Fiscal sponsorship can transform struggling nonprofit projects into thriving organizations with access to funding, expertise, and organizational support. Yet in our increasingly connected world, this protective umbrella can quickly become a security liability if proper safeguards aren't in place.
The numbers tell a sobering story. Infosecurity Magazine reports that email-based attacks against nonprofits have surged by 35.2% this year alone, making the sector one of the most targeted after government agencies. When nonprofit leaders are asked about their cybersecurity readiness, the response is consistently troubling: most admit they're underprepared to handle today's sophisticated threats.
Here's what keeps cybersecurity experts up at night: when one project under your sponsorship umbrella gets compromised, the damage rarely stops there. It spreads quickly and far across your entire portfolio.
Picture this scenario: a passionate volunteer wraps up their six-month project commitment and moves on to their next cause. Six months later, their old login credentials become the gateway for cybercriminals to access your donor database. Sound far-fetched? It shouldn't.
The Verizon Data Breach Investigations Report consistently shows that nearly 70% of breaches can be traced back to human factors, ranging from phishing attacks that deceive well-meaning staff to the misuse of privileges or credentials that should have been deactivated long ago. Without rock-solid processes for setting up accounts, managing permissions, and consistently removing access when someone leaves, every former team member becomes a potential security risk.
The solution isn't complex, but it requires discipline: implement multi-factor authentication across all systems, establish role-based permissions that give people access only to what they need, and create ironclad deprovisioning procedures that activate the moment someone's involvement ends.
Data breaches don't just make headlines—they devastate budgets. IBM's Cost of a Data Breach Report reveals that the global average cost hit $4.88 million in 2025, marking a 10% increase from just two years ago. While nonprofits typically experience lower financial losses, the impact cuts deeper than dollars.
Consider what happens when donor information gets exposed or grant data falls into the wrong hands. The financial hit might be manageable, but the reputational damage and erosion of trust can take years to repair. For organizations already stretching every dollar, this one-two punch can be fatal.
Proactive fiscal sponsors get ahead of this risk by establishing bulletproof policies for handling sensitive information, implementing encryption and backup solutions consistently across all projects, and ensuring every sponsored project has access to secure collaboration tools.
Your people are both your strongest defense and your most vulnerable point of attack. Research consistently shows that compromised credentials remain a leading cause of breaches, while phishing remains the entry point for most successful attacks.
The challenge is particularly acute in the nonprofit world, where volunteers rotate frequently, project leaders wear multiple hats, and cybersecurity training often takes a backseat to mission-critical work. Meanwhile, cybercriminals are getting more sophisticated every day, crafting emails and websites that can fool even tech-savvy individuals.
The good news? Even modest investments in training yield significant returns. Quarterly phishing simulations, password management workshops, and clear protocols for reporting suspicious activity can dramatically reduce your risk profile. When your team knows what to look for and how to respond, they transform from potential victims into your first line of defense.
Today's compliance landscape has evolved far beyond financial oversight and grant reporting. Donors, regulators, and partners now expect nonprofits and their fiscal sponsors to demonstrate robust cybersecurity practices. This shift represents both a challenge and an opportunity.
By documenting comprehensive security policies, conducting regular technology reviews, and setting clear security expectations for all sponsored projects, fiscal sponsors can transform compliance from a checkbox exercise into a competitive advantage. When stakeholders see that you take cybersecurity seriously, you're not just meeting requirements—you're building trust.
One of the biggest misconceptions in fiscal sponsorship is that cybersecurity risks can be contained. In reality, today's interconnected systems mean that a breach in one sponsored project can quickly cascade throughout your entire organization.
When attackers compromise a single email account, they don't stop there. They use that foothold to explore shared donor databases, cloud collaboration tools, and financial systems. They look for ways to escalate their access and maximize their impact. In the world of cybersecurity, there's no such thing as an isolated incident.
This interconnectedness demands a unified approach: standardized cybersecurity policies across all projects, rigorous update and patching schedules, and centralized monitoring tools that provide real-time visibility into the health of every system under your umbrella.
At RoundTable Technology, we created the Security Awareness Fundamentals Education (SAFE ) Program specifically to address the unique cybersecurity challenges facing fiscal sponsors. We understand that your organization needs training and resources that are not only effective but also engaging and accessible.
SAFE delivers a standardized, cost-effective cybersecurity and IT oversight solution that bridges the critical gaps between sponsors and their sponsored projects. For fiscal sponsors, SAFE offers a particularly powerful advantage: it ensures that both your internal staff and all your sponsored projects receive consistent, high-quality cybersecurity.
When every project under your umbrella operates with the same level of security awareness and preparedness, you don't just reduce individual risks—you strengthen the entire ecosystem. In cybersecurity, we truly are stronger together.
Fiscal sponsorship comes with a unique set of responsibilities—financial, legal, and increasingly, digital. Protecting your mission today means protecting not only your own staff and systems, but also the many projects you support. Cybersecurity is no longer a “nice to have”; it’s a core responsibility for every fiscal sponsor.
Our mission is to help fiscal sponsors build the right systems, policies, and technology to manage their responsibilities effectively. With the right foundation, your fiscal sponsorship program can become a strong and sustainable way to advance your mission.
That’s why we’re inviting you to join our upcoming free webinar:
Shared Security, Shared Strength: Protecting Fiscal Sponsors and Their Projects , on September 10th at 2 PM Eastern. This session is designed specifically for fiscal sponsors, offering practical strategies, accessible training ideas, and expert guidance you can put into practice right away. You’ll leave with actionable steps to strengthen defenses and foster a culture of shared protection across all your projects.
Have questions now? Hop on a quick call with one of RoundTable’s experts—we’re here to help you find the right digital solutions for your fiscal sponsorship journey.