In a perfect world, a nonprofit’s tech stack would automatically uphold the highest standards of security and reliability. But often, it’s up to each nonprofit to determine credibility. So how can you be sure that your software is secure and compliant? Check for specific compliance certificates. They’re the key indicators to rely on.
Among crucial certificates, SOC 2 Type II is essential (along with PCI, ISO 27001, and others). For enterprise nonprofits especially, comprehensive risk assessment and management requires a step further than the standard compliances many software solutions offer.
SOC 2 Type II compliance offers a framework to demonstrate an organization's commitment to data security. Let’s explore what SOC 2 Type II compliance is, its benefits, and why it is crucial for nonprofits looking to enhance their tech stack.
What is SOC 2 Type II nonprofit compliance?
SOC 2, or Service Organization Control 2, is a framework developed by the American Institute of CPAs (AICPA). It helps organizations, especially those in the tech sector, demonstrate their commitment to data security through stringent security controls known as Trust Services Principles. These principles cover five key areas:
- Security: protecting systems against unauthorized access
- Availability: ensuring systems are operational and accessible as agreed
- Processing Integrity: ensuring system processing is complete, accurate, and timely
- Confidentiality: protecting information designated as confidential
- Privacy: managing personal information in accordance with privacy notices and regulations
SOC 2 Type II certification is more than a credential—it's an ongoing commitment to secure data management and operational excellence. It signifies that nonprofit software processes and policies are consistently followed and verified through annual audits.
The benefits of SOC 2 Type II for nonprofit compliance
1. Ensuring data protection
Nonprofits handle sensitive information, including donor details and financial records. SOC 2 compliance ensures that the platform used by nonprofit organizations follows the strongest security measures to protect this data from breaches and unauthorized access. This is particularly important in maintaining the trust of donors who expect their contributions to be handled securely.
2. Building trust and credibility
For nonprofits, establishing trust with donors and stakeholders is crucial. Using SOC 2-compliant software demonstrates a commitment to stringent security practices, ensuring that donor data is protected with the highest standards. The SOC 2 Type II certificate makes nonprofits more attractive to potential donors and partners.
3. Continuous security assurance
SOC 2 certification is an ongoing process with annual audits. This continuous oversight provides nonprofits with the assurance that their platform’s security controls are effective and up-to-date, helping to identify and mitigate any potential security threats promptly.
4. Future-proofing operations
SOC 2 certification ensures adherence to industry standards, maintaining long-term, robust internal practices to secure your organization's information. Partnering with a SOC 2 Type II compliant solution means you can rest assured you won’t need to change your technical provider anytime soon, as you can be confident in its security and operational excellence.
Takeaways on nonprofit compliance
It’s crucial for nonprofit technology providers, especially those that help process donations, to signal to customers and partners that robust security policies and procedures are in place to protect their data.
At Fundraise Up, we’re SOC 2 Type II compliant because we understand that nonprofits deserve the highest level of security for their organizational and donor data. This level of commitment to information security and compliance sets us apart from other solutions for nonprofits that may lack such rigorous certifications.