However, choosing the best accounting software for nonprofit organizations is not a simple task.
It involves finding a solution that streamlines financial management, enhances transparency, and ensures compliance with the specific needs of the nonprofit sector.
To help you out, we’ve conducted in-depth research and rounded up 13 of the top accounting software for nonprofit organizations in the market.
Whether you need an affordable tool that provides basic accounting features or a more complex solution with advanced reporting and functionalities, this list has you covered.
Let’s get to it.
How We Chose the Best Accounting Software for Nonprofit Organizations
- Core Accounting Features: The accounting software on this list provides the core accounting features you need for transparent, accurate, and compliant financial reporting. They provide the necessary features to demonstrate accountability to stakeholders.
- Additional Functionality: We looked for the best accounting software for nonprofit organizations that go beyond basic fund accounting. They provide specialized features that serve the unique needs of the nonprofit sector, such as donation tracking and grant management.
- Ease of Use: A good accounting software solution should be easy to use, even for beginners. With this in mind, we’ve included tools for both beginners and experienced users.
- Customer Support: Excellent customer support provides a reliable lifeline that ensures the software’s smooth and efficient integration into your operations. For this reason, we’ve only listed tools that offer responsive customer support in a variety of formats.
- Customization: We also picked accounting software for nonprofits that support customization. They enable organizations to generate accounting reports and create workflows that cater to their specific needs or the requirements of sponsors and donors.
- Cost: Aside from the criteria above, cost is an important factor in determining the best accounting software for a nonprofit organization. That’s why we’ve listed a wide variety to cater to different budgets. There are affordable plans, higher-priced ones with extra functionalities, and those that offer custom pricing.
10 Industry-Specific Accounting Software for Nonprofit Organizations
We start this list with accounting software tools that are designed specifically for nonprofit organizations.
They offer industry-specific features that streamline fund accounting, enhance reporting capabilities, and simplify compliance with regulatory standards.
1. Aplos
Image via Aplos
Aplos tops this list of accounting software for nonprofit organizations. It’s one of the best choices for faith-based organizations.
This accounting software enables fund tracking so you can monitor the sources of your finances.
It provides numerous features to promote accountability in your nonprofit, such as fund-based balance sheets and income statements. You can also create reports that compare the budget to actual spending for each fund or tag.
There are tools available to help you drive more donations, such as online donation forms and the Text to Give feature.
Alpos also offers a CRM database, where you can create donor profiles and segment your donor list for more personalized communication and retention strategies.
Key features
- Donation reporting
- Fund reporting
- Fixed asset tracking
- Automated donation tracking
- Customizable and mobile-friendly donation forms and widgets
- Recurring transactions
- Integrated CRM tool
- Website builder
- Text to Give feature
- Advanced budgeting tools
Pros
- Fundraising tools
- Reliable customer support
- Customizable chart of accounts
- Regular and free updates
Cons
- Need high-tier plans for fund, project, and campaign-specific budgeting
- Less intuitive reporting feature
Pricing
Aplos provides a 15-day free trial without needing a credit card.
Here are the paid plans:
- Lite: $79 per month
- Core: $99 per month
- Advanced: Starts at $189 per month
Image via Aplos
Usability
- Moderately easy to use
Tool Level
- Intermediate
2. AccuFund
Image via AccuFund
AccuFund is a suitable solution for large nonprofits with a sizable workforce. If you’re looking for an onsite or online accounting solution for nonprofit organizations and local governments, you’ll find it in AccuFund.
It offers fund accounting, powerful reporting capabilities, a customizable dashboard, automation features, and a lot more.
What makes AccuFund one of the best accounting software for nonprofit organizations is its comprehensive suite of tools. They go beyond basic accounting to include other functionalities tailored to nonprofit organizations, such as:
- Payroll management
- Grants management
- Human resources management
- Loan tracking
- Automation workflow
- Budget development
Key features
- Powerful third-party integration capabilities
- Report scheduler
- User-defined financial reporting
- Encumbrance accounting capabilities
- Multiple budget versions
- A form designer for customized forms
- Database with complete data integration
- Capability to add supporting images for all transactions
- Accounts payable
- Employee self-service portal
Pros
- Employee management
- Highly scalable
- Diverse range of add-on modules
- User-based security
Cons
- Less intuitive reports feature
- May have a long learning curve for beginners
Pricing
- Pricing is not readily available on its website. You may contact the AccuFund sales team for pricing information.
Usability
- You need significant time to learn how to use some of the features.
Tool Level
- Intermediate/Expert
3. Blackbaud
Image via Blackbaud
Blackbaud Financial Edge NXT is a powerful fund accounting software for nonprofit organizations. It can create intuitive workflows and automate routine tasks.
What makes Blackbaud one of the best accounting software for nonprofit organizations is it helps improve the transparency of financial records.
You can create reports based on projects, grants, or any unique characteristics that fit your current needs. It also allows you to create and manage budgets for each restricted fund.
When the need arises, you can show your stakeholders the financial activities associated with each fund and grant without running a report.
It also allows built-in integration with other fundraising solutions from Blackbaud, such as Raiser’s Edge NXT.
Key features
- Automated reconciliation of bank accounts and credit cards
- Automated budgets and reports
- A single database for important documents, such as donor agreements, grants, and contracts
- A visual chart organizer for more flexible and accurate reporting
- Visual representation of financial performance
- An Insight Designer for flexibility in presenting your financial metrics
- Advanced security measures
- Powerful audit trails
- Advanced expense management that includes automated routing rules and budget checks
- Blackbaud University for free training on products and best practices
Pros
- Features to help nonprofit organizations meet compliance requirements
- Additional tools available for fundraising, marketing, and grant management
- Extended budgeting capabilities
- Flexible chart of accounts
Cons
- Less intuitive features
- Complicated customer support system, which might cause problems when the first support representative isn’t able to help
Pricing
- Pricing isn’t readily available on the website. Contact customer care for a custom quote.
Usability
- The interface is not intuitive.
Tool Level
- Intermediate/Advanced
4. QuickBooks
Image via QuickBooks
QuickBooks offers several features for nonprofit organizations, including cloud-based accounting tools. However, the QuickBooks Enterprise nonprofit accounting software has more features tailored for nonprofit organizations.
Besides accounting features, you get:
- Over 200 built-in reports customized for nonprofit organizations
- Donor management tools
- Built-in templates
A Salesforce CRM connector is also available if you need more advanced donor management.
This accounting software system is one of the best solutions because it provides access to other essential tools, such as a payroll software solution.
The QuickBooks Enterprise accounting software for nonprofit organizations is a desktop app. However, there’s an alternative tool with cloud access.
Key features
- Budget tracking by fund or program
- Easy expense sorting
- Grant and donor management
- Bank reconciliations
- Customizable bill and PO workflow approvals
- Class-based reporting
- Powerful reporting and charts to keep track of performance
- Bill management
- Employee expense management
- Online data backup
- App integration
Pros
- Financial statements and donor and grant management in one tool
- Seamless integration with popular tools for nonprofit organizations like Kindful
- Payroll management directly from QuickBooks
- A wide range of advanced features, particularly in reporting
Cons
- Extra cost for additional user license
- Can be challenging for beginners to set up
Pricing
With QuickBooks, you can choose either to get a 30-day free trial or a 50% off discount for 3 months if you buy right away. The paid plans are:
- Simple Start: $30/month for 1 user
- Essentials: $60/month for 3 users
- Plus: $90/month for 5 users
- Advanced: $200/month for 25 users with custom access
Image via QuickBooks
There are also Enterprise plans available, with the following starting prices:
- Gold: $1,922/year
- Platinum: $2,363/year
- Diamond: $4,668/year
Image via QuickBooks
Usability
- The learning curve may be steep for some beginners.
Tool Level
- Intermediate/Advanced
5. FastFund by Araize
Image via Araize
FastFund by Arize is an accounting software for nonprofit organizations created by nonprofit software experts.
It helps you:
- Create financial statements that are FASB-compliant
- Manage your cash receipts and disbursements easily
- Instantly generate the data you need for IRS Form 990 N, 990-EZ, and 990
What makes it one of the best accounting software for nonprofits is that you get the option to integrate fundraising and payroll services into the system.
Accounts payable, accounts receivable, and direct cost allocations are also available in the premium.
Indirect cost allocations and purchase orders are available as an add-on.
Users also get expert training in accounting and bookkeeping for nonprofit organizations.
Key features
- ASU 2016-14 compliant reports
- Customizable user-defined chart of accounts
- Integration with bank accounts through Plaid
- Powerful database filtering to create customized reports
- Automated budgets by grants, departments, programs, or funds
- Cost reporting based on grants or the organization’s operations
- Strict internal controls to maintain accuracy in the books
- Comprehensive audit trails
- Ability to create multiple control accounts for accounts payable, each with its subsidiary ledger
- Automatic posting of client activity into the general ledger and client subsidiary ledgers
Pros
- Option to pay for one service or a bundle of services
- No fixed contract, allowing users to cancel at any time
- Free support from nonprofit accounting experts
- User-friendly interface
Cons
- Limited customization of reports compared to other accounting tools like QuickBooks
- Not friendly to users without an accounting background
Price
FastFund provides a fully functional online trial version with a demo data set. Paid plans include:
- Standard: $45/month
- Premium: $100/month
Image via Araize
Usability
- Beginner-friendly
Tool Level
- Beginner/Intermediate
6. MoneyMinder
Image via MoneyMinder
MoneyMinder takes pride in being a suitable solution for nonprofit organizations that can’t afford to hire accounting experts.
With this nonprofit accounting software, your volunteers can manage your books without getting overwhelmed by complex processes and accounting jargon.
You can create a chart of accounts that fits the activities of your organization, budget reports, and forecasts.
The MoneyMinder Store feature lets you create and manage your nonprofit’s online store, where you can sell custom items, event tickets, food, etc.
You also can collect online payments and membership dues and accept donations using Stripe, PayPal, and more.
Key features
- Integration with bank accounts
- Customizable and budget-focused chart of accounts
- Membership and volunteer management tools
- Capability to track donations online and offline
- Unlimited bank registers
- Customizable templates for emails, giving statements, pledge reminders, and more
- Budget scenario analysis
- One-click reports, including reports for your 990-EZ or 990-N
- Volunteer time tracking
- Document library
Pros
- Unlimited users
- Multilingual support
- Volunteer management tools
- Free version with limited features
Cons
- Additional cost for integration with bank accounts
- Limited donor management tools
Pricing
The pricing is simple. There’s a 30-day free trial and a free plan afterward. The Full Edition plan costs $199/year.
Image via MoneyMinder
Usability
- Very user-friendly
Tool Level
- Beginner
7. NetSuite Cloud Accounting
Image via NetSuite
NetSuite is a powerful cloud ERP that provides some of the best solutions for financial management, accounting, CRM, human capital management, and more.
It also provides a powerful suite of cloud-based accounting software for nonprofit organizations.
It provides a wide range of tools, including fund management, financial management, grant accounting, and spend management, to help you improve operations and meet your goals.
You get to automate your transactions and maintain compliance when closing your books.
Provide your donors and other stakeholders with real-time data on the financial and operational performance of your organization. NetSuite provides real-time data and reporting for better decision-making.
Key features
- Real-time financial management
- GAAP-compliant fund accounting
- Personalized dashboard
- Automated grant accounting
- Built-in standard FASB reports
- General ledger
- Tax management
- Predefined GL custom segments for the chart of accounts
- Role-based metrics and analytics
- Charity Navigator-recommended scorecards to measure the efficiency of programs
- Automated spend management processes
- Multicurrency and multilingual functionalities, allowing organizations to meet taxation and legal compliance requirements for each location
Pros
- Supports the operations of global nonprofit organizations
- Highly customizable interface
- Supports global tax management
- A powerful and complete set of tools to manage all financial processes
- Highly scalable due to its cloud-based nature
Cons
- A wide variety of features that can overwhelm new users
- May be hard for beginners to create custom reports
Price
- You need to get a custom quote from the customer care team based on the number of users and optional modules you’d like to employ.
Usability
- Fairly easy to use
Tool Level
- Intermediate/Expert
8. Fund EZ
Image via Fund EZ
Fund EZ is an accounting software for nonprofit organizations that offers robust features. It includes a multi-segment chart of accounts that shows the true position of your programs, projects, funding streams, etc.
For easier analysis of your nonprofit’s progress from multiple angles, Fund EZ provides an unlimited number of dashboards with easy-to-read grids, pie charts, and bar graphs.
You can create custom reports based on the requirements of your donors and board members and even apply allocation.
This nonprofit accounting software lets you set up multiple cost centers. You can bill clients and allocate the revenue across your chart of accounts. You can also get fixed asset accounting and a fundraising platform as add-ons.
Key features
- Standard and customizable chart of accounts
- Direct and indirect allocation capabilities
- Regular and free software updates
- Access to new features
- Automated data backups
- Daily bank reconciliations
- Management of accounts payable and accounts receivable
- Batch processing of transactions
- Capability to control user access
- A graphical view of the organization’s KPIs
- Ability to create and track separate budgets for each chart of accounts segment or create multiple budgets within the same period
Pros
- Top-level security
- Very easy setup
- Intuitive interface, making it easy to sort through large volumes of data
- Superior customer support that includes screen sharing
Cons
- Extra cost for custom reporting
- Time-consuming customization of reports
Price
- Contact customer support for a custom price.
Usability
- Very intuitive interface
Tool Level
- Beginner/Intermediate
9. NonProfit+
Image via NonProfit+
NonProfit+ is one of the best all-in-one accounting software for nonprofit organizations.
In addition to fund accounting, you get support for:
- Grant management
- Donor management
- Board management
- Volunteer management
- Fixed asset management
The NonProfit+ accounting suite makes it easy to prevent the commingling of funds.
You can get additional features through the financial management suite. This includes accounts receivable and payables, currency management for global nonprofit organizations, and automated billing.
A procurement management suite is also available as an add-on.
Key features
- Flexible endowment accounting
- Encumbrance accounting to show your nonprofit’s true financial state
- Seamless grants management, including comprehensive reports
- Restricted fund management
- A budget checker tool that notifies users when going over the budget
- Donor management and customized reporting
- Streamlined communication with board members via a board management solution
- Volunteer management tool that enables volunteers to track time and expenses directly on the tool
- Automated audit trail
- A GL/Sub account structure for nonprofit fund accounting
Pros
- Unlimited users
- Powerful restricted funds management
- Built-in grant management
- A mobile app to keep track of your accounts anytime, anywhere
Cons
- Relatively outdated user interface compared to other nonprofit accounting software
- No free trial
Price
- Contact the customer support team for a custom quote.
Usability
- Fairly easy to use
Tool Level
- Intermediate/Advanced
10. MIP Fund Accounting
Image via MIP Fund Accounting
MIP Fund Accounting is a cloud-based, SaaS fund accounting software for nonprofit organizations.
Due to its scalability, it’s perfect for nonprofits that need a tool that can grow with them and adjust to their dynamic needs. You can buy the modules you currently need and add them as your organization grows.
You can use MIP Fund Accounting to generate accurate reports based on funding sources, programs, and locations. A customizable chart of accounts makes it easy to keep track of any number of funds, grants, locations, and projects.
You can create budgets against specific grants and multiple periods.
A major factor that makes it one of the best accounting software for nonprofit organizations is the capability to track volunteer hours. It also allows you to manage inventory, fundraising, and employees.
Key features
- Automated requisition/purchase order workflows
- Grant management
- Fixed asset management
- Inventory management
- Automated backups
- FASB and GASB-compliant reports that follow ROMA and Community Services Block Grant guidelines
- Budget reporting
- Accounts payable and receivable
- Integrated payroll software and HRMS to generate payroll reports and manage benefits
- Form designer
Pros
- Available on the cloud or as an on-premise solution
- No extra costs for grant management
- HR management features
- Excellent customer support
Cons
- Not as user-friendly as other accounting software for nonprofits
- Less comprehensive reporting
Price
- Contact customer report to get a customized price.
Usability
- The interface is not as intuitive as other software.
Tool Level
- Intermediate/Expert
Non-Industry-Specific Accounting Software for Nonprofit Organizations
These three accounting software cut across industry boundaries but are still effective in streamlining the financial operations of nonprofit organizations.
They provide robust functionalities for fund tracking, compliance management, transparent reporting, and more.
1. Xero
Image via Xero
Xero is an online accounting software for all businesses, including nonprofit organizations.
Its robust analytics can provide an accurate view of the financial health of your nonprofit, project short-term cash flow, and track critical financial metrics.
You can conduct more data-driven planning by comparing actual reports against alternative scenarios.
There may be several Xero alternatives for nonprofits, but it’ll be hard to find one that provides in-depth reports that are customizable via a drag-and-drop interface.
This is also one of the best accounting software for nonprofit organizations that need a tool to support employee payments and record management.
You can integrate Xero with apps for nonprofits to tailor-fit it to your needs.
Integrations are available for over 20 of some of the best CRMs, reporting tools, and bills and expenses apps for nonprofit organizations. Some popular integrations include Keela, MembershipWorks, and Hubdoc.
Key features
- Online payments via credit card, debit card, or direct debit
- Simple online recurring pay runs
- Invoicing and online quote creation tool
- Bill tracking
- Bulk reconciliation of bank transactions
- Support for multiple currencies
- Contact management
- Fixed asset management
- Online file storage
- Connection with over 21,000 banks
Pros
- Mobile app for on-the-go monitoring of your nonprofit’s financial status
- Integration with over 1,000 apps for additional functionalities
- Import of data from over 21,000 banks
- 25% discount for registered nonprofit organizations
- Accurate and convenient sharing of financial data with donors and other stakeholders
Cons
- Extra cost for payroll management
- A limit of 5 bills for bill tracking in the lowest tier plan
Price
Xero offers a 30-day free trial. Paid plans include:
- Early: $15/month
- Growing: $42/month
- Established: $78
Image via Xero
Usability
- Beginner-friendly interface
Tool Level
- Beginner/Intermediate
2. Sage Intacct
Image via Sage
Sage Intacct is a powerful business cloud accounting tool for all types of businesses, including nonprofit organizations with a global presence.
Sage Intacct lets you file taxes in different jurisdictions and manage different currencies.
It’s deemed one of the best accounting software for nonprofit organizations because of its diverse AI and automation features. With a single click, you can consolidate accounts and get real-time analytics on your nonprofit’s performance.
With Sage’s robust fund accounting capabilities, you can create separate statements based on revenue sources. You can also create customized accounts for each funder and more.
Key features
- A multidimensional database
- Digital board book that shows your nonprofit’s impact and financial health
- Capability to manage finances by dimensions, such as grants, donors, programs, and locations
- Budgets based on events, campaigns, programs, and funders, with the capability to track the actual figures
- Revenue recognition
- Grants tracking and billing
- Capital budgeting
- AI-powered general ledger
- Accounts receivable and accounts payable automation
- Native integration with ADP for payroll services
Pros
- High level of accuracy in cash management
- Multi-entity reporting and insights
- Automated revenue recognition feature
- Sage University for comprehensive training solutions
Cons
- Extra cost for essential tools, such as grants tracking and billing and digital board book
- Limited third-party integrations
Price
- Contact customer support for a custom price.
Usability
- Very beginner-friendly interface
Tool Level
- Intermediate/Expert
3. FreshBooks
Image via FreshBooks
FreshBooks is a comprehensive accounting software for nonprofit organizations.
You get a customizable chart of accounts that you can tailor to the specific needs and activities of your organization.
One of the best capabilities of this financial accounting software is the ability to manage time tracking and invoicing in one platform. Time tracking enables you to use your volunteers’ time efficiently.
Using FreshBooks Payments, you can receive payments through credit cards, ACH, and checkout links. You can also keep track of expenses and keep your records ready for tax time.
You can streamline projects better and track profitability. Collaborate with donors and stakeholders more efficiently by automating notifications, such as payment receipts and sent invoices.
Key features
- Credits feature to track prepayments, overpayments, and credit notes
- Email and invoice templates
- Unlimited proposals
- Profitability tools for projects, including a widget, summary, and detailed reports
- Double-entry accounting reports
- Performance dashboard with easy-to-read graphs
- Unlimited time tracking
- Connects with over 14,000 banks and credit cards for easier bookkeeping
- Unlimited estimates to set clear expectations with project financiers
- Unlimited expense tracking and reporting
Pros
- A comprehensive yet affordable set of tools
- Powerful expense-tracking tools
- Wide variety of online payment options to accelerate donations
- Extensive project management tools
Cons
- Extra cost for each additional user
- The number of billable clients is restricted in the lower-tier plans
Pricing
There’s a 30-day free trial. Paid plans include:
- Lite: $7.60/month for the first 6 months then $19/month thereafter
- Plus: $13.20/month for the first 6 months then $33/month thereafter
- Premium: $24/month for the first 6 months then $60/month thereafter
- Select: Custom
Image via FreshBooks
Usability
- User-friendly tool
Tool Level
- Beginner/Intermediate
4 Tips for Choosing Accounting Software for Your Nonprofit
With so many great accounting software for nonprofit organizations, it can be challenging to pick the right solution. Consider these factors as guidelines.
1. Cost
Check the cost of the software and if there are any discounts offered for nonprofits. Pay attention to setup fees, subscription fees, and any additional charges. Ensure this is within your budget.
However, it’s important not to choose the cheapest tool blindly.
Analyze the features offered against the cost to determine if you’ll be getting good value for your money. If you need more advanced features, check how much the additional costs will be.
2. Features
Analyze your nonprofit’s unique accounting requirements, such as fund accounting, grant management, and donation tracking.
Consider the volume and complexity of your financial transactions as well. Then, assess if the nonprofit accounting software you choose can meet these needs.
3. Scalability
It’s important to choose a nonprofit accounting software that can grow with your organization.
Choose an accounting software for nonprofit organizations that can handle increasing transaction volumes and adjust to your organization’s growing needs.
Most importantly, it should accommodate this expansion without compromising on efficiency.
4. Integration
Check if the nonprofit accounting software integrates seamlessly with other systems in your tech stack, such as the payroll system, CRM, and fundraising software.
Seamless integration with your existing tech stack ensures the smooth flow of data.
FAQ
Q1. Is there free accounting software for nonprofit organizations?
Yes, MoneyMinder is one of the many accounting software for nonprofit organizations that offers a free plan.
It has limited yet essential features, including:
- Custom budgets
- Custom chart of accounts
- Budget forecasting and scenarios
- Online store management
- Membership tracking
- Running and exporting membership reports
Q2. Is there a QuickBooks version for nonprofit organizations?
Yes, QuickBooks offers one of the best accounting software for nonprofit organizations. It’s known as the QuickBooks Enterprise nonprofit software. It’s available as a desktop program, but you can also opt for cloud access.
Q3. What is the best accounting method for nonprofit organizations?
The accrual accounting method is the best approach as it ensures compliance with GAAP. However, since it’s a complex method, it’s more appropriate for large nonprofit organizations.
On the other hand, the cash accounting method is the most suitable for small nonprofit organizations due to its simplicity.
Q4. What accounting is used for nonprofit organizations?
Nonprofit organizations use fund accounting. It employs a unique approach to tracking donations and expenses. Money from various sources, such as donations, membership fees, and grants, is accounted for separately. Each source has its own set of accounts and financial statements.
Q5. What is the best accounting software for a small charity?
Some of the best nonprofit accounting software for small charities include:
- Aplos
- Fund EZ
- FastFund
Which Is the Best Accounting Software for Your Nonprofit Organization in 2024?
Now that we’ve listed 13 of the best accounting software for nonprofit organizations, you should have a good idea of which one works best for you.
However, we simply can’t decide the perfect accounting software for your nonprofit organization. Your choice will depend on your budget, unique organizational needs, and scalability requirements.
What we’d recommend is that you compare each of the listed software’s features, pros, and cons. Pick a handful of tools that you think would be good fit for your organization. Then, sign up for their free trials to make an informed decision on which one best fits the criteria you’re looking for.
