Whether you’re a new nonprofit that’s starting to bring in your first donations, or you’ve been around the block a time or two, there’s one thing every organization needs: nonprofit accounting software.
Now, we know – many resources out there will say that “you need to buy this to be successful!” And as soon as you whip out your credit card to purchase, they’re already pushing you onto the next thing you need to buy.
But here’s the thing – as soon as you bring in your first donation, you need to document it.
And for every contribution after that, you’ll need to write it down.
Before you get in over your head, it’s a great idea to have your accounting software for nonprofits already set up and ready to go.
But, don’t feel like you have to take the first software that pops up on your screen! We’ve done some research for you, and we’re listing the top 4 software and what you need to know about them.
What is Nonprofit Accounting Software?
Nonprofit organizations are a little different than standard businesses. Nonprofits accept donations and contributions in all kinds of ways – from a check payment, to a credit card number on an online donation platform.
Not only that, but nonprofit organizations bring in funding and contributions through grants and gifts, too.
So accounting software for nonprofits caters to those unique sets of needs.
Like standard accounting software, nonprofits will still have the same necessary functions such as managing payroll, overseeing accounts receivable and payable, and tracking income and expenses.
But nonprofit accounting software will also allow organizations to track donations through an online donation platform and keep track of things like donor receipts.
What Should Be Included in Nonprofit Accounting Software?
If nonprofit accounting software is made specifically for nonprofit organizations, then what should be included?
Here’s a quick rundown of some of what you might want to be on the lookout for when buying your accounting software for nonprofits:
- Bank Reconciliation
- Budgeting
- Customizable Reports
- Donation Portal Integration
- Expense Tracking
- Form 990 Generation
- HR and Payroll Management (including check printing)
- Pledge, Donation, and Grant Tracking
- Transaction Importing
- Tax Deduction Information
Depending on your nonprofit organization, some of these may be more of a priority than others. For example, if you’re a smaller nonprofit at the moment, you may not need as many options for customizable reports.
Be sure to write down a list of what your nonprofit needs and compare those to your available options.
4 of the Best Nonprofit Accounting Software:
- Best Easy to Use Software: Intuit Quickbooks
- Best Small Nonprofit Accounting Software: Fund EZ
- Best for Customizable Options: Nonprofit Plus
- Best Free Accounting Software for Nonprofits: Wave Accounting
*PLEASE NOTE: Our list of the best accounting software for nonprofits is based on extensive research on the tools available as of 2022. We’ve read through the tools’ websites, user reports, and reviews to find helpful information.
We do not receive any compensation for these products at Nonprofit-Apps. We are solely giving you this information to help you find the best accounting software for your nonprofit organization.*
1. Best Easy to Use Nonprofit Accounting Software: Quickbooks Online for Nonprofits
Pricing: Plans start at $80 per month.
Quickbooks was made for “non-accountants” in mind. They’ve created an accounting software that’s easy to use and still includes most (if not all) of the major features you’ll need for your nonprofit bookkeeping.
This is one of the rare cases that an accounting software wasn’t made specifically for nonprofits, but still provides a lot of the necessary functions that nonprofits need!
And the usability of it is just … *chef’s kiss!*
Top Features of This Software:
Some of the top features of Quickbooks Online for nonprofits include:
- Bill payment
- Budget breakdown by program or funding source
- Expense and income tracking
- Inventory tracking
- Receipt capturing and organization (great for your donor receipts!)
- Tax deduction assistance
- Easy to learn and use
- Integration with many of the best CRM software for nonprofits, like Kindful and NeonCRM.
Drawbacks of This Software:
- It’s on the pricier side, especially when compared to other accounting software for nonprofits
- It doesn’t have as many features catered specifically to nonprofits as other software
This Nonprofit Accounting Software is Best For:
Quickbooks Online for nonprofits is a great accounting software for nonprofits if you consider yourself a “non-professional accountant.” It’s an easy tool to use and understand, which is great if you need something more simple.
But if you know you need the more in-depth, nonprofit-specific accounting features, this may not be the software for you.
2. Best Small Nonprofit Accounting Software: Fund EZ
Pricing: Get in touch with a representative for pricing plans!
Fund EZ has been serving as a small nonprofit accounting software for 30 years! From day one, they established themselves as accounting software specifically designed for nonprofits.
And they haven’t budged on that since!
They pride themselves on their ease of use (it’s built right into the name!). So no matter your experience with accounting software, you’ll pick this right up.
And they offer unlimited telephone support. So you’ll be able to implement this into your small nonprofit quickly.
Top Features of This Software:
Some of the best features of Fund EZ include:
- Fund accounting with encumbrance accounting functions
- Simple to use and easy to set up
- Bank reconciliation
- Accounts payable and receivable
- Direct and indirect allocations
Drawbacks of This Software:
While most customers love this software, some have said they would like to see the reporting module more refined and improved. And many have mentioned they’d love a cloud version of this small nonprofit accounting software.
This Software is Best For:
This tool includes many features, but we think it’s best as a small nonprofit accounting software. That’s because, at a certain point, the customizations are limited. You may run into needs that this software doesn’t have a solution for.
3. Best Nonprofit Accounting Software for Customizable Options: Nonprofit Plus
Pricing: Get in touch with a representative for a quote on pricing plans for Nonprofit Plus.
Nonprofit Plus’s accounting software is an excellent choice if your nonprofit organization needs to pull customized reports. Whether it’s breaking down budgets by program or donors, this software can do it all.
It’s also a fantastic option if you’re looking for something you can grow into. While you may not need every feature right away, they’re there for you when you reach that point.
Top Features of This Software:
Some of the top features of Nonprofit Plus include:
- Board management
- Delegation and time tracking
- Donor management
- Fund-based and encumbrance accounting to help with budget tracking
- Inventory management (great if you stock merchandise like mugs, clothing, etc.)
- Multi-currency support to help with funds from all over the world
- Multiple user support
Drawbacks of This Software:
The biggest drawback to this software seems to be the pricing for it. While you have to get in touch with customer support for pricing, many customers have said they’ve paid more than $600 per month for full access to the entire accounting suite of features.
This Nonprofit Accounting Software is Best For:
This nonprofit accounting software is excellent for larger nonprofit organizations that need to pull customized reports.
It’s a great nonprofit software to use if you plan on scaling your organization and need something you can grow into.
4. Best Free Accounting Software for Nonprofits: Wave Accounting
Pricing: Wave Accounting is a free accounting software for nonprofits for life!
If you’re watching your budget for your nonprofit organization, then might we suggest a free accounting software for nonprofits?
Introducing Wave Accounting!
A super simple-to-use bookkeeping software for nonprofits, this is a solution that you can learn how to use quickly, with no accounting experience required.
Top Features of This Software:
Some of the best features of Wave Accounting for nonprofits include:
- Entirely free accounting software
- Unlimited users
- Expense and income tracking
- Basic reporting
- Billing, invoicing, and receipt capturing
- Bill payment
- Dashboard to keep track of updates in your budgets
Drawbacks of This Software:
The biggest drawback customers have is the fact that there’s only one plan available. While it is free, many have mentioned it’s possible to outgrow this free accounting software for nonprofits.
This Nonprofit Accounting Software is Best For:
This free accounting software for nonprofits is best for small to midsize organizations that need a basic bookkeeping tool to keep their budget on track.
Overall, choosing the best nonprofit accounting software depends on your budget and what you need for your organization. But it’s so important to find one so you can start managing and tracking what’s coming in and what’s going out of your nonprofit!
No matter what you need, one of these top 4 accounting software for nonprofits will do the trick!
Want more related to this? Check out these posts!
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