A Security Checklist for Foundations: What to Look for in a Grants Management System

Protecting sensitive data is a fundamental part of the grantmaking process. Foundations handle vast amounts of confidential information—including data about grantees, financial transactions, and program details. With data security threats becoming more sophisticated, native security features and built-in protocols are a core requirement of any grants management system (GMS), not merely an optional add-on.

Here are six essential security features to look for when evaluating a GMS.

1. Data Encryption, Firewalls, and Network Security

A secure GMS should use encryption to protect data both in transit and at rest. Encryption ensures that if data is intercepted, it remains unreadable to unauthorized parties. Look for systems that use industry-standard encryption protocols like AES-256 and TLS 1.2 or higher (as of this writing). Firewalls and Network Security Groups (NSGs) should also be implemented to control incoming and outgoing traffic. This helps prevent unauthorized access to applications and data.

Additionally, your GMS should secure your data by deploying robust network security measures behind the scenes. This includes the use of firewalls, conditional access, and privileged identity management.

2. Role-Based Access Controls (RBAC)

Not all users need access to all data. A GMS should offer role-based access controls, allowing administrators to assign permissions based on job responsibilities. This minimizes the risk of internal data breaches and ensures users only see the information relevant to their role. You should also be able to customize roles that align with specific job descriptions and assign these roles to your users, ensuring access is granted based on the principles of least privilege and segregation of duties.

3. Robust Authentication Mechanisms

Robust authentication mechanisms include single sign-on (SSO) with your identity provider and multi-factor authentication (MFA). MFA requires users to verify their identity using multiple forms of authentication, such as a password and a one-time code sent to their trusted mobile device. This added layer of security helps protect against unauthorized access and phishing attempts.

Single Sign-On (SSO) support enhances security and usability by allowing users to access multiple services with a single login credential. This not only simplifies the user experience but also reduces the risk of password fatigue and strengthens security protocols by minimizing the number of credentials each user needs to manage.

4. Audit Logging and Monitoring

Detailed audit logs record user activities and system events. These logs are useful for both security monitoring and compliance purposes. A grants management system should allow foundations to monitor login attempts, data changes, and user interactions, making it easier to identify potential security threats.

5. Regular Security Updates and Compliance

Cybersecurity threats are continually evolving, necessitating that a secure GMS consistently monitors and updates its application to mitigate vulnerabilities effectively. Additionally, the system should comply with industry security standards such as SOC 2, GDPR, and CCPA, ensuring best practices in data protection.

6. Data Backup and Disaster Recovery

Data loss can be catastrophic for any organization. Regular data backups as well as maintaining and exercising disaster recovery plans ensure business continuity in case of data loss or system failure.

Safeguarding the Digital Future of Philanthropy

Data privacy is a shared responsibility between grantmakers and technology providers. By selecting a grants management system with these essential security features, foundations can safeguard their data and protect their grantees from potential security threats.

The security landscape is complex and always evolving. We are happy to talk through your security concerns and answer any questions that you may have! Connect with our team to learn more.