Nonprofit bookkeeping software transforms financial management, freeing up more time for mission-critical work. This software automates donation tracking, streamlines expense management, and generates instant reports for better decision-making.
In this article, we’ll explore the top 14 solutions, comparing features and pricing to suit organizations of all sizes. Discover how the right software can amplify your nonprofit's effectiveness, from enhancing donor transparency to simplifying tax compliance.
14 bookkeeping software solutions for nonprofits to manage finances
- Wave
- ZipBooks
- QuickBooks Online
- Aplos
- FreshBooks
- Sage Intacct
- Blackbaud Financial Edge
- Realm
- PowerChurch
- Springly
- GnuCash
- Zoho Books
- NonProfitPlus
- NetSuite
4 benefits of using nonprofit bookkeeping software
1. Streamlined financial management
Bookkeeping software automates financial tasks, reducing manual entry errors and saving valuable time. These automation features ensure accurate record-keeping and facilitate seamless financial transaction tracking, like expenses and revenues.
An organized workflow leads to more efficient and error-free financial management.
2. Compliance and reporting
Maintaining compliance with nonprofit organization regulations is crucial, and bookkeeping software helps organizations adhere to these requirements by creating accurate and timely financial reports.
This feature makes audits easier and keeps financial operations transparent, which is crucial for maintaining trust with stakeholders and regulators.
3. Donor management features
Many bookkeeping systems offer integrated donor management features, which help improve the process of tracking donations and managing donor information. They also enable nonprofits to generate detailed reports on donation trends and donor engagement, improving fundraising efforts and communication with supporters.
4. Enhanced accuracy
Bookkeeping software enhances accuracy by automating calculations and standardizing data entry processes, significantly reducing the risk of human error in financial records.
Accurate records are important for nonprofits as financial errors can affect how funds are used or reported. Using software, nonprofits can avoid these problems and trust that their records are correct.
Our top 14 picks of bookkeeping software for nonprofits
Best free and entry-level software
1. Wave
Wave is a cost-effective accounting software solution that is ideal for tight budgets, offering core accounting features at no cost. It is simple to use with an easy interface for minimal accounting needs and includes basic tools for bookkeeping and basic tax handling.
Key features:
- Expense tracking: Monitors and categorizes spending
- Basic financial reports: Provides essential accounting reports for financial oversight
- Customizable invoicing: Creates invoices for donations and membership fees
- Multi-user access: Supports small teams with multiple users
- Tax reporting: Handles basic tax reporting, though not tailored for nonprofits
2. ZipBooks
ZipBooks's economical pricing makes it perfect for small organizations. The platform's detailed reporting features help nonprofits maintain financial transparency and make informed decisions. The software includes simple tools with the basic functions needed for minimal accounting, and it offers access to support through email and a help center.
Key features:
- Customizable invoicing: Tailors invoices for donations and membership fees
- Expense tracking: Helps monitor and categorize expenses
- Detailed financial reports: Offers clear financial records
- Basic donor tracking: Manages donor contributions
- Support options: Includes email support and a help center
Best for nonprofit cash flow management
3. QuickBooks Online
QuickBooks Online software provides nonprofits with decision-making tools through its comprehensive financial management system. The platform combines forecasting capabilities with dynamic dashboards and integrates with other nonprofit tools to streamline operations and enhance efficiency.
Key features:
- Cash flow forecasting: Predicts future cash flows for planning
- Budgeting and expense tracking: Manages budgets and tracks spending
- Real-time financial dashboards: Provides up-to-date financial insights
- Customizable grant reporting: Tailors reports for tracking grant spending
- Recurring donation management: Automates tracking of ongoing donations
- Integration with nonprofit tools: Connects with donor databases and CRM systems
4. Aplos
Aplos offers comprehensive financial planning tools with advanced forecasting capabilities that help nonprofits make data-driven decisions. It provides mobile access for on-the-go management and includes effective budgeting and donor management tools.
Key features:
- Budget tracking: Monitors spending against budget limits
- Forecasting tools: Predicts future financial trends
- Cash flow management: Manages cash flow effectively
- Mobile access: Allows management of finances and donations on the go
- Donor tracking: Tracks interactions and contributions
Best for expense tracking and management
5. FreshBooks
FreshBooks provides detailed expense management by categorizing expenses and managing approval processes. It also offers custom invoicing features that are adaptable to your nonprofit's unique needs. FreshBooks offers streamlined approval workflows for efficient management.
Key features:
- Expense tracking: Categorizes and monitors expenses
- Approval workflows: Streamlines the process for expense approvals
- Customized invoicing: Meets nonprofit needs with tailored invoices
- Integration with third-party apps: Allows tracking of volunteer hours via other apps
- Comprehensive support: Includes email, live chat, and help center
6. Sage Intacct
Sage Intacct provides comprehensive expense tracking and management, along with detailed reporting tailored to your specific needs. Its scalable design makes it suitable for complex financial requirements, while advanced tools enable effective management of restricted funds.
Key features:
- Expense management: Tracks and reports on expenses
- Advanced financial reporting: Offers customizable financial reports
- Integration with systems: Connects with other financial tools
- Budget tracking and forecasting: Manages budgets and predicts financial trends
- Restricted funds management: Ensures compliance with donor restrictions
Best for customizable reporting
7. Blackbaud Financial Edge
Blackbaud Financial Edge offers tailored reporting by generating reports for various stakeholders. This accounting software ensures that diverse needs are met through customizable options.
It has tools for deep analysis, which help with strategic decisions, making it a great tool for nonprofits.
Key features:
- Customizable reports: Creates tailored reports for specific needs
- Integration with nonprofit tools: Connects with other systems for comprehensive management
- Donor and financial summary reports: Provides insights into donor data and financial performance
- Advanced data analysis: Supports strategic planning with in-depth analysis
- Robust grant management: Tracks and manages grants with compliance monitoring
- Training resources: Includes online courses, webinars, and support
Best for easy church-donation management
8. Realm
Realm church accounting software ensures accurate tracking and reporting of church donations. It simplifies the management of member contributions and enhances financial transparency for churches, making it easier to maintain clear records.
Key features:
- Specialized donation tracking tools: Provides precise tracking of donations with detailed reports
- Comprehensive member management: Efficiently manages and organizes member contributions and records
- Integrate with church management systems: It connects with existing church software for smooth operations
9. PowerChurch
PowerChurch is designed to streamline and simplify the complexities of church management. It comes with a comprehensive suite of tools that handle everything from donations to membership.
Key features:
- Advanced donation tracking: Offers detailed tracking and reporting for donations
- Comprehensive financial management tools: Provides robust tools for managing finances and budgeting
- Member and event management: Handles member information and event coordination
- Seamless integration with church financial systems: It connects with existing systems for streamlined operations
10. Springly
Springly is a helpful tool for all kinds of religious institutionses, such as mosques, churches, and temples. It simplifies bookkeeping and keeps everything organized so religious organizations can focus on helping their communities and achieving their goals.
Key features:
- Multi-faith support: Works for different types of religious groups
- Donation tracking: Keeps track of donations and helps show where the fund goes
- Member management: Organizes information about members and helps keep in touch with them
- Event planning: Helps plan and manage events smoothly
- Easy integration: Connects with other software, making everything work together
Best for small organizations
11. GnuCash
GnuCash is an open-source fund accounting tool for small nonprofit organizations. It offers powerful features suitable for small nonprofits needing detailed financial oversight. GnuCash allows for complex financial customization but requires a strong grasp of accounting, as its interface is less user-friendly.
Key features:
- Double-entry accounting: Records every transaction in two accounts to ensure accuracy
- Fund accounting: Tracks multiple funds separately, helping manage various projects and donations
- Budget tracking: Monitors budgets to help plan & track expenses and stay within limits
- Comprehensive financial reporting: Generates detailed reports for clear insights into financial status
12. Zoho Books
Zoho Books is an affordable solution for small organizations, and people with limited accounting experience can navigate it effectively. The software distinguishes itself as a low-cost solution with all the necessary functionalities.
Key features:
- Basic bookkeeping features: Includes essential tools for managing day-to-day finances
- Affordable pricing: Provides cost-effective solutions for organizations on a budget
- Invoice and expense management: Simplifies tracking and managing invoices and expenses
- Essential financial reporting: Offers fundamental reporting tools to monitor financial performance
Best for large organizations
13. NonProfitPlus
NonProfitPlus offers a robust accounting package designed for nonprofits and allows unlimited user access for easier delegation. NonProfitPlus provides a solid foundation for financial management, helping organizations improve efficiency and transparency.
Key features:
- General ledger: Offers a flexible account structure and advanced financial reporting
- Accounts receivable: Automates invoicing and manages collections, including recurring billing and support for multiple currencies
- Accounts payable: Manages liabilities and payments, with features for recurrent documents and vendor refunds
- Cash management: Controls daily transactions, cash balances, and bank account reconciliation
14. NetSuite
NetSuite accounting software handles extensive financial data and complex reporting, and it is well-suited for nonprofits with significant financial needs.
Key features:
- Advanced financial tools: Offers robust features for handling complex financial tasks and operations
- Scalability for large organizations: Designed to grow with your organization, supporting expanding needs
- Integration with extensive databases: Connects seamlessly with large data systems for efficient management
- Comprehensive financial management: Full suite of tools for thorough financial oversight and planning
How to choose the right bookkeeping software for your nonprofit
1. Assess your organization's needs
Begin by evaluating your nonprofit's size, financial complexity, and transaction volume. Consider your current pain points and future growth plans.
Do you need advanced features like fund accounting or grant management? Are you looking for basic bookkeeping or comprehensive financial management? Understanding these needs will guide your software selection.
2. Define your budget
Determine how much you can allocate to bookkeeping software. Remember to factor in the initial cost and ongoing expenses like subscriptions, upgrades, and potential training. Some software providers offer discounts to nonprofits, so be sure to inquire about these options. You should also consider partnering with a nonprofit bookkeeping service provider if you have the budget.
3. Prioritize key features
Based on your assessment, list must-have features. These might include:
- Fund accounting capabilities
- Donor management integration
- Grant tracking and reporting
- Multi-user access
- Cloud-based accessibility
- Customizable reporting
Rank these features in order of importance to your organization.
4. Evaluate user-friendliness and support
The best software is one your team will use. Look for intuitive interfaces and comprehensive training resources.
Consider the level of customer support offered – do they provide phone, email, or chat support? Are there user forums or knowledge bases available?
5. Check integration and scalability capabilities
Your bookkeeping software should work seamlessly with your existing systems. Check if it integrates with your CRM, payment processors, and other key tools. This integration can save time and reduce errors by automating data transfer between systems.
Choose software that can grow with your organization. It should be able to handle an increasing number of transactions and users without compromising performance. Look for options to add modules or upgrade to more advanced versions as your needs evolve.
6. Investigate security and compliance
Nonprofit financial data is sensitive. Ensure the software you choose has robust security measures in place, including data encryption and regular backups. It should also help you comply with relevant financial regulations and reporting requirements.
7. Test before committing
Take advantage of free trials or demos to test the software in real-world scenarios. Involve key staff members in this process to get diverse perspectives on usability and functionality.
Transition from an old to a new system in 9 simple steps
Transitioning from an old bookkeeping system to new software can be a significant change for nonprofit organizations. Here’s how to make the process smoother:
- Assess your current system:some text
- Evaluate the features and limitations of your existing system
- Identify the data and processes you need to migrate
- Choose the right software:some text
- Ensure the new software meets your specific needs
- Consider compatibility with existing tools and systems
- Plan the migration process:some text
- Develop a detailed migration plan with timelines
- Assign a dedicated team or individual to oversee the transition
- Backup your data:some text
- Create backups of all financial data before starting the migration
- Store backups in multiple locations for security
- Clean up your data:some text
- Review and clean your data to remove duplicates and errors
- Ensure that data is accurate and up-to-date
- Test the new system:some text
- Run a test migration to identify potential issues
- Validate that data is correctly transferred and functions as expected
- Train your team:some text
- Provide training for staff on how to use the new software
- Offer resources such as user guides or support contacts
- Monitor and adjust:some text
- Monitor the transition closely for any issues
- Make adjustments as needed based on user feedback
- Ensure continuity:some text
- Keep the old system accessible for a short period in case of discrepancies
- Transition completely only after verifying that the new system works correctly
By following these steps, you can minimize disruption and ensure a smoother transition to your new bookkeeping software.
Final thoughts on nonprofit bookkeeping software
Selecting the right bookkeeping software is a crucial step in streamlining your nonprofit's financial management.
By carefully assessing your needs, researching options, and prioritizing key features like usability and integration capabilities, you can find a solution that not only meets your current requirements but also supports your organization's growth.
Remember, effective financial management extends beyond bookkeeping. While you're optimizing your accounting processes, consider how you can enhance other aspects of your nonprofit's operations. Zeffy offers a 100% free fundraising platform for nonprofits to save unnecessary software and transaction costs.
By combining bookkeeping software with Zeffy, you can create a comprehensive system that supports all aspects of your nonprofit's financial and donor management needs.
