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Best Accounting Software for Nonprofits (2020)

Susan Honea

Susan Honea – 8 years experience helping businesses with bookkeeping, tax preparation and auditing

Last updated: May 21, 2020

Picking the right accounting software can help take the stress out of bookkeeping and accounting. We round up 10 of the best for nonprofits.

Best Accounting Software for Nonprofits (2020)

Nonprofits need to take care of the books, just like any organization that handles money and reports income and expenses to the IRS. However, accounting for nonprofits can be very different from for-profit accounting. Nonprofits can vary widely in their accounting software needs, but most will have some basic requirements:
Financial statements/nonprofit reports (statement of financial position, restricted vs. unrestricted assets, statement of activities, cash flow statement)
Tracking revenue, such as donations, dues, fundraising, grants, investments, and so on (fund accounting)
Bank account reconciliation
Member and donor management and communication
Tracking expenses, both in general and against specific budgets, projects, or grants
Budgeting, including preventing overspending against grants and restricted funds

To get started on your hunt for the best accounting software, take a moment to consider your needs:

  • What type of nonprofit do you run? Some nonprofits, such as 501(c)(1) don’t file tax returns, while a 501(c)(3) or 501(c)(4) will file an annual return; different rules apply to different types of nonprofits. It’s important to choose software that can help you meet these requirements.
  • How big is your nonprofit? This could be important, for example, if your nonprofit is large and requires vigorous fund accounting capabilities. A smaller nonprofit, such as a Parent Teacher Association/Organization, won’t necessarily need comprehensive accounting functionality.
  • What problems are you trying to solve? For example, are you trying to keep up with changing guidelines or compliance? Do you need better communication with grantors? Knowing the specific issues that are problematic for you can help you make the best choice in software.
  • How big is your budget? Software options can range from simple and relatively inexpensive to more robust and quite pricey. Consider how much (or how little!) you are willing to pay.

Think about the ongoing accounting problems you are facing in your nonprofit or list the specific features you need in accounting software now, along with the ones you may need down the road. The main benefits of accounting software for nonprofits are financial accuracy, compliance with financial reporting rules and grants requirements, and freeing up time to focus on the mission you have committed yourself to!

Read on to learn more about the accounting software products that are best for nonprofits.

Here’s our list of the best accounting software for nonprofits:

1. Aplos: Best overall accounting software for nonprofits. Designed specifically for nonprofits and churches, Aplos offers flexible accounting software with features important to nonprofits, such as fund accounting, membership management, donation management, and fundraising capabilities.

2. Blackbaud Financial Edge NXT: Most flexible accounting software for nonprofits. Blackbaud might elicit more interest among larger nonprofits and charities seeking accounting software, but it offers flexibility in financial reporting and analysis, strong user-level permissions tools and customization, automated processes, and it’s scalable.

3. Sage Intacct: Most scalable accounting software for nonprofits. Sage Intacct offers a lot of functionality, which might be overkill for the smaller nonprofits in the market for accounting software. Sage Intacct offers scalability, along with the standard features nonprofits need: reporting, fund accounting, help with auditing, Form 990 and 1099 support, and so on.

4. QuickBooks Online: Best accounting software for small nonprofits. Although QuickBooks Online accounting software wasn’t initially designed for nonprofits, it can be set up for nonprofit accounting. Smaller nonprofits are most likely to consider QuickBooks Online as it can be an inexpensive option that covers the basics: program and fund accounting, donation management, and some grant tracking, among other features.

5. NonProfit+: Best integrated donor management and accounting software for nonprofits. Nonprofit+ is another accounting software option designed specifically for nonprofits of all sizes. Offering the most important features to address nonprofit accounting needs—fund accounting, donor and asset management, revenue functions, budget management, grants, reports, time tracking, and user-based permissions—it is also scalable.

6. Fund E-Z: Small and medium nonprofits should look into Fund E-Z’s fund accounting, fundraising, and customization capabilities. Users looking for simple accounting software for a one-time fee will appreciate that feature of Fund E-Z.

7. ZohoBooks: Like QuickBooks, ZohoBooks is one of those accounting software options that turns up on most lists, from best in general to best for small business accounting and now for nonprofit accounting. Because it is such a versatile offering with many features, it may be too much software for a smaller nonprofit. Zoho Creator, an add-on, can bring helpful apps to the table specifically for nonprofits, such as a portal for volunteers, events and donor management, and the ability to create custom apps.

8. QuickBooks Premier Nonprofit: For small to medium nonprofits that don’t need a cloud-based accounting software, QuickBooks Premier Nonprofit accounting software is a good option for tracking pledges and donations, even by mobile phone. Charts of accounts, bank sync, and reporting are all strengths of QuickBooks Premier Nonprofit, but fund accounting is not as the software doesn’t do true fund accounting.

9. Sparkrock: Medium to large nonprofits will get more out of Sparkrock’s accounting software. Smaller nonprofits probably won’t benefit from all the features of Sparkrock, which can handle anything from finance and accounting to employee scheduling. It is specifically designed for fund accounting. Organizations needing to manage dues, events, or membership might want to look elsewhere for accounting software.

10. Xero: Like ZohoBooks and QuickBooks, Xero is a perennial contender, turning up on a variety of lists of best accounting software. In the case of nonprofits, the smaller entities might find Xero an agreeable option, with the caveat that Xero isn’t designed specifically for nonprofit accounting needs. It offers good financial accounting capabilities, and it can integrate with many third party apps helpful to nonprofits.

These snapshots provide you with a quick glance at the best accounting software for nonprofits, but you can read on for more detailed information about each software option, including the following:

  • Best for: Which nonprofit entities typically use or might find each accounting software option useful?
  • Features important for nonprofits: What’s in it for your nonprofit?
  • Ease of use: How long will it take users to master the accounting software? Does it have the functionality your nonprofit needs? What can you expect in terms of support?
  • Cost: Does use of the accounting software incur a monthly fee or annual fee? What features incur additional fees?
  • Pros and cons: What are the best and the not-so-great features?

Best accounting software for Nonprofits

1.Aplos

Website www.aplos.com
Price from $29.50/mo
Free Trial 15 Days

Best overall accounting software for nonprofits.

Best for:
Aplos targets nonprofits of all sizes and specifically churches.

Features important for nonprofits:

  • Financial statements geared toward the special needs of a nonprofit
  • Fund accounting for grants and special programs
  • Customizable chart of accounts
  • Donor management and retention
  • Credit card and ACH processing
  • Fundraising tools and reports
  • Contact management and member management with a directory
  • Marketing and communication platform

Aplos makes accepting and managing donations easy with a donation widget, a Smart Donor database, recurring donation options, and donor-specific preferences. In addition, Aplos accepts online donations, and its customizable mobile-friendly donation forms require no programming. It even offers a text-to-give feature. Some users might find the website development feature appealing, along with the online events sign-ups and communication portal.

Ease of use:
Aplos considers its software intuitive and easy to use but offers support at all levels and provides a Support Center. Users report that it’s easy and intuitive enough for volunteers to use without any accounting experience. Another feature is a nicely developed “Academy” section on their website with helpful tips for understanding concepts important to nonprofits and churches. Aplos is flexible in that it can be as simple as needed or more complex with use of advanced features.

Cost:
Aplos is neither the least nor the most expensive option. It’s possible to catch a sale on the monthly pricing or earn a discount for annual purchase. Aplos offers a 15-day free trial and a demo for the advanced option.

For nonprofits or churches who need to add payroll, that add-on feature brings additional fees. Aplos also provides fee-based bookkeeping and implementation services, and new nonprofits or those with limited accounting experience may benefit from these add-ons.

Things we liked:

  • True fund accounting
  • Customer support and help features
  • User-friendly
  • Excellent reporting features
  • Strong assortment of advanced features

Things we didn’t like:

  • Feature set may be too rich
  • Can be expensive for smaller nonprofits
  • Limited customization of communication templates

2. Blackbaud Financial Edge NXT

Most flexible accounting software for nonprofits.

Best for:
Blackbaud Financial Edge NXT’s target market is nonprofits (including churches and foundations), charities, and government entities with one million dollars or more in revenue, so mid-sized or larger entities would find Blackbaud Financial Edge NXT a good fit.

Features important for nonprofits:

  • Flexible financial reporting and analysis
  • Project, grant, and endowment administration tools
  • Multi-year budgeting and budget lock features (once locked, no
  • changes)
  • Report consolidation features
  • Program monitoring and evaluation
  • Fundraising, with payment services, and strong donor and donation
  • Tracking features
  • FASB-compliant records and fraud, misappropriation, and overspending prevention controls
  • Strong audit trail functionality

Blackbaud Financial Edge NXT also features important flexibility. For example, user-level permissions provide for the restriction of content, allowing users or user groups to see only the information applicable to them. Charts of accounts and the dashboard view are customizable. Blackbaud is scalable with APIs, a developer portal, and a partner network.

Ease of use:
Blackbaud Financial Edge NXT was designed for finance and accounting professionals within the nonprofit space, but it does offer support, along with a knowledge base, a video library, and “Blackbaud University,” offering training and certification for a fee. Blackbaud includes automated workflows and approvals processes, along with other time-saving automations.

Cost:
Blackbaud Financial Edge NXT doesn’t publish exact costs, but there are three packages to choose from: Starter, Essentials, and Pro. Customer reviews suggest that it’s a rather expensive option, and the company raises pricing regularly once you’ve started using it. Several customer reviews indicate the cost is worth it for the functionality, however.

ERP and fundraising functionality will require an add-on: Blackbaud Raiser’s Edge NXT.

Things we liked:

  • Handles allocations and shared costs easily
  • Multi-year budgeting feature
  • Customizable dashboard
  • Good training and customer service

Things we didn’t like:

  • Software bogs down (speed issues)
  • Report customization may be challenging
  • No daily time tracking in payroll module
  • Integrations are weak

3. Sage Intacct

Most scalable accounting software for nonprofits.

Best for:
Educational nonprofits, churches and faith-based organizations, healthcare operations, international/NGO, membership-driven entities, and philanthropic outfits would all want to take a look at Sage Intacct. Medium and large nonprofits will benefit most from all Intacct has to offer. This software might offer too much functionality for a smaller nonprofit, though.

Features important for nonprofits:

  • Standard nonprofit reports
  • Fund accounting
  • Facilitates auditing process
  • Form 990 support
  • 1099 support
  • Integrations, including APIs for external interfaces, CRM (several), and donor registration packages (e.g., EveryAction)
  • Fixed asset management and asset depreciation tracking
  • Inventory management and automated purchase order system

Sage Intacct provides strong internal controls, including dimensions (e.g., grants, donors, programs, geographical locations, etc.), allowing users to see data in different ways, along with time-saving automation features and workflows, such as reports that run at specific time intervals. Dashboards are set up based on user permissions and dimensions, which helps non-accounting personnel review data in a way that makes sense to them. Larger nonprofits and those with multiple locations will benefit from multi-entity and multi-currency functionality.

Ease of use:
Sage Intacct is not the most intuitive option out there and can be difficult to learn for non-accounting professionals, but good training options (webinars and onsite) and an annual conference can help fill in the gaps.

Cost:
Sage Intacct is subscription based, but potential users need to request pricing. Add-on modules for budgeting, interactive billing, grants tracking and billing, revenue recognition, and GuideStart add to the cost, so Sage Intacct can become expensive for the nonprofit.

Things we liked:

  • Robust reporting system
  • Easily scalable across multiple entities
  • Time tracking and other HR functions

Things we didn’t like:

  • Expensive for smaller nonprofits
  • No mobile app
  • Complete transactions are difficult to modify
  • Bank reconciliation isn’t user friendly

4. QuickBooks Online

Price from $8.00/mo
Free Trial 30 Days

Best accounting software for small nonprofits.

Best for:
Micro to small/medium nonprofits, such as parent-teacher associations, churches, etc., are ideal candidates for QuickBooks Online. It’s not designed for organizations that require complex fund accounting, and it’s not specifically designed for nonprofits. However, the business structure can be set to nonprofit during the setup process, and that automatically changes how data are handled and reported on in QuickBooks Online. In other words, choosing nonprofit setup and Form 990 as the tax return causes standard nonprofit reporting and a basic nonprofit chart of accounts to be available. Customers become donors, and income and expenses become revenue and expenditures.

Features important for nonprofits:

  • Program and fund accounting functionality using categories (Plus subscription and higher)
  • Donation and program/grant tracking (limited functionality)
  • Customizable chart of accounts
  • Recurring invoices, payments, and journal entries
  • Allows for donor pledges (as A/R) and automatic invoicing
  • Flexible, robust reports
  • Seamless Stripe and PayPal integrations
  • User-level permissions (Advanced subscription)

The big draw for QuickBooks Online is that it integrates easily with fundraising and member/donor management platforms, including Neon, Sumac, Funraise, Kindful, Tithe.ly, Denari, and Breeze.

Ease of use:
QuickBooks Online can be challenging to set up for a nonprofit, but once it’s set up correctly, it can be easily used by a volunteer or employee with no accounting experience. In addition, QuickBooks Online offers good customer support and an active User Community, along with paid access to QuickBooks Live Bookkeeping (a new feature).

QuickBooks Online also provides time-saving automations, including digital receipting, and limited manual entry of bank and donor payment feeds. It learns by transaction type to automatically assign deposit accounts, expense categories, and expense withdrawal accounts. Excellent mobile apps make using QuickBooks Online on the go easy.

Cost:
QuickBooks offers tiers of plans that increase in price with features and number of users. The basic tier does not offer budgeting functionality. Intuit does not provide specific discounts for nonprofits, but TechSoup routinely offers freebies and lower cost options for nonprofits. The nonprofit just has to prove that the organization is, in fact, nonprofit. There is a 30-day free trial available, providing the opportunity to test drive the product.

Things we liked:

  • Flexibility
  • Cost-effective for smaller nonprofits
  • Nonprofit-specific integrations

Things we didn’t like:

  • No native fund accounting
  • Single entity only
  • Chart of accounts can become unwieldy

5. NonProfit+

Best integrated donor management and accounting software for nonprofits.

Best for:
Nonprofit+ can serve nonprofits of all sizes—hospitals, museums, government agencies, foundations, churches, housing associations, and food banks, to name a few. Built on the Acumatica ERP framework, it is designed specifically for the nonprofit sector and is scalable to grow with you.

Features important for nonprofits:

  • Fund accounting features, including donor and asset management
  • Restricted revenue release and revenue recognition functions
  • Strong budget management and encumbrance accounting features
  • Grants compliance, contract management, and grants award tracking capability
  • Tracks volunteers and their time
  • Customizable reports
  • Integrated data modules and industry-specific suites
  • User-based permissions allow board members to have real-time access to data

Ease of use:
Nonprofit+ is challenging to set up, but customer support seems to be very good, and users can be oriented effectively during the required implementation. As with most modern accounting software, Nonprofit+ offers a convenient mobile app.

Cost:
Like many of its competitors, Nonprofit+ requires users to request pricing for its subscriptions. Some sources indicate it’s a pricey option (typically several hundred dollars per month). In addition, Nonprofit+ requires new organizations to pay a substantial fixed fee for implementation.

Things we liked:

  • Designed specifically for nonprofit organizations
  • Strong grants management functionality
  • Modular/suite based approach

Things we didn’t like:

  • Difficult to set up
  • Getting all required features may be expensive
  • No built-in payroll

6. Fund E-Z

Website www.fundez.com
Free Trial 30 Days

Best for:
Small nonprofits might be the best match for Fund E-Z, but any medium-sized or smaller nonprofit could benefit from it.

Features important for nonprofits:

  • Easy to get started with basic nonprofit functions
  • Comprehensive solution for fund accounting
  • Integrated fundraising
  • Manages multiple funding sources
  • Standard and fully customizable charts of accounts
  • Unlimited, customizable dashboard views
  • Multi-currency
  • Easy to post direct and indirect allocations

Ease of use:
Fund E-Z has been in the nonprofit game for more than two decades, which speaks to its basic usability. Fund E-Z allows the user to set up multiple budgets at various levels (program, project, grant, fund, department, etc.) and to account for encumbrances, but the user must know exact date ranges to get reports to run properly, and budgets can also be challenging for new users to set up.

The advanced reporting module allows for customization, but report customization is difficult and time-consuming, and standard reports don’t always include the necessary data in a usable way. Similarly, user-level and group-level permissions exist, but they can also be tricky to set up correctly.

The good news is that Fund E-Z does provide good customer support to help with the more challenging tasks.

Cost:
All Fund E-Z modules are one price, so there are no surprises lurking here. It’s available for a one-time fee, which may seem prohibitive at first, but it’s important to remember the software can be used for years. Fund E-Z does offer a free trial. The Pro version costs more but expands capabilities.

Things we liked:

  • Multi-budget capabilities
  • Customizable dashboards
  • Regular upgrades and enhancements

Things we didn’t like:

  • Fixed asset module doesn’t track accumulated depreciation well
  • Cloud only with no mobile apps
  • Users may find some functions difficult to use at first

7. ZohoBooks

Website www.zoho.com
Price from $9.00/mo

Best for:
Small to medium nonprofits, schools, trusts, and government agencies—especially those using other products in the Zoho ecosystem—are potential ZohoBooks users. Not created specifically for nonprofits, ZohoBooks may offer too much functionality for the small nonprofit.

Features important for nonprofits:

  • Dashboard view includes snapshots of cash flow, expenses, and projects
  • Fund management capabilities
  • Donor receipting workflow
  • Comprehensive reporting capabilities
  • Manage people and expenses at the project level
  • An add-on tool, Zoho Creator, includes a variety of nonprofit focused apps, including a volunteer portal, events management, donor management, and the ability to create custom apps
  • Multi-currency, allowing the nonprofit to accept donations from anywhere
  • User-level permissions facilitate collaboration, even on individual projects

Ease of use:
ZohoBooks is easy to set up and requires no accounting experience although some users do find the interface clunky. Customer support seems to be lacking. ZohoBooks does offer fund management, but it doesn’t offer full fund accounting methods. And, while it does have a mobile app, the app doesn’t have the ability to snap or scan a receipt directly to an expense.

Cost:
ZohoBooks offers a free trial and a discount for all registered charities, trusts, and societies. There are three reasonably priced monthly plans to choose from, but adding users drives up pricing. Creator costs more each month, but Zoho has been known to cut nonprofits a deal.

Things we liked:

  • APIs allow for custom integrations
  • Cost-effective
  • Simple, easy to use reporting tools

Things we didn’t like:

  • Bank sync can only be run once per 24 hours period and frequently “breaks”
  • Software updates are too frequent
  • No multi-client/entity option
    Difficult to undo things that aren’t done correctly

8. QuickBooks Premier Nonprofit

Price from $8.00/mo
Free Trial 30 Days

Best for:
QuickBooks Premier Nonprofit is best for small to medium nonprofits that need robust features for a reasonable price in a desktop software product.

Features important for nonprofits:

  • Fully customizable chart of accounts, or the option to use standard nonprofit chart of accounts
  • Bank sync works seamlessly and saves a lot of time
  • Heavily customizable reports and a strong assortment of nonprofit specific reports
  • Multi-company/entity functionality
  • Uses nonprofit terminology in the software (other packages that weren’t built for nonprofits don’t do that)
  • Includes donor communication tools
  • 1-5 users on Premier (upgrade to Enterprise for more)
  • Desktop version

Ease of use:
The setup for QuickBooks Premier Nonprofit isn’t the easiest, but once it’s done and the user knows where everything is located, it’s very easy to use. QuickBooks is very flexible, and provides several ways to do tasks, which can be good or bad at first, depending on user preferences and experience. The number of features can be overwhelming, but QuickBooks Premier Nonprofit provides a helpful dashboard view for most common tasks.

QuickBooks Premier Nonprofit doesn’t really do true fund accounting; the user must set up classes to track funds correctly. Unfortunately, the user can’t lock periods without closing books, which can only be done at the end of fiscal year. QuickBooks Premier Nonprofit can bog down at times and be slow to start or respond, but that’s typical of a big desktop database package.

The huge user community is a big bonus for QuickBooks users, who can benefit from the experience of others. Intuit also listens to customer feedback and updates and provides upgrades regularly to improve the user experience.

Cost:
You can buy a license for QuickBooks Premier with three years of support or buy Premiere Plus for an annual fee, neither of which is terribly expensive.

Things we liked:

  • Strong, easy-to-use search functionality
  • Switching between entities is a breeze
  • Simple reconciliation process

Things we didn’t like:

  • Fund accounting setup is time consuming
  • More expensive than regular QuickBooks desktop
  • Accountant must have QuickBooks Nonprofit installed

9. Sparkrock

Best for:
Sparkrock is best for medium to large nonprofits, K-12 school boards, human services, and government agencies. The feature set is probably too rich for a small nonprofit, and it’s not a good choice for member organizations where dues, events, or membership needs to be managed.

Features important for nonprofits:

  • Specifically designed for fund accounting
  • Provides strong financial insight functionality
  • Project accounting
  • Grants management
  • Streamlines fundraising with automation
  • Includes employee self-service portal
  • User-level permissions
  • Dimensions for slicing data

Ease of use:
An all-in-one nonprofit ERP solution, Sparkrock features finance/accounting, HR, payroll, donor management, case management, and employee scheduling modules. Sparkrock is built on the Microsoft Dynamics platform, so it integrates with Microsoft products. It’s also scalable, allowing nonprofits to start with a small implementation and scale up when financially feasible.

The learning curve for Sparkrock is steep, and it’s not exactly intuitive. However, good user documentation and customer support can help flatten the curve. It’s very flexible, but that may be overwhelming. Users often recommend phasing in the implementation instead of doing a hard cutover.

Although it offers customizable reports, the parameters cannot be saved and have to be applied repeatedly. Indeed, the software doesn’t always fit the needs of the nonprofit, and users report having to change their own processes to make it work.

Cost:
It’s difficult to find specific information about Sparkrock pricing, which suggests that it’s expensive, but the website offers the option to request a “Free Consultation.” Sparkrock apparently offers subscription plans, along with a free trial.

Things we liked:

  • Cloud based OR desktop (Mac and Windows)
  • Scalability
  • Modular approach

Things we didn’t like:

  • Significant learning curve
  • Disjointed processes
  • Difficult-to-find functions

10. Xero

Website www.xero.com
Price from $9.00/mo
Free Trial 30 days

Best for:
Xero is a nice option for small to very small nonprofits with no need to manage multiple grants, projects, or funds. Keep in mind, though, that it isn’t really designed for nonprofits.

Features important for nonprofits:

  • Recurring invoices/payments for pledge management
  • Inventory management and purchase order process
  • Multi-currency functionality
  • Quote to invoice workflow
  • Sales tax calculation
  • Fixed asset manager
  • Good reporting capability
  • Accountant/bookkeeper access

Ease of use:
Xero is generally considered very easy to learn and use without technical or accounting knowledge. The clean and clear interface makes navigation easy. Xero also provides customer support and resources to help users learn the system.

Xero’s dashboard view features cash flow, bank balances and history, unpaid invoices, and an unusual feature called the “account watchlist,” which is custom to each user. Although Xero features a customizable chart of accounts, it is limited with no multi-fund, grant, or project management functionality.

It provides no native apps for accepting payments, but Xero integrates with tons of third party apps that help nonprofits fundraise, accept payments, and manage donors. Xero also integrates with Xero Me for payroll, Xero Expenses for employee reimbursement, and Xero Projects for project management and cost/time tracking. Plus, there are hundreds of additional app integrations for pretty much any function a nonprofit would need.

Cost:
Xero is an affordable option, offering plans at three levels. They also offer a significant discount for nonprofits. Their 30-day free trial should allow enough time for you to decide if the software is suitable for you.

Things we liked:

  • Affordable
  • Cloud-based file sharing functionality
  • Robust mobile app

Things we didn’t like:

  • Not true fund accounting
  • Cumbersome grants tracking
  • Limited budgeting features

When all is said and done, you’re running a nonprofit because you care about its mission and the greater good. Your commitment to your cause means that you want to run the best organization you can. You may not care about profit, but you can’t avoid the need to maintain finances while working within legal guidelines. Tax issues can be complicated, and the larger your nonprofit goes, the harder it will be to coordinate with members and donors, allocate funds to the right destinations. Members keeping the books will be grateful for the right accounting software.


FAQ

Does my nonprofit really need accounting software?

The short answer is that it’s a good idea to use accounting software designed specifically for or highly compatible with nonprofits. Using software can help you save time, track revenue, maintain accurate financial records, connect with members and donors, budget, and prepare for taxes as needed. Do you plan to grow your nonprofit? If so, it’s easier to start with accounting software than try to implement later.

Why do we need fund accounting?

Sometimes donors or agencies or grantors designate or require contributions to be used in specific ways. While for-profits are interested in knowing and documenting how profit has been earned, nonprofits want to show they have spent money. Nonprofit funds are divided into categories based on rules for use, whether they are restricted or unrestricted. This becomes even more important during an audit. Tracking these funds and their requirements can get very complex—very quickly.

What should we look for in nonprofit accounting software?

As we noted at the beginning of this article, nonprofit accounting software needs can vary, but basic requirements include financial statements, reporting, revenue tracking and expense tracking (including fund accounting), bank account reconciliation, member/donor management and communication, and budgeting. You may find you don’t need all these features, but this is a starting point for evaluating each option and making choices.

Why do we need cloud-based accounting?

Cloud-based accounting means that your data is stored in the cloud, so you are not chained to your desktop. Cloud accounting makes it easier for additional authorized users to access the information. In addition, nonprofits have to adhere to rules and regulations that can change quickly. Cloud software can be updated regularly to keep up with the latest changes.

What is the best software for my nonprofit?

We can’t tell you which nonprofit accounting software is best for your particular organization, but we can give you an overview of each, along with a list of features important for nonprofits, ease of use, cost, and some pros and cons to help you decide.