On the other hand, the cash accounting method is the most suitable for small nonprofit organizations due to its simplicity. Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules. NerdWallet compared more than a dozen accounting software products, and Aplos is our top choice for most nonprofits. Finding the right software for your nonprofit helps determine its success, so make sure to snag those free trials and test-drive different options. With the right bookkeeping software on your side, you’ll be able to make the most of your donations and reach people who support your cause.
MoneyMinder’s intuitive dashboards and accounting tools allow best accounting software for nonprofits users to create budgets, track costs, reconcile bank accounts, and record receivables. It integrates with your organization’s bank account as well as PayPal (available in the paid version). One standout feature is the ability to track volunteer hours, as well as donations, although other donor management tools are limited. GnuCash is a free, open-source accounting software supporting personal and small business accounting. While it’s not specifically designed for nonprofits, it has the flexibility to be used by organizations that need powerful accounting tools. GnuCash’s robust features make it ideal for nonprofits with a deeper understanding of accounting and needing more detailed control over their finances.
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Some donations received are designated for specific use and, therefore, need to follow specific guidelines for managing and recording the funds. It ensures accountability and increases the credibility and confidence that church members have in your financial transactions. MoneyMinder is one of the pioneers in the field of nonprofit association fund management software. Available in a completely free version, this solution also has an accounting module. Almost every software solution on this list offers a free trial or demo tour.
- Before choosing an accounting platform, check if it connects smoothly with your payroll system, donor management software, fundraising tools, and grant tracking systems.
- You just review the transactions to ensure they are properly categorized and fill out any required fields.
- Unlike many one-size-fits-all platforms, Knack enables organizations to design solutions that fit their operations precisely.
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- In addition to the functionality described above, you’ll need extra features.
- 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.
- MoneyMinder’s strengths lie in its user-friendly interface, member tracking capabilities, and integrated online payment options.
- Here are some key trends to watch closely that could impact your organization.
Salesforce is a customizable platform that includes robust features to help companies organize and manage their clients. Although not initially built for nonprofits, you can still use its varied features to manage donor relationships and analyze your fundraising performance. Marketed as an ‘all-in-one’ CRM for small to midsize nonprofits, Neon One CRM focuses on the basics of constituent management.
With everything consolidated, you can track inter-entity transactions to improve reporting. 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.
Reviewing the Top Free Nonprofit Accounting Software
It also includes multi-channel selling and integration with TikTok and Facebook to boost brand visibility. The platform integrates with suppliers to automatically print and ship orders once they are placed. Additionally, it has low transaction fees and reporting and analytics tools for tracking sales and optimizing fundraising efforts. Weebly has a range of pre-built templates, supports various payment gateways, and includes features like email marketing, SEO tools, and social media integration. Even though the CRMs have a lot of features, they can’t do everything for every organization.
Zoho Books excels in tracking restricted funds, managing grants and donations, and generating customizable financial reports. It also simplifies project management and allows for multi-currency donations, making it as versatile as a Swiss Army knife for nonprofit finances. However, larger organizations with complex financial structures might find its features somewhat limiting compared to more robust enterprise solutions.
Products
The ability to support multiple users — and even various companies — also allows teams to collaborate more effectively, even in larger organizations. Choosing the right nonprofit accounting software means knowing what you’re paying for! Pricing can vary depending on features, team size, and any extras like add-ons. To make things simple, check out the table below—it breaks down common plans, average costs, and the key features you can expect from different nonprofit accounting software options.
As a result, it’s worth regularly reviewing and updating financial policies to ensure they align with current expectations. Given the evolving nature of these regulations, however, it’s can be challenging to stay current, especially if you don’t have a financial expert on the payroll. If your stakeholders are confident that money is well-spent and can trace revenue from source to spend, they’re more willing to invest time, effort, and money in your mission. If, however, your nonprofit fails to report its finances as required by GAAP and FASB, it could lose tax-exempt status.
Blackbaud Financial Edge NXT is adept at grant and fund-specific budgeting capabilities. The platform aids grant management by offering detailed tracking and reporting capabilities, allowing nonprofits to monitor spending, compliance, and performance against specific grant requirements. We like that users can create a separate financial record for each restricted fund, enabling transparent usage tracking and reporting.
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. However, Sage Intacct is definitely on the pricy end of the nonprofit software spectrum. Sage Intacct also offers free seminars to help nonprofit organizers get off the ground, which is particularly useful for nonprofits struggling to make ends meet after COVID-19.
In addition, they can track expenses and capture receipts to simplify tax filing and report to donors the non-profits’ overhead-versus-project costs. Xero’s highly customisable and in-depth reporting tools make Xero stand out. Money from various sources, such as donations, membership fees, and grants, is accounted for separately. Before choosing an accounting platform, check if it connects smoothly with your payroll system, donor management software, fundraising tools, and grant tracking systems.
This nonprofit accounting software system is one of the top choices because it also integrates with other essential tools, like payroll software, making it a comprehensive solution. Your organization may also be growing and adding on paid staff members (rather than being fully volunteer-run), meaning payroll and time tracking are features you can no longer ignore. Both fund accounting and payroll are functionalities that can be bought as stand-alone or add-on software features to existing accounting packages.
It’s the perfect fit for small, volunteer-led orgs that need straightforward nonprofit bookkeeping services and reporting without the accounting degree. MonkeyPod provides unlimited transaction records and documents, ensuring everything from receipts to grant expenses is securely organized and easily accessible. They also offer unlimited users, so your accountant, bookkeeper, or auditor can be added right to the platform and see your books in real time. And if you’re not an expert in nonprofit accounting, don’t sweat it, MonkeyPod’s bookkeeping team can help you stay on top of your accounting. This is essential for expense tracking income and expenses tied to specific funds. It ensures you can allocate and report on restricted funds, like grants, accurately.
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It’s designed to simplify fund accounting, making it easy to track donations, grants, and expenses while maintaining transparency. We also like Aplos’ ability to manage various funds, each with specific restrictions and reporting requirements. Its true fund accounting allows these organizations to accurately track and report on each fund separately, ensuring compliance and maintaining donor trust.
This method of accounting helps nonprofits maintain full transparency for their donors in accordance with federal law. DonorPerfect is a solid CRM for nonprofits because of its donor management and fundraising features. Their lowest pricing tier is also quite affordable, which makes it good for smaller nonprofits. It includes some customization options, making it useful for a range of nonprofit organizations, although its functionality is less extensive than the slightly more expensive options. When using general accounting software, support teams might not understand the specific challenges that nonprofits face. A good nonprofit accounting software provides resources, training and support tailored to the unique needs of mission-driven organizations.
However, many treasurers have found QuickBooks difficult to navigate without an accounting background. If a nonprofit frequently has to reimburse members, volunteers, parents or others, you’ll want to look for software that can help make that easier. Not only do many nonprofits operate on a fiscal year that differs from the calendar year-such as July 1 to June 30-they typically operate with distinct financial years. Each fiscal year is closed out separately to comply with year-end reporting requirements, grant and fund restrictions, budgeting and audit readiness. Sign up for a free trial today and discover how Knack can help you build custom solutions that drive your mission forward. When you leave a comment on this article, please note that if approved, it will be publicly available and visible at the bottom of the article on this blog.