Nonprofit CybersecurityRansomwareAI Threats

Jared Reagan

February 19, 2025

6 min read

🚨 The Rising Cybersecurity Threat to Nonprofits in 2025: How to Stay Protected

Nonprofit organizations, often operating with limited resources, are now among the top targets for cybercriminals. In 2025, nonprofits face escalating threats, including AI-driven phishing attacks, ransomware, and data breaches that compromise sensitive donor information and disrupt essential services.

Recent findings reveal alarming trends:

31% of nation-state cyberattacks now target nonprofits, second only to government entities.
64% of ransomware incidents in 2024 affected healthcare and nonprofit-adjacent organizations.
The average cost of a nonprofit data breach has risen to $4.7 million, factoring in ransom payments, fines, and operational downtime.

This article explores why nonprofits are increasingly targeted, how attackers exploit vulnerabilities, and how organizations can protect themselves.

🎯 Why Are Nonprofits Prime Targets for Cybercriminals?

Nonprofits are attractive targets for cybercriminals due to their unique vulnerabilities:

Sensitive Donor Data: Nonprofits store valuable information, including donor payment details, health records for service recipients, and personal identifiers. In 2024, the DonorView breach exposed 1.29 million donor records, causing reputational damage and financial loss.
Limited IT Resources: With budget constraints, many nonprofits struggle to maintain robust cybersecurity frameworks. Only 26% of nonprofits conducted a cybersecurity risk assessment in 2024.
Reliance on Third-Party Vendors: Many nonprofits use platforms like Salesforce NPSP, Blackbaud, or Donorbox for donor management. Attackers often exploit vendor vulnerabilities to gain access. In March 2024, the HealthEquity vendor breach exposed 4.3 million HSA records after attackers hijacked SharePoint credentials.

🚨 Top Cyber Threats Facing Nonprofits in 2025

1. Ransomware: The #1 Threat to Nonprofits

Ransomware attacks on nonprofits have skyrocketed, with 64% of healthcare and nonprofit-related breaches involving ransomware in 2024.

How It Works:

Attackers encrypt donor databases and operational systems, demanding ransom payments to restore access.
Double extortion tactics threaten to leak sensitive donor information if ransoms aren’t paid.

Real-World Example: The Change Healthcare ransomware attack in 2024 resulted in the exfiltration of 100 million records, disrupting essential healthcare services and causing $22 million in ransom payments.

How to Prevent Ransomware:

Enable Multi-Factor Authentication (MFA) across all user accounts.
Regularly back up donor and financial data to secure offsite storage.
Use Endpoint Detection and Response (EDR) solutions to identify ransomware attempts early.

2. AI-Powered Phishing and Deepfake Scams

Generative AI has revolutionized phishing attacks, making them harder to detect. In 2024, AI-enhanced phishing accounted for 56% of nonprofit breaches.

Key Trends:

Voice Cloning: Attackers use deepfake audio to impersonate nonprofit leaders, tricking staff into transferring funds.
Grant Application Scams: Fake emails from grant agencies (e.g., Gates Foundation) direct victims to phishing sites.
Credential Theft: Stolen Microsoft 365 and Google Workspace credentials are used to hijack accounts.

Example: In 2024, a phishing attack on MEDNAX Services compromised 1.29 million patient and donor records by stealing Microsoft 365 credentials.

Prevention Tips:

Train staff to identify phishing attempts.
Enable email filtering to block malicious messages.
Use password managers to generate unique passwords.

3. Supply Chain Attacks on Nonprofit Vendors

Nonprofits often rely on third-party platforms for donor management, accounting, and volunteer coordination. In 2025, 68% of nonprofit breaches involved third-party vendors lacking MFA and endpoint detection.

Example: The HealthEquity vendor breach exposed 4.3 million health savings account (HSA) records, impacting nonprofits offering health-related services.

How to Mitigate Supply Chain Risks:

Require SOC 2 Type II certification for vendors.
Conduct regular third-party risk assessments.
Implement zero-trust architecture to limit vendor access.

💰 Financial & Operational Impact of Cyberattacks

Cyberattacks on nonprofits don’t just compromise data—they also result in significant financial losses, reputational damage, and operational disruptions.

Cost Category	Average Impact (2024–2025)
💸 Ransom Payments	$1.2M to $4.8M per incident
📈 Regulatory Fines	$2.1M to $16M (GDPR, HIPAA)
🆔 Identity Monitoring	$8–$12 per exposed record
💔 Fundraising Losses	23%–41% drop in annual revenue
⚖️ Legal & PR Expenses	$480K to $2.3M per breach

Source: CyberPeace Institute, HIPAA Journal, Cambridge Wireless (2025).

Example: The Anthem breach—triggered by a phishing attack—resulted in $64.2 million in penalties and consumed 14% of annual program budgets for mid-sized NGOs.

🛡️ How Nonprofits Can Strengthen Cyber Defenses

Given the evolving threat landscape, nonprofits must adopt a multi-layered cybersecurity strategy. Here’s how:

1. Implement Zero-Trust Architecture

Enforce Multi-Factor Authentication (MFA) across all accounts.
Segment donor and financial databases from the main network.
Monitor user behavior with AI-driven anomaly detection tools. 💡 According to Sysdig, 98% of ransomware incidents could have been prevented with MFA.[^6]

2. Enhance Phishing Prevention & Staff Training

Conduct quarterly phishing simulations using nonprofit-specific templates.
Train staff to identify fake grant applications, payment requests, and deepfake scams.
Enable email filtering to block malicious attachments and links. 💡 In 2024, 56% of nonprofit breaches originated from phishing attacks.[^8]

3. Improve Vendor Risk Management

Require third-party vendors to have SOC 2 Type II certification.
Conduct quarterly access reviews for shared Google Drive and SharePoint folders.
Ensure vendors implement endpoint detection and encryption for shared data. 💡 In 2024, 68% of nonprofit breaches involved vendor-related vulnerabilities.

4. Secure Donor Data with Backup & Encryption

Regularly back up databases to offsite, encrypted storage.
Use SSL/TLS encryption for donor portals and payment systems.
Monitor unusual data access patterns using endpoint detection platforms.

🔑 Case Study: How One Nonprofit Prevented a Breach

In Q4 2024, a California-based charity running mental health services avoided a ransomware incident by:

Enforcing Multi-Factor Authentication (MFA) across Microsoft 365 accounts.
Implementing daily encrypted backups for donor and patient data.
Conducting biannual phishing training for staff.

When attackers attempted to breach their donor platform via compromised vendor credentials, MFA blocked access, and EDR alerts allowed IT staff to isolate the threat.

🚀 How Taqtics Helps Nonprofits Stay Secure

At Taqtics, we provide nonprofits with tailored cybersecurity solutions, including: ✔️ Free Cybersecurity Audit: Identify vulnerabilities in your tech stack. ✔️ Offensive & Defensive Simulations: Train staff to recognize real-world phishing and ransomware tactics. ✔️ Managed Security Services: Ongoing monitoring and defense against cyber threats.

💡 Don’t wait until an attack happens. Schedule your free cybersecurity audit today and protect your mission.

📚 Sources

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