Article
Building mission resilience: Enhancing cyber and fraud risk governance for not-for-profits
Oct. 8, 2025 · Authored by Norris James
Not-for-profit (NFP) leaders and boards are confronting a growing and often unseen threat, cyber and fraud risk. No longer confined to the information technology (IT) department, cybersecurity and fraudulent incidents now erode organizational trust, disrupt essential operations, drain financial resources and jeopardize the very mission not-for-profits serve. Ransomware can paralyze donor databases, phishing schemes reroute critical funds and data breaches can expose supporter information, putting relationships and reputations at risk.
The lesson is clear: cyber and fraud risk is not just about systems, it is about stewardship. For not-for-profit management and board members, the real test lies not in how firewalls are configured, but in how governance is exercised. Cyber resilience must be treated as an essential facet of fiduciary; mission continuity depends on it.
The expanding cyber risk landscape
Today's cyber risks are more sophisticated, interconnected and consequential than ever. Key challenges for NFPs include:
- External threats: Advanced phishing and ransomware campaigns that target unsuspected users and fundraising platforms
- Internal threats: Fraud tied to vendor payments, treasury operations or credit card misuse often enabled by weak oversight
- Converging risks: Cyber incidents that seamlessly evolve into financial crimes, combining technical disruption with regulatory penalties, legal liabilities and reputational fallout
- Emerging vulnerabilities: AI-driven phishing campaigns, third-party vendor exposures and cloud misconfigurations extending risk beyond the organization's perimeter
The implications are profound: cyber risk has evolved beyond a technical hazard managed by IT departments. It is now a governance priority, requiring an integrated oversight model that aligns asset protection, layered defenses, threat detection and response, financial controls and mission resilience under the board's stewardship.