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Articles From Lumsden McCormick

New Tech, New Risks: How Nonprofits Can Stay Ahead

Technology evolves at lightning speed. Just a few years ago, artificial intelligence (AI) was barely on the radar for most organizations. Today, it’s a game-changer — and nonprofits are exploring how AI can boost efficiency and impact. But rapid innovation brings new challenges. The good news? There are practical, cost-effective ways to protect your organization while leveraging the benefits of emerging technologies.

Built-In Safeguards You Might Already Have

Some tools you use may already help reduce risk. For instance, cloud-based accounting platforms often include embedded security controls. These systems can automatically track grant spending in real time, helping you quickly correct errors and maintain compliance with funders.

AI is pushing these capabilities even further. While it’s true that AI has given cybercriminals new weapons, it also offers powerful defenses. Automated tools can analyze massive datasets at speed, flag anomalies, and detect fraud before it escalates — all without breaking your budget.

Strengthen Your Cybersecurity Game

Remote work and multi-device access have expanded the “attack surface” for hackers. If your nonprofit still relies solely on passwords — or even passwords plus multifactor authentication — it’s time to upgrade.

Consider these advanced strategies:

  • Role-Based Access Controls: Limit system and data access to those who need it for their roles. For example, only finance staff and select executives should see full financial data.
  • Just-in-Time Access: Grant permissions only when needed and for a short duration.
  • Least Privilege Principle: Provide users with just enough access to perform their tasks.
  • Microsegmentation: Divide your network into secure zones, each with its own access rules.
  • Zero Trust Framework: Authenticate every user, device, and connection for each request — regardless of location. This approach evaluates identity, device, and data sensitivity before granting access.

Tap Into Available Resources

If you have in-house IT support, start by reviewing these options with your tech team. You might also leverage the expertise of board members or volunteers with technology backgrounds. And if you need help analyzing costs or implementing stronger internal controls, we’re here to guide you every step of the way.

New Tech, New Risks: How Nonprofits Can Stay Ahead

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Jill is an expert working with health care and human service organizations including hospitals, nursing homes, diagnostic and treatment centers, mental health service providers, and medical practices. She also works with real estate and nonprofit organizations in the areas of auditing, Single Audit, HUD projects, information returns, and financial reporting. Jill is integral to our Health Care and Nonprofit services groups managing our larger hospital and human service organization clients. She is a past Regional Executive for the Healthcare Financial Management Association (HFMA) Region 2; she also is a past President of the Western New York Chapter.

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