can result in substantial financial penalties and reputational damage. Charities must now view compliance not just as a legal obligation, but as an integral part of their operations and technology infrastructure.
Practical Solutions for Cash-Strapped Charities
Cost-effective cybersecurity measures tailored to not-for-profit organisations will be crucial in 2025. Rather than treating cybersecurity as an afterthought, charities must treat cybersecurity as a strategic priority, by understanding the risks and allocating adequate funds.
People are also often a charities weakest link. Investing in regular training for all staff and volunteers can help them to understand the risks and identify common threats such as phishing.
Charities will also need to collaborate and share information about cyber threats with each other in 2025 and collaborate on best practices.
James Cherry, CEO at Northdoor plc explains: “Data breaches can significantly erode the trust of donors and beneficiaries, potentially resulting in decreased funding and support. For many not-for-profit organisations, identifying, implementing and managing cyber security solutions that adhere to regulations is a daunting if not impossible task.
“Third-party IT consultants can help not-for-profit organisations to implement strong security measures such as multi-factor authentication, strong passwords, regular software updates, and robust backup systems. Third-party IT consultants can help the third sector to conduct regular risk assessments to assess vulnerabilities and identify areas for improvement. Developing incident response plans that navigates the complex cyber landscape will also be crucial in 2025. Having a plan in place to deal with a cyberattack will help minimise damage and ensure a swift recovery.
“Third-party IT consultants can help to implement end-to-end optimisation in order to maximise the positive impact of their expenditure on operational systems and services. By optimising the productivity and effectiveness of staff, charities can ensure that more funding and time is dedicated to their core mission. Third-party IT consultants can help charities to deploy and run IT solutions that will transform their ability to do good in the world by providing expert advice on IT strategy, reduced IT risk, tailored support services and proven, cost-effective productivity gains,” Cherry concluded.
