The Best Accounting Software for Nonprofit Organizations – Top 10 Reviewed for 2024

For nonprofits looking for the best nonprofit accounting software, the ideal solution will offer essential accounting tasks like invoicing and expense management with nonprofit-specific functionalities such as tracking donations and tax filing. The leading accounting software consolidates tasks like donor management tools, grant tracking, and fundraising tools, simplifying operations and facilitating online donations.

We have tried and tested the best accounting software for nonprofit organizations to give you a comprehensive list of tools tailored to nonprofits.

The Best Accounting Software for Nonprofits Reviewed

  1. FreshBooks: Best cloud-based nonprofit accounting software
  2. Zoho Accounting: Best for international nonprofits
  3. Xero: Best for taking online donations
  4. QuickBooks: Best for advanced expense tracking
  5. Wave: Best free nonprofit accounting software
  6. Melio: Best for online payments
  7. Blackbaud: Best for fundraising support
  8. Bonsai: Best for project collaboration
  9. Sage: Best for revenue tracking
  10. Oracle NetSuite: Best for large organizations

The Best Nonprofit Bookkeeping Software for 2024 Reviewed

We test software products based on price, value for money, features, ease of use, and third-party reviews. For information on how we tested the products on this list, visit our “How we test” section below.

Here are in-depth reviews of the best accounting software solutions for nonprofits so you can see exactly what you can expect from different providers and how the software can help you meet your reporting requirements and demonstrate accountability:

1. FreshBooks — Best Cloud-Based Nonprofit Accounting Software

A logo of FreshBooks

Best For Cloud-based software for nonprofit accounting
Starting Price From $8.50/month
Free Version 30-day free trial
Top Features Customizable invoices and emails, Recurring donations, Time tracking
Integrations Gmail, Google Sheets, Toggl, Mailchimp, HubSpot, Slack, Zoom, PayPal, WooCommerce
Why We Picked It

FreshBooks is a full-featured cloud-based software package, built to help nonprofits handle every financial aspect of their organization and save valuable time so you can focus on doing your remit and making an impact.

The platform offers your donors plenty of quick, convenient, and secure online payment options. You’ll also be able to create customized invoices with your organization’s colors, logo, and slogan, automatically send personalized thank you emails, and set up recurring profiles for your most generous supporters.

Features

Business Expense Tracking – An area where FreshBooks excels is in business expense tracking. It allows you to import financial statements directly from most financial institutions, automatically converts the information into detailed reports, and lets you show your stakeholders exactly what the money is used for.

Team and Volunteer Management – FreshBooks also makes it super easy to manage your team and volunteers. You can invite employees, volunteers, and even contractors to your account, assign individual tasks to your team members, and track their time.

All they have to do is click to start the timer when they begin working, and you’ll have an accurate log of hours spent on each stage of the project.

You’ll also be able to easily share information, files, and updates with everyone working on the project, which helps ensure everyone’s on the same page and is working with the latest information.

Generate Accounting Reports – Lastly, you can generate a wide array of financial reports with FreshBooks, including donations collected, expense reports, time entry details, accounts aging, and more.

Learn more in our FreshBooks review.

Pros pros

  • Simple and easy to use
  • Customizable invoices and emails for donations
  • Time tracking lets you take out the guesswork from project planning
  • Streamlined project management and information sharing
  • An array of valuable financial reports

Cons cons

  • Integrations incur a small fee

2. Zoho Accounting — Best Option for International Nonprofits, with Multi-Currency Support

Zoho Books Logo

Best For International nonprofit organizations
Starting Price From $12.75/month – ($15 – 15% discount)
Free Version Free for organizations with less than $50k in annual revenue
Top Features International payments, Separate expenses out, Project management
Integrations Stripe, PayPal, WePay, Xero, Shopify, QuickBooks, HubSpot, Monday.com
Why We Picked It

Zoho is an online accounting software solution for nonprofits that provides you with a comprehensive view of your organization’s finances and all the projects you’re running.

With Zoho Accounting, managing your organization’s funds is a breeze. You’ll be able to easily categorize all your expenses into separate expense accounts, sort funds by type and subtype, and generate expense reports with one click to easily keep track of spending.

To top it all off, Zoho offers a 15% discount on all pricing plans to registered charities, trusts, and societies.

Features

Financial Performing – You’ll be able to generate financial reports with ease, maintain financial transparency, and show donors, board members, and other stakeholders what every single dollar has been invested into.

Project Management – Zoho Accounting also excels in project tracking and management. You can create a separate card for each project, assign individual tasks, allocate budgets and associate expenses to specific projects, track time spent, and generate individual financial reports for as many projects as you’re currently engaged in.

Donor Information – The platform is a great option for nonprofits that accept donations from around the world, as it supports a wide variety of currencies and lets you offer plenty of online payment options to people who want to donate to your cause.

Learn more in our Zoho Books review.

Pros pros

  • Intuitive and easy-to-navigate user interface
  • Variety of payment options and supported currencies
  • Advanced project management functionality with built-in time tracking
  • One-click financial reports for every project
  • Free professional technical support

Cons cons

  • Can be difficult to integrate with other accounting, PM, and time-tracking tools

3. Xero — Solid Accounting Tool With Free Setup for Taking Online Donations

A logo of Xero

Best For Free donation tracking set up
Starting Price From $25/month
Free Version N/A
Top Features Expense tracking, Automatic bank reconciliation, Online payments
Integrations Stripe, HubSpot, Mailchimp, Salesforce, Gmail, Shopify
Why We Picked It

Xero is another great option for nonprofits since it’s simple and easy to use, comes with all the key accounting and reporting features you’ll need, and offers a 25% discount for registered nonprofits and charities.

While Xero isn’t specifically designed for nonprofits, you can still utilize its accounting features to track expenses and monitor the funds you receive through donors and grants.

Features

Income and Expenses – You’ll be able to track income and expenses for your organization, generate financial reports, share them with stakeholders, and use online payroll to pay all the employees in your organization. That said, you won’t be able to easily set fund restrictions or manage grant requirements, so you’ll have to do so manually.

As a nonprofit, you can also leverage the Xero bank connections features, which ensure that all expenses are automatically imported and securely stored on the platform, so you can easily keep track of all your expenses against funds.

Project Tracking – You’ll also be able to track projects in Xero, organize the work of employees and volunteers, and keep track of costs related to each program, event, or initiative.

Donor Management Tools – Most importantly, Xero also enables you to track donations and accept them via credit and debit cards. You’ll be able to add a donation button directly to your website and set up payment services for free, so it will be much easier to collect donations from your charitable patrons.

Learn more in our Xero review.

Pros pros

  • Advanced expense tracking with automatic bank feeds
  • Free setup for online payment services
  • Simplified payroll to ensure every employee in your nonprofit gets paid on time
  • Generous 25% discount for registered charities and nonprofits

Cons cons

  • No fund restrictions or grant management
  • Most features were designed with for-profit organizations in mind

4. QuickBooks — Easy-to-Use Accounting Solution With Advanced Expense Tracking 

QuickBooks Logo

Best For Advanced expense management
Starting Price From $15/month
Free Version 30-day free trial
Top Features Expense tracking, Financial reports, Vendor and donor management
Integrations Shopify, Pipedrive, Monday.com, HubSpot, Slack, Zapier, PayPal
Why We Picked It

QuickBooks is one of the most widely used accounting solutions, and it offers a simple and easy-to-use cloud-based platform to help you handle all aspects of accounting, donations, and reporting for your nonprofit organization.

With QuickBooks, you’ll know exactly what every dollar was spent on, thanks to advanced expense sorting. You can categorize expenses by program/project or by fund and generate expense reports to show board members, stakeholders, and donors how the money was utilized.

Additionally, QuickBooks helps you stay on top of your budget with donor and grant management and automatic bank reconciliations. This is invaluable since you’ll always know what funds you have at your disposal, ensuring that you can stay within budget when executing programs and hosting events.

Features

Donor Information – If you opt for the QuickBooks Enterprise version, you’ll even have the option to directly add all your donors and vendors to your account and easily manage them and share information, progress reports, and financial reports with them.

Team Management – You’ll also be able to give permission-based access to up to 40 team members to your account, ensuring that everyone is on the same page and knows exactly what they should be working on to help successfully execute programs.

Donor and Grant Management – QuickBooks also makes accepting donations and grants from all over the world a lot easier. It lets you sync your bank account with the platform and accept donations via credit card, debit card, direct bank transfer, cash, and check.

If you’re already using apps such as Fundly or DonorPerfect to keep track of your donations, you can also import transactions into QuickBooks to have all the data available to you in one place.

Learn more in our QuickBooks review.

Pros pros

  • Best accounting software for small nonprofits
  • Custom rules for expense tracking and categorization
  • One-click financial reports for every program, project, and initiative
  • Variety of payment options to make it easy to accept donations
  • The ability to add donors and vendors to your account for easier communication

Cons cons

  • Features like advanced budget tracking only available on higher tiers

5. Wave — Free Nonprofit Accounting Software With Simplified Expense Tracking

Wave Logo

Best For Free accounting software for nonprofits
Starting Price Fixed fees from 2.9% + $0.60 per credit card transaction
Free Version Free accounting and invoicing
Top Features Free accounting and expense tracking, Effortless bank reconciliation
Integrations Calendly, Shopify, Mailchimp, PayPal, Stripe, Square, Slack
Why We Picked It

Wave is the best free accounting software for nonprofit organizations, giving you complete access to all accounting features on the free account.

With Wave, you’ll be able to track all your expenses, connect your Wave account with your organization’s bank accounts with no additional fees, and scan receipts with your phone to quickly import them to the platform.

Features

Financial Performance – After connecting all your credit cards and bank accounts, payments are automatically imported into Wave. You can even set up rules for expense categorization if you need to tie them to a particular program, project, or fund.

This not only helps you stay organized but also allows you to quickly generate financial reports and share them with your stakeholders.

That said, Wave does have a pay-per-use system in place for all online transactions, ranging from 1% for direct bank transfers to 3.4% + $0.60 per Amex transaction. In other words, it’s not really a viable option for accepting donations.

Payroll Services – The payroll features and personalized bookkeeping and coaching services add up to nearly $200/month, which might be too steep for most small nonprofits.

Learn more in our Wave review.

Pros pros

  • Free accounting features for nonprofits of all sizes
  • Unlimited free bank connections
  • Mobile access and easy receipt scanning
  • Expense categorization and one-click financial reports

Cons cons

  • Payment fees for every transaction, so it’s not a viable option for accepting donations

6. Melio — Best Free Online Payments Solution for Nonprofits

melio logo

Best For Nonprofit solution to pay bills
Starting Price Fixed fees for payments, ranging from $1.50 to 2.9% of the invoice
Free Version Free signup and ACH Bank Transfers
Top Features Free ACH Bank Transfers, Handling vendor payments
Integrations Xero, Quickbooks, FreshBooks
Why We Picked It

Melio isn’t a full-fledged accounting software solution, but it does offer a key service for nonprofits — the ability to make and receive online payments with lower fees. The service is absolutely free if you’re paying your vendors using ACH Bank Transfer or receiving donations this way.

The best thing about Melio is that it offers you the much-needed flexibility to pay your vendors in the most convenient way for your nonprofit organization.

Features

Cash Flow and Payments – In addition to direct, no-fee bank transfers, you’ll also be able to pay using your business credit card, even with vendors who don’t accept credit card payments. Melio will take the money from your account and forward the payment to your vendor using the method they prefer, whether by check or bank transfer.

An added benefit of this is that your vendors will always get paid on time, but the money won’t leave your business bank account until the next billing cycle. You can also opt to split bills into multiple payments, and even utilize two or more payment methods to cover the full sum.

Melio also allows you to set up recurring payments for monthly services, so you’ll never have to worry about late fees again. You’ll also be able to delegate payment responsibilities while staying in control, thanks to customizable approval workflows for every type of transaction.

Still, the biggest drawback of Melio is that it doesn’t actually offer any accounting features, such as expense tracking and financial reporting.

Integrations – This is remedied by the fact that it seamlessly syncs with Xero and QuickBooks, as well as the fact that it’s completely free if you rely solely on ACH Bank Transfer for paying your expenses and accepting donations.

Learn more in our Melio review.

Pros pros

  • Free signup with zero fees for ACH Bank Transfers
  • Lets you split bills into multiple payments and payment methods
  • No signup fee for your vendors
  • Seamlessly syncs with accounting solutions like Xero and QuickBooks

Cons cons

  • Offers very little beyond accepting and sending online payments

7. Blackbaud — Fully Customizable Fund Accounting Solution With Built-in Support for Fundraising

blackbaud logo

Best For Customizable donation tracking and support
Starting Price Contact the company for a quote
Free Version Demo
Top Features Tracking key fundraising metrics, Maintaining FASB compliance
Integrations Paycor, Yooz, Martus, Fluent, DonorHub, DLS Financials, contactSPACE, Foundation Cloud
Why We Picked It

Blackbaud is a software solution built specifically for fundraising, nonprofit financial management, and CSR (Corporate Social Responsibility). What makes Blackbaud unusual is the fact that it was purposely built to help you streamline and improve your fundraising efforts.

The platform is fully customizable to your needs and processes and allows you to maintain and cultivate relationships with donors, keep track of key fundraising metrics, identify the strengths and weaknesses of your fundraising activities, and attend interactive online sessions with peers to share best practices.

Features

Create and Share Reports – Blackbaud dramatically facilitates tracking and reporting on transactions by net assets, ensuring FASB compliance. It also streamlines the management of unique financial report requirements, making it one of the best fund accounting software solutions for nonprofits.

Additionally, the platform makes it easy to maintain a clean account structure and lets you capture vital program, grant, and department information that’s unique to your nonprofit.

Custom Solution – The best part about Blackbaud is the company’s vast experience and the ability to adapt their platform to various organization types so you can get a fully customized solution for nonprofits, education institutions, healthcare organizations, arts and culture organizations, foundations, and charities.

Pros pros

  • Facilitates fundraising through ticketing, marketing, and nonprofit CRM management
  • Simplified fund accounting with fund restrictions
  • Easy management of unique financial report requirements
  • Fully customizable according to your needs and the type of nonprofit org

Cons cons

  • Have to contact the company for pricing

8. Bonsai — Excellent Project Collaboration Tools With Built-in Time Tracking

A logo of Bonsai

Best For Project collaboration and time tracking
Starting Price From $17/month
Free Version 7-day trial
Top Features Customizable invoices, Project management and time tracking
Integrations Gmail, Slack, ClickUp, Trello, Asana, HubSpot, Mailchimp
Why We Picked It

Bonsai offers quite a few handy features that will help you handle your organization’s finances, as well as easily manage ongoing projects and execute them, though it isn’t specifically tailored to nonprofits.

One of Bonsai’s strong suits is invoicing, and you can leverage a variety of templates, customize it with your organization’s logo and colors, and set up recurring payments, automated reminders, and thank you emails for your most generous donors.

Features

Payment Options and Track Donations  – The app lets you set up a wide variety of payment methods, including credit cards, ACH Bank Transfers, and online payment processing services like PayPal. Bonsai lets you offer more options for donors, ensures transaction security, and lets you keep track of funds from multiple sources.

That said, the option for managing fund restrictions and grant requirements is lacking, so you’ll have to manually track funds designated for a particular purpose and ensure you meet the grant requirements before applying.

Project Handling – An aspect where Bonsai truly shines is project management. It allows you to invite donors, stakeholders, vendors, volunteers, and everyone else working on a particular project or program to join the platform.

This makes it infinitely easier to manage project-related tasks, track expenses, provide project updates, and share information with everyone involved.

Time Tracking – Bonsai also features a built-in time-tracking functionality, although it’s mostly geared toward tracking billable hours and invoicing clients. As a nonprofit, you can still utilize this to track the time required to complete different stages of your projects so you can plan future ones with more accuracy and confidence.

Learn more in our Bonsai review.

Pros pros

  • Wide variety of customizable invoice templates
  • Simplified expense tracking with in-depth graphs
  • Ability to set up recurring invoices for top donors to contribute each month
  • Advanced project management tools for easy collaboration with stakeholders

Cons cons

  • Lacks fund restriction and grant requirement management
  • Can’t allocate separate budgets to different projects

9. Sage — Easy Tool to Manage Multiple Revenue Streams, Allocate Budgets, and Track Expenses

A logo of Sage

Best For Fixed asset management and budgets
Starting Price From $10/month + $12/month for AutoEntry
Free Version Three-month free trial
Top Features Expense tracking and financial reporting, Nonprofit revenue recognition
Integrations Salesforce, WooCommerce, Shopify, Monday.com, Airtable, HubSpot, Stripe, PayPal
Why We Picked It

Sage is another excellent cloud-based financial management and accounting software for nonprofits. It dramatically simplifies financial reporting for nonprofits and automates key financial processes, helping you become data-driven and leaving you with more time to focus on your mission.

If you opt for Sage, you’ll get convenient role-based dashboards where you can quickly see all the key metrics like fundraising expenses, program efficiency, administrative expenses, average donations, and more.

Features

Nonprofit Accounting Features – In addition to standard accounting features, such as expense tracking and reporting, Sage offers a variety of nonprofit-specific features that will help you streamline your organization’s financial processes. These include everything from grant tracking and billing to revenue recognition and financial reporting.

General Ledger – You’ll also have a detailed general ledger (GL) powered by artificial intelligence, so you can streamline your processes, track net income by location, and easily monitor net income and expenses across your entire organization.

Sage comes with built-in nonprofit revenue recognition, saving you valuable time, helping you stay compliant, eliminating human error, and ensuring you easily pass yearly audits.

In addition to configuring specific revenue recognition methods for every revenue stream, you’ll be able to track barriers, conditions, and progress on delivery, as well as centralize all revenue calculations in one app.

Visibility – With Sage, you’ll also have full control over fund spending since you’ll be able to easily track budgets, apply limits to all departments and locations, compare and adjust budget allocation methods, and see every single expense using real-time dashboards.

Custom Reports – Another reason to opt for Sage is that it offers custom solutions and reporting for niche-specific nonprofit organizations, such as educational nonprofits, human services organizations, faith-based organizations, foundations, nonprofit healthcare orgs, and more.

Learn more in our Sage review.

Pros pros

  • Improved financial visibility
  • Role-based dashboards
  • Effortless budgeting across different departments and locations
  • Real-time expense tracking and reporting
  • Custom solutions for niche-specific nonprofits

Cons cons

  • Lacks time-tracking
  • Interface isn’t as user-friendly as it could be

10. Oracle NetSuite — Complex Tool For Large Organizations

Best For Solving complex problems for large organizations
Starting Price Contact the company for a quote
Free Version N/A
Top Features Fund and grant accounting, Real-time reporting, Program efficiency tracking
Integrations Cube, Shopify, WooCommerce, HubSpot, Salesforce, Magento, Amazon
Why We Picked It

Oracle NetSuite is built for enterprise-level organizations, but if you’re willing to invest the time and energy to learn it, it offers everything you need to streamline every financial aspect of running a nonprofit.

With Oracle NetSuite, all your financial systems are consolidated into one platform. You’ll have access to all the features you need, such as cash management, real-time financial reporting, payables and receivables, statistical accounting, and allocation schedules.

Features

Automation – You can automate the bulk of your admin work, including purchase orders and vendor billing, saving you lots of valuable time when executing projects, ideal if you’re hosting events for targets, donors, and stakeholders.

Comprehensive Donation Options – What’s best, the platform features a comprehensive accounting framework that lets you manage diverse revenue streams for your nonprofit, including donations from various sources and grants, as well as to easily manage fund restrictions and grant requirements.

Reporting – Oracle NetSuite also automates FASB reporting, letting you configure and automatically generate compliance reports for executive leadership, board members, auditors, and your accounting team or accounting firm.

Monitoring – Another feature you’ll love is Program Efficiency Tracking, which lets you leverage scorecards to monitor functional expenses, demonstrate commitment to funding programs and services, and keep track of metrics like fundraising efficiency, program efficiency, cash flow to total debt, and contributions ratio.

Learn more in our Oracle NetSuite review.

Pros pros

  • Comprehensive finance and accounting features
  • Automated FASB reporting
  • Simplified financial segmentation for granular visibility
  • Advanced program efficiency tracking
  • Built-in constituent relationship management features

Cons cons

  • Steep learning curve – requires considerable experience

The Best Nonprofit Financial Software Compared

Here’s a quick side-by-side comparison of the best software for nonprofit accounting so you can see what the different solutions excel at, which apps they integrate with, and how big of an investment they would be, whether you’re looking for the best fund accounting software for nonprofits or financial management software for small charities:

Not For Profit Accounting Software Best For Starting Price Free Version Mobile Support Integrations
FreshBooks Customizable invoices and thank you emails, Recurring donations, Time tracking From $8.50/month 30-day free trial Gmail, Google Sheets, Toggl, Mailchimp, HubSpot, Slack, Zoom, PayPal, WooCommerce
Zoho Accounting International payments, Separate expenses out, Project management From $12.75/month – ($15 – 15% discount) Free for businesses with less than $50k in annual revenue Stripe, PayPal, WePay, Xero, Shopify, QuickBooks, HubSpot, Monday.com
Xero Expense tracking, Automatic bank reconciliation, Online payments From $25/month N/A Stripe, HubSpot, Mailchimp, Salesforce, Gmail, Shopify
QuickBooks Expense tracking, Financial reports, Vendor and donor management From $15/month 30-day free trial Shopify, Pipedrive, Monday.com, HubSpot, Slack, Zapier, PayPal
Wave Free accounting and expense tracking, Effortless bank reconciliation Fixed fees from 2.9% + $0.60 per credit card transaction Free accounting and invoicing Calendly, Shopify, Mailchimp, PayPal, Stripe, Square, Slack
Melio Free ACH Bank Transfers, Handling vendor payments Fixed fees for payments, ranging from $1.50 to 2.9% of the invoice Free signup and ACH Bank Transfers Xero, Quickbooks, FreshBooks
Blackbaud Tracking key fundraising metrics, Maintaining FASB compliance Contact the company for a quote Demo Paycor, Yooz, Martus, Fluent, DonorHub, DLS Financials, contactSPACE, Foundation Cloud
Bonsai Customizable invoices, Project management and time tracking From $17/month 7 days Gmail, Slack, ClickUp, Trello, Asana, HubSpot, Mailchimp
Sage Expense tracking and financial reporting, Nonprofit revenue recognition From $10/month + $12/month for AutoEntry Three-month free trial Salesforce, WooCommerce, Shopify, Monday.com, Airtable, HubSpot, Stripe, PayPal
Oracle NetSuite Fund and grant accounting Real-time reporting, Program efficiency tracking Contact the company for a quote N/A Cube, Shopify, WooCommerce, HubSpot, Salesforce, Magento, Amazon

What is Nonprofit Accounting Software?

Nonprofit accounting involves recording, analyzing financial performance, and communicating financial activities within organizations dedicated to a specific mission or cause. For many nonprofit organizations, accounting includes tasks such as managing grants, tracking donations, and complying with tax regulations applicable to tax-exempt entities (such as Form 990 filling).

Maintaining accurate financial records is crucial to ensure transparency, accountability, and donor trust. To achieve this, nonprofits need to use specialized accounting software designed to meet their unique requirements and provide comprehensive oversight of their finances.

For-profit vs Non-profit Accounting Software

While both for-profit and nonprofit organizations require accounting software to manage their financial activities, there are notable differences in their needs and priorities. The best for-profit accounting software typically focuses on features like profit tracking, inventory management, payroll services, and tax optimization to enhance revenue generation and profitability.

Nonprofit accounting software, however, focuses on functionalities such as donation management, grant reports, and compliance with tax-exempt regulations. It prioritizes transparency, accountability, and donor relations over maximizing profit.

As a result, accounting and bookkeeping software for nonprofits is tailored to address the unique requirements and reporting obligations of tax-exempt entities, ensuring efficient resource management and alignment with their objectives.

How We Test Accounting Software

  • Pricing – Price matters a lot when choosing accounting software, especially for nonprofits that may have lower budgets. We considered software that had free versions and offered high value for cost. 
  • Features – Our team focused on software features that would be best for nonprofits. We looked for expense tracking and invoicing features, as well as more general workflow tools. 
  • Integrations – We considered which integrations each tool offered and whether they would be useful for people in the nonprofit space. 
  • Automation – Automations can save time and make life easier, so we looked at accounting software with plenty of automations.
  • Ease of use – Our team considered how easy and intuitive each software was to use. 
  • Third-Party Reviews – We always check on third-party reviews to see what current users have to say about the software.

How to Choose the Best Nonprofit Accounting Software

When it comes to choosing the best accounting software for your nonprofit organization, there are quite a few things to pay attention to. Here’s a quick rundown of the key factors you should consider when comparing different providers:

Nonprofit-specific featuresPayment optionsIntegrationsScalabilityCost

Nonprofit-specific features — Don’t just opt for a generic accounting software. Instead, look for financial software for nonprofits that offers specific features your organization will benefit from, such as fund restrictions, grant requirements management, expense categorization, program management, and financial reporting.

Payment options — It’s always best to opt for software for nonprofit accounting that lets you pay your vendors in a variety of different ways and allows you to accept donations from all over the world. So, look for one that lets you set up multiple online payment options and supports credit and debit cards, direct bank transfers, and payments via online payment processing services.

Integrations — If you’re already using third-party apps to track your programs and initiatives, share information with your stakeholders, and manage your employees and volunteers, it’s vital that they integrate with your chosen accounting software so you have access to all the valuable data in one place.

Scalability — Pay close attention to the number of users you can add to your account on each pricing plan. As your nonprofit grows, you’ll likely need to add more users, vendors, donors, and possibly even volunteers to the platform, so it’s best to choose a solution that doesn’t enforce limits to the number of users or can be easily upscaled to a higher subscription tier.

Cost — Keep in mind that accounting software will be an additional monthly expense for your nonprofit, so carefully assess your budget. When going over the pricing plans of different accounting tools, make sure you fully understand what’s included with each package so you don’t end up paying a lot more than you expected due to add-ons and fees.

FAQs

What is the best accounting method for nonprofit organizations?

Can nonprofits get QuickBooks for free?

Is nonprofit accounting software secure?

What’s the cost of accounting software for nonprofits?

References

  1. FASB Reporting by Federal Entities (Federal Accounting Standards Advisory Board)
  2. Nonprofit Fundraising Metrics: 32 KPIs To Measure Success (DonorSearch)
  3. Nonprofit Organizations & NGOs: Financial Management (University of Michigan Kresge Library Services)
  4. What Are Restricted Funds? (Foundation Group)
Aleksandar Stevanovic
Software Reviews Expert
Aleksandar Stevanovic
Software Reviews Expert

Aleksandar Stevanovic spent 10 years honing his craft as a freelance content writer. He has a degree in Economics, and extensive experience in software, crypto, and cybersecurity industries. He covers a multitude of topics, writing factual and informative articles, helping individuals better understand the intricacies of the online world. Over the last two years, his research focus shifted more towards tech and software content, as evidenced by his publications on CEX.IO, Business2Community, and Techopedia. He believes in simplifying complex topics and bringing them closer to like-minded individuals. His work is as detail-oriented as it is creative, and is designed to…