Not All Tech is Created Equal: A Quick Framework for Evaluating Third-Party Vendors

Your nonprofit runs on technology. From donor management systems to volunteer coordination platforms, third-party digital tools have become the backbone of modern mission-driven work. But here's what many nonprofit leaders don't realize: not all tech vendors are created equal, and some could be putting your organization—and the people you serve—at serious risk.

The Hidden Dangers Lurking in Your Tech Stack

Every time you sign up for a new software platform or integrate a digital tool, you're essentially handing over keys to your nonprofit's most valuable assets: donor information, client data, financial records, and organizational insights. While most vendors operate with good intentions, the reality is that data breaches, security vulnerabilities, and privacy violations happen more often than you might think.

But vendor risks aren't the only concern. Many nonprofit staff unknowingly expose organizational data through everyday activities like connecting to public WiFi networks at conferences, coffee shops, or airports. When you click "agree" to those WiFi terms of service without reading them, you might be granting the network provider broad rights to monitor, collect, and even sell your browsing data. Remember: data is digital gold, and every piece of information about your organization, donors, and operations has value to someone.

These seemingly innocent connections can expose sensitive emails, donor communications, and confidential documents to third parties who may use this information for marketing, sell it to data brokers, or worse. What happens at that fundraising conference when you're responding to donor emails over the hotel's "free" WiFi could have consequences long after you return to the office.

Consider this: when a for-profit company experiences a data breach, they face financial losses and reputation damage. When a nonprofit faces the same situation, the stakes are often higher. You could lose donor trust that took years to build, face regulatory penalties that strain already tight budgets, or worst of all, compromise the safety and privacy of the vulnerable populations you serve.

A Simple Framework for Safer Vendor Selection

The good news? You don't need a cybersecurity degree to make smarter vendor choices. Here's a practical, risk-based framework that any nonprofit leader can use:

Start with the Stakes Assessment

Before evaluating any vendor, ask yourself: What would happen if this data got into the wrong hands? High-stakes data includes donor payment information, client personal details, and sensitive organizational documents. Low-stakes might be general marketing analytics or public event information. The higher the stakes, the more rigorous your evaluation should be.

The Five Essential Questions

When vetting potential vendors, always get clear answers to these questions:

1. Where is your data stored?
2. How do you protect data in transit and at rest?
3. What happens to our data if we stop using your service?
4. How do you handle security incidents?
5. Can you provide references from similar organizations?

Red Flags to Watch For

Some warning signs should make you think twice: vendors who can't or won't answer basic security questions, those offering deals that seem too good to be true, platforms that require excessive permissions or access, and companies with unclear privacy policies or terms of service.

Beyond Vendors: Everyday Digital Habits Matter Too

While you're evaluating third-party vendors, don't forget to examine your team's daily digital practices. Beyond WiFi networks, consider other common scenarios: staff downloading "free" productivity apps that request access to contacts and files, using personal cloud storage accounts for work documents, clicking "accept all cookies" on websites without understanding data collection practices, or sharing organizational information through social media platforms that may harvest and monetize that data. Train everyone to recognize when they're being asked to agree to terms that might compromise organizational data. A simple rule of thumb: if something is free and asks for extensive permissions, your data is likely the real price you're paying.

Building a Culture of Digital Awareness

Remember, vendor evaluation isn't a one-time task; it's an ongoing responsibility. Technology landscapes change, vendors update their practices, and new risks emerge regularly. Make it a habit to review your tech stack annually and stay informed about digital security trends affecting nonprofits.

Consider appointing a staff member or board volunteer as your "digital steward"—someone who stays current on these issues and can help evaluate new tools. Many state nonprofit associations and sector-specific organizations offer resources and training on digital security that can help your team stay informed.

The Path Forward

Your nonprofit's mission is too important to be derailed by preventable digital risks. By taking a thoughtful, systematic approach to vendor evaluation, you're not just protecting data—you're protecting the trust that donors, clients, and communities place in your organization.

The framework outlined here isn't about becoming a cybersecurity expert overnight. It's about asking the right questions, making informed decisions, and building sustainable practices that will serve your nonprofit well into the future.

Ready to dive deeper? Join our upcoming webinar with Oak AI on June 26th at 2PM ET, for Click, Trust, Regret? Avoiding Today's Privacy Pitfalls, where we'll explore advanced strategies for managing vendor relationships, protecting privacy, and building digital trust in 2025. We'll share real-world examples, answer your specific questions, and provide additional tools to strengthen your nonprofit's digital foundation.

Your mission deserves protection. It starts with the choices you make about the technology that powers your work.

Take the step to protect your nonprofit's data today!

Need help sooner? Book a call with a RoundTable expert for one-on-one guidance on how to protect your systems and support your sponsored projects more effectively.