20 Best Accounting Software for Nonprofits in 2024

The Blackbaud brand is a well-known provider in the nonprofit industry and offers CRM solutions to help you manage and engage donors. A business can track interactions, segment contacts, and manage communications based on pre-determined criteria. Additional modules can be purchased to create a custom solution that is typically used by larger nonprofits with an extensive digital infrastructure. Nonprofits often rely on grants and contracts to fund their programs and services.

QuickBooks does have nonprofit versions of their Desktop Enterprise solution, automating of fund and program accounting, and customization to create lists of members/donors and track budget by programs or funds. Using software geared for commercial for-profit operations can lead to a number of issues for nonprofits and government entities. Fund accounting software is designed to enable improved allocation management of resources that have been designated for specific uses.

Support that is prompt and responsive is also critical when your nonprofit encounters issues or has a question. Nonprofits must establish internal controls to safeguard assets, prevent fraud, and ensure the accuracy of financial controls. Segregation of duties, review processes, and regular financial reconciliations are essential components of effective internal controls. If you’re intimidated by setting it up on your own, consider their $249 coaching option, which includes two hours of live support followed by 30 days of email support. This seemed to us like a reasonable price to set the system up efficiently and maximize its utility for your staff. More than 80 percent of small businesses use QuickBooks, so parent company Intuit must be doing something right.

  1. Between meeting with Board members, tracking volunteers, and applying for grants, you’re probably low on spare time.
  2. All plans come with unlimited technical support and an amazing customer success team.
  3. Apart from that, you can bar the use of cash-on-hand or petty cash unless you have given authorization through a document signed via the application.
  4. You can also change the tax form to form 990, which is assigned to nonprofits.
  5. Users can monitor donations and deploy easy-to-use fund accounting through advanced features, such as customizable reports and donation receipts and tracking.
  6. Its fund accounting tool NetSuite for Nonprofits is designed to help users manage all their financial processes.

The product is used primarily in invoice creation and management but also sports very useful accounting features. Using the solution, you can manage and track invoices and even share the same–all from a single dashboard. It allows you to monitor all transactions while being able to generate and send out invoices in different currencies and languages. Its simple interface makes the platform easy to use, eliminating the steep learning curves that usually come with such systems. Though general-purpose accounting software is often less expensive than industry-specific solutions, NPOs must work harder to make general solutions fit their unique needs.

Accounting software specifically made for nonprofits addresses this need for specific reporting and has options for fund accounting, which we’ll get into in the next section. Churches and faith-based organizations also fall under the category of nonprofits. Unlike for-profit businesses, churches are not owned but rather are run by pastors, a church board, other governing bodies, https://accounting-services.net/ and staff who are often a combination of paid employees and volunteers. Faith-based organizations may operate missions around the world, and may operate independently or as part of a larger organization such as a diocese. Like other nonprofits, their revenue streams look different from for-profit businesses and they also require specific accounting software features.

Start with the list of requirements you created in the previous section. Consider consulting similar organizations in your community or market to see what software they’re using. This article will guide you in understanding the importance of leveraging the right nonprofit accounting software and maximizing its benefits.

Best for Nonprofit Cash Flow Management

Nonprofit Tech for Good offers two low-cost certificate programs for nonprofit professionals worldwide. The curriculum covers digital marketing, social media marketing, and online fundraising. Similarly, a grant might have specific conditions like the types of activities it can fund or allowances for overhead expenses. The grant conditions may also have a specific timeline for when funds can be used.

Why We Chose QuickBooks Online

There are nonprofit accounting software options that are made specifically for nonprofits, but you may also find that more general accounting solutions would work best for you. The best nonprofit accounting software depends on your organization’s needs. Here, we’ll explain the best accounting software for nonprofits and discuss the top features and functionality, pricing plans, and the pros and cons of each software.

Some of the links that appear on the website are from software companies from which CRM.org receives compensation. Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.

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FreshBooks’ software stands out for its ability to track expenses and restricted funding. For example, time-tracking tools tell you how long it takes an employee to complete a project’s task. Once you know the time employees spend on a project, you can allocate project funds to those employees. You can also connect a bank account and FreshBooks will generate best accounting software for nonprofits spending reports. Comparing software features is a first step in understanding key differences and benefits between various accounting solutions. It is important to note that more qualitative facets of the software, like customer support, ease of use, simple reporting, and accessibility for accounting novices are harder to quantify on the front end.

With it, DocuPhase can read the contents of scanned documents and use the information it gathered to fill forms. As a result, there is no need to manually enter data on the end of the user. Because of this feature, nonprofit organizations can automate payments to their suppliers based on the information from invoices. This cloud-based solution offers a comprehensive suite of tools to simplify the complex processes and requirements involved in nonprofit payroll and tax services.

It’s essential to go for a solution that suits your size and infrastructure, as not choosing the right nonprofit accounting software could lead to inefficient operations and waste of resources. MoneyMinder is the best accounting software for nonprofits that wish to flee from the complicated maneuvers of enterprise-level or standard nonprofit software. AccuFund Accounting Suite is the best accounting software for nonprofits and government agencies that need a full-on, customizable solution. But if you’re after a powerful, all-purpose program that can meet vast accounting needs for nonprofit organizations, then you have to consider QuickBooks Enterprise Nonprofit.

Add up to 40 users with custom permissions and securely manage thousands of donors, vendors, and items easily with QuickBooks Enterprise. Sign up to receive our weekly newsletter featuring news updates and resources about digital marketing and fundraising for nonprofits. By easily providing these to donors, you’ll be able to build trust and a level of comfort that will encourage repeat donations. With this system, nonprofit, education and government agencies can make informed decisions, keep organized, and be prepared for audits.

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