Last editedNov 20212 min read
Nonprofits don’t generate revenue in the same way that a profit-focused business does. However, they still require accounting software for tracking donations, keeping financial records, and generating reports. Here’s our roundup of the best accounting software for nonprofits on the market today.
One of the best financial software for nonprofits is Xero. This cloud-based system offers hundreds of integrations including GoCardless along with other payment apps like PayPal, Stripe, Membership Works and Infoodle. This makes it scalable to suit an organization’s needs, whether it’s managing member lists, accepting donations, or planning events. On its own merits, Xero can handle financial reports, expense tracking, issuing invoices, and other typical accounting functions. There are three subscription levels to choose from, along with a simple user interface and robust security features. To further sweeten the deal, registered nonprofits receive a discount off the monthly fee.
Another top contender for best accounting system for nonprofits is QuickBooks. Whether you choose QuickBooks Online or the more specific QuickBooks Enterprise Nonprofit, this well-known accounting software makes short work of end-of-year reporting. It provides an all-in-one package to handle donor management, payroll, financial statements, and invoices. That means you’ll be able to track finances and pay staff without additional integrations. Of course, you can add those as well for even greater functionality as QuickBooks easily syncs with hundreds of third-party apps. The fees will vary depending on the version of QuickBooks and plan you choose. Smaller start-ups can probably get by with the basic level of QuickBooks Online, while larger organizations will want to go for one of the higher-level QuickBooks Enterprise plans.
Like QuickBooks Enterprise, Araize FastFund is designed to provide an all-in-one nonprofit accounting solution. You can pick and choose from fundraising, accounting, and payroll services or opt for a bundled package that includes all three main functionalities. It’s popular not only with small-scale community groups but also larger government organizations due to its scalability. Key features include website and SMS donations, credit card and ACH donation processing, and revenue management. There are also several plans to choose from depending on organization size, each at different price points. One thing to note is that if you require one-on-one training, this costs extra. However, video training and scheduled webinars are free of charge.
Before nonprofits can generate financial reports, they need to find a way to track donations accurately and measure cash flow. Sumac is tailor-made for donor management, making it one of the best accounting software for nonprofits as it is heavily focused on fundraising. Key features include free training sessions, customizable donor profiles, and email marketing capabilities. However, while other software on this list is useful for general accounting, Sumac is solely focused on donations.
Our fifth and final pick for the best financial software for nonprofits is Zoho Books. It’s a good all-rounder for general accounting services, from invoicing to report generation and expense tracking. You can add on Donor Management and a Volunteer Portal from the Zoho Marketplace to bring it up to speed for fundraising and volunteer management. The add-ons are free, allowing you to oversee volunteer tasks and tackle event planning with no extra charge. It’s an exceptionally affordable option, making Zoho a good choice for start-ups and smaller organizations.
What is the best accounting software for nonprofits?
There are a few features that the best accounting software for nonprofits have in common. They’ll help you stay organized with fundraising and outreach to both donors and volunteers. They’ll also offer a variety of price plans to suit different sizes of organizations.
To find the best fit, you should think about the size and type of nonprofit you run, the problems you need a solution for, and the budget you’re working with. It ’s also helpful to make a list of must-have features to have in hand when comparing your options. For donor management alone, an option like Sumac will be best. Those who need more comprehensive services might opt for accounting software for nonprofits like Xero in conjunction with the payment processing capabilities of GoCardless.
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