The 6 Best Nonprofit Accounting Software
As financial operators ourselves, we know how critical and difficult it is to make the right decision when selecting software. But if you want to accept donations (which you undoubtedly do) you can’t just sign up for Zoho Books. Zoho Checkout is free as long as you accept only 50 donations—ever, not per month. Clients that need unlimited donations best accounting software for nonprofits in multiple currencies will need to add a $9 a month Zoho Checkout plan to their existing Zoho Books plan.
However, its complexity and cost can be overwhelming for smaller nonprofits. Blackbaud Financial Edge is best suited for large nonprofits that need enterprise-level financial management and can leverage its full suite of integrated nonprofit solutions. The best nonprofit accounting software should include all the core accounting features and functionality all businesses need, such as the ability to send invoices and track spending. It should also offer nonprofit-specific accounting functionality, such as the ability to receive donations, manage restricted funds and file Form 990.
Comparison of the Best Nonprofit Accounting Software
To combat this, MIP Fund Accounting does offer webinars, guides, and training to help familiarize users with the software. Nonprofit accounting software helps businesses manage their funding, grant budgeting, and donations. We’ve reviewed the top platforms for organizations of various sizes and sectors, including education, faith-based, and healthcare. One of such services is FastFund Accounting, a cloud-based fund accounting software that provides all the essentials for nonprofit accounting, including fund accounting and fundraising. While Aplos is our top overall pick, you may want to consider QuickBooks Enterprise Nonprofit Edition as an alternative. Although Aplos performs well in accounting, QuickBooks Enterprise edges ahead with its dedicated nonprofit edition, offering more tailored features for nonprofit organizations.
We like that users can create a separate financial record for each restricted fund, enabling transparent usage tracking and reporting. Intuit QuickBooks offers several plans, ranging from $35 to $235 per month ($17.50 to $117.50 per month for the first three months during the current promotion). Plan differences revolve around the number of users, customization options, inventory management, automations and expense tracking. You have to pay an extra fee for payroll services, starting at $45 per month. Look for solutions that offer nonprofit-specific features like fund accounting, donor tracking, and customizable reporting. Nonprofit accounting software is a bookkeeping program tailored to the needs of tax-exempt organizations.
How does nonprofit accounting software handle restricted funds?
With a comprehensive understanding of your needs, use a guide like this one to consider the various options and select the best choice for you. Unlike many other options, Sage’s dashboard can’t be customized to include only the information and features that you need. If your accounting staff gets overwhelmed by technology, this could be a problem. However, Sage does offer some of the best help guides, which may help them bridge the gap. For reconciliation, expense and financial reporting and other core functions, we found Sage’s tools to be simple. If you have a payroll system you like, Sage will likely integrate well with it, particularly if you use Gusto.
Streamlined Tax Preparation
Blackbaud earned the second-highest score in nonprofit features, largely because of its status as a nonprofit ERP. The only reason it didn’t receive perfect marks is the absence of member management features. That said, it performed well in accounting, with only minor misses like receipt capture and mobile app functionality. In our expert opinion, the benefits of Blackbaud being an ERP outweigh the lack of these minor features. For just $16, you gain added convenience with features like automated transaction imports.
Automatic bank transfer uploads keep financial data current and reduce errors. Wave supports donation tracking and allows receipt scanning for easier expense management. Wave provides comprehensive tools that support financial health without the added cost. Its customizable financial reporting enhances planning and strategy, with additional tools to compare actual reports to scenarios. Xero offers cash management, donation tracking, and multi-entity options.
Best Nonprofit Accounting Software Summary
- NerdWallet compared more than a dozen accounting software products, and Aplos is our top choice for most nonprofits.
- Its ease of use really stands out, with multiple customer service channels that make it simple for users to get help when they need it.
- For reconciliation, expense and financial reporting and other core functions, we found Sage’s tools to be simple.
- Payroll services start at $20 per month and bookkeeping support starts at $149 per month.
MIP Fund Accounting, formerly Abila MIP or Sage 100 MIP, is our best overall pick because of the depth and breadth of its features. MIP also covers payroll, HR, timekeeping, fixed asset management, and grant management through 25 modules. Unfortunately, there aren’t many free nonprofit-specific accounting software options.
Along with grant management, budgeting, and nonprofit revenue recognition, these modules can all enhance nonprofits’ financial management. We also like FastFund’s payroll module, which can handle various tax-exempt statuses of employees, highly relevant for nonprofit organizations. Unfortunately, this module comes at an extra cost on top of the main system, with its lowest price being $50/month for 1-2 employees. Beyond payroll, FastFund provides fundraising CRM and fund accounting modules, including general ledger, accounts payable and receivable, and direct and indirect cost allocations. However, Wave doesn’t offer fund accounting or any other nonprofit-specific features, so we hesitate to recommend it to nonprofit bookkeepers and treasurers. Unlike most software for nonprofits, NonProfitPlus includes inventory management, which is crucial if you stock merchandise (like T-shirts and mugs) to raise money or reward donors.
Nonprofit work is more than just soul-fulfilling work like community-building programs, heart-warming success stories, and world-changing missions. It’s boring stuff like operations and payroll and accounting—which means your accounting software needs to hit the mark, not just with numbers, but with solutions tailored to the nonprofitsphere. Because nonprofits have unique challenges around budgeting and compliance, it’s crucial to pick software that aligns with your goals. If choosing a financial management platform sounds overwhelming (or incredibly boring), read on! We’re breaking down what to look for in nonprofit accounting software, highlighting the must-have features that can boost your operational efficiency, and sharing our picks for 2025. Basically, if you want to streamline your accounting processes and manage volunteers without hassle, Aplos is an excellent choice.
Nonprofit accounting features enable NPOs to manage their funding sources fully, ensuring every dollar and donor is accounted for while their accounts are accurate through proper bank reconciliation. This includes the financial management of online donations from crowdfunding or foreign sources, which must be reported along with an NPO’s main funding. We found Aplos Fund Accounting best for small-midsized churches because of its user-friendly UI and donor management. Aplos covers donation tracking and event registration, providing integrated online donation forms and detailed reporting capabilities. It also features a donor database with customizable profiles, segmentation tools, and integration with email providers for personalized communication. We like its straightforward design for users like volunteer church treasurers who don’t have extensive accounting backgrounds.
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