Why Nonprofits Are Now Prime Targets for Donation Scams and Phishing

Nonprofits rely on trust, strong donor relationships, and steady year-end giving. Cybercriminals understand this, and they have learned to take advantage of the busy fundraising season. As inboxes fill up and staff juggle more responsibilities, attackers blend their messages into legitimate donor communication and hope someone lets their guard down.

Over the last year, many nonprofits have reported an increase in donation-related scams. These incidents often feel personal because they target the people and supporters who keep the organization running. Smaller teams, older systems, and limited security budgets make nonprofits an easier target than many realize.

How Donation Scams Usually Start

Most scams begin with a simple email that looks like it came from a donor, board member, partner organization, or even your own staff. The message may ask to update banking details for a recurring gift, discuss a large donation, or request help with an urgent financial matter. In other cases, attackers pretend to be your nonprofit and solicit fake donations from your supporters.

Once a conversation begins, the attacker tries to guide the recipient toward sending money, gift cards, or sensitive information. During the giving season, when offices are busy and communication increases, these messages often feel like routine work.

Why Criminals Are Focusing on Nonprofits

Several trends are driving this surge in attacks:

1. Increased donation activity from November through January

Attackers know this is when nonprofits receive the most communication and online gifts.

2. Smaller internal IT teams

Many organizations simply do not have the resources to monitor every system closely.

3. Public information is easy to misuse

Board members, donor names, and fundraising details are often listed online. Attackers use this to create believable emails.

4. Fast-paced, relationship-driven cultures

Nonprofits often move quickly to help people. Attackers count on that sense of urgency.

5. Cloud services that are not fully secured

Email platforms, donor tools, and payment portals can be vulnerable if not properly configured.

What Happens When a Scam Succeeds

A single fraudulent message can result in:

• Lost donations

• Compromised supporter data

• Damage to community trust

• Financial or legal reporting requirements

• Negative publicity

For many nonprofits, the reputational impact can be more painful than the financial one.

How to Reduce the Risk Before the Busy Season

A few practical steps can make a major difference:

1. Confirm unusual financial requests

If something feels off, confirm it by calling a known contact. Never use the number listed in the email.

2. Give staff a quick refresher on common scams

Even a short training session can help employees and volunteers catch suspicious messages.

3. Turn on multi-factor authentication

MFA blocks most attempts to break into email accounts.

4. Use tools that monitor email for suspicious activity

Security platforms that scan for unusual behavior can catch threats early.

5. Review your donation systems

Make sure your payment tools use encryption, MFA, and fraud detection.

6. Update your response plan

If something goes wrong, everyone should know what steps to take next.

Now Is the Time to Strengthen Your Defenses

Cybercriminals follow opportunity, and nonprofits see the highest amount of activity at the end of the year. This is the best time to tighten security, update internal processes, and prepare your team for the busy season.

If you would like help reviewing your email setup, training staff, or identifying vulnerabilities, Encompass IT can assist you. A small amount of preparation now can protect your donors, your mission, and the people who count on you.