What nonprofits should look for in a SOC 1 report

Not-for-profit entities (NFPs) often outsource tasks such as payroll processing, cloud computing, and health care claims management and processing due to limited in-house resources and insufficient expertise in these areas to perform the required tasks efficiently. When tasks are outsourced, the NFPs are still responsible for establishing effective controls over those activities and, ultimately, the associated data. For example, when an NFP pays a third-party vendor to handle its payroll, it needs to know the service provider has the proper