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”
Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.
The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.
In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.
We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.
PORT Health Services has had a great experience with the Unemployment Savings Program offered through First Nonprofit. Throughout the years we have been involved in the program, we have increased our reserve account significantly through this program and find the reporting we receive both timely and useful. We look forward to our continued involvement with this program and our connection with First Nonprofit for many years to come.
Job One was spending a lot of money on unemployment. Our insurance broker, Mark Simcosky, recommended that we switch over to First Nonprofit. We did just that! This switch has been a huge savings for us! This switch saved us over $10,000 in the first year. Their customer service is Superior! Any time we have a question, we get a response very quickly. Any time we send them a report and they have a question; they call rather than just assuming. They were very responsive during COVID, even when they were in crisis mode their selves. They also were always there when we needed during COVID and very helpful! We would 1,000% recommend First Nonprofit to anybody that could benefit from it!
My experience with FNP has always been positive. Every time I have had to contact them, I’m always put in contact with a friendly and knowledgeable person. If something is missing from our account, they reach out to us to request it. It’s nice to work with a company that makes sure our account is current. I would recommend them to any nonprofit looking to reduce their unemployment insurance costs.
We’ve saved tens of thousands of dollars PER YEAR by changing to become a reimbursing employer, freeing funds for much needed capital investment. FNP has been a valued partner in this process, providing assurance that we have stopgap coverage for extraordinary claims and keeping claims response painless and simple. It’s a huge Win/Win!