Non-profit organizations often face unique accounting challenges, such as tracking donations, managing grants, overseeing program expenses, and generating reports for donors and board members. The best bookkeeping software for non-profits should help simplify these tasks while ensuring financial transparency and accountability. Below is a list of the best bookkeeping software for non-profits, starting with the user-friendly FreshBooks.
1. FreshBooks
FreshBooks is widely known for its ease of use, making it ideal for smaller non-profits or organizations with limited accounting resources. I’ve seen many non-profits use FreshBooks to handle their bookkeeping needs efficiently without overwhelming staff and volunteers with complex features.
Key Features:
- Expense Tracking: Easily track expenses related to programs, events, and daily operations.
- Invoicing & Donation Tracking: Send professional invoices for grants or services and track donations.
- Multi-Currency Support: If your non-profit receives donations from abroad, FreshBooks handles multiple currencies with ease.
- Reporting: Generate financial reports such as balance sheets and profit & loss statements to present to donors or board members.
- Mobile App: Manage finances on the go, ideal for non-profits that frequently work in the field.
Why It Works:
FreshBooks is a great solution for non-profits that need simple and straightforward bookkeeping. It’s particularly well-suited for smaller organizations or those without dedicated accounting staff. The ability to track donations, handle invoicing, and create reports makes it a versatile tool for any non-profit’s financial needs.
2. Aplos
Aplos is specifically designed for non-profits and churches, making it a natural fit for organizations that need specialized accounting features. One of the most significant benefits of Aplos is its ability to handle fund accounting, ensuring that donations and grants are properly allocated to the correct programs or projects.
Key Features:
- Fund Accounting: Easily track multiple funds (e.g., general fund, specific programs, building projects).
- Donation Tracking: Manage donations and grants, track donor history, and generate year-end contribution statements.
- Online Giving Integration: Offers an integrated platform for donors to contribute online, with automatic donation tracking.
- Automated Reporting: Create financial reports tailored to the needs of your organization, including statements by fund.
- Volunteer Management: Track volunteers and their hours alongside financial data.
Why It Works:
Aplos is tailored for non-profits with features like fund accounting and donation management, which are crucial for organizations that need to track restricted and unrestricted funds separately. Its all-in-one solution simplifies donor management, financial reporting, and online giving.
3. QuickBooks Online (Non-Profit Version)
QuickBooks Online is a versatile and well-known accounting software that offers a specific non-profit version, making it one of the best options for non-profits that need more advanced features or scalability as their organization grows.
Key Features:
- Fund Accounting: Easily track and report on restricted and unrestricted funds.
- Donor Management: Manage donor information and generate year-end contribution receipts.
- Custom Reports: Create customized reports for board members, donors, or grant agencies.
- Integration with Third-Party Tools: Works well with fundraising tools, CRM systems, and payroll services.
- Multi-Currency Support: Ideal for non-profits that receive international donations or grants.
Why It Works:
QuickBooks Online is great for non-profits that need a robust and scalable accounting solution. Its integration with other business tools and detailed reporting capabilities makes it ideal for larger non-profits or organizations with more complex financial needs. The non-profit version helps streamline processes like donor reporting and fund management.
4. Blackbaud Financial Edge NXT
Blackbaud is a top-tier solution for large non-profits that require a comprehensive, high-powered system. It’s designed specifically for non-profits, with deep fund accounting and grant management tools that help organizations stay compliant and financially sound.
Key Features:
- Fund Accounting: Manage multiple programs and track restricted and unrestricted funds.
- Grant Management: Track grant income, spending, and reporting for compliance with grantor requirements.
- Budgeting Tools: Create and manage detailed budgets for different programs, projects, or departments.
- Donation Management: Integrates with Blackbaud’s other tools for donor management and fundraising.
- Audit-Ready Reports: Generate detailed financial reports that are audit-ready for compliance and transparency.
Why It Works:
Blackbaud is a comprehensive solution for large non-profits, especially those managing multiple programs or grants. Its fund accounting capabilities and seamless integration with donor management and fundraising tools make it the go-to for larger organizations that need to stay compliant and transparent.
5. Sage Intacct
Sage Intacct is a cloud-based financial management software with strong fund accounting and grant tracking capabilities, making it perfect for mid-sized and large non-profits. It helps streamline complex accounting tasks while maintaining the financial transparency that non-profits need.
Key Features:
- Fund Accounting: Track restricted and unrestricted funds separately, ensuring proper allocation.
- Grant and Donation Tracking: Manage grants, donations, and other funding sources with ease.
- Advanced Reporting: Create custom reports to show the financial health of the organization to stakeholders and donors.
- Multi-Entity Support: Manage multiple locations or programs under one platform with real-time consolidated financials.
- Compliance: Built-in compliance tools ensure that the organization stays audit-ready.
Why It Works:
Sage Intacct is an ideal solution for mid-sized to large non-profits that need advanced accounting tools. Its ability to manage multiple programs, funds, and entities under one roof is perfect for organizations with complex accounting needs. The reporting tools also make it easy to share data with donors and boards.
6. Nonprofit Treasurer
Nonprofit Treasurer is a free bookkeeping tool designed specifically for smaller non-profits. It’s ideal for organizations with volunteer treasurers or no dedicated accounting staff, providing an easy way to manage financials without needing a complex system.
Key Features:
- Fund Accounting: Track different funds and ensure proper allocation of donations.
- Basic Reports: Generate simple reports to show financials to board members or donors.
- Budget Tracking: Create and manage a simple budget for the organization’s operations.
- Expense Tracking: Track expenses related to programs, events, and general operations.
Why It Works:
For small non-profits with limited resources, Nonprofit Treasurer offers a free and easy-to-use solution. It’s great for organizations that don’t need all the advanced features of other software but still want to track their finances in an organized way.
7. Wave Accounting
Wave is a free accounting tool that’s perfect for small non-profits and startups. It provides all the essential bookkeeping features needed to manage donations, expenses, and generate reports without any upfront cost.
Key Features:
- Expense and Income Tracking: Easily track donations and program expenses.
- Invoicing: Create and send invoices for donations or services.
- Reporting: Generate basic financial reports to present to your board or donors.
- Free Accounting: Wave offers free accounting and invoicing tools, making it accessible for small non-profits.
- Multi-Currency Support: Handles international donations and grants in multiple currencies.
Why It Works:
Wave is a budget-friendly option for small non-profits that don’t need complex accounting tools. It covers all the basics, including tracking donations, generating financial reports, and invoicing, without the need for a subscription.
What to Consider When Choosing Bookkeeping Software for Non-Profits
1. Fund Accounting
Non-profits must track restricted and unrestricted funds separately. Make sure the software offers fund accounting features to properly allocate and manage these donations.
2. Donor Management
Choose software that integrates donor management, allowing you to track donations, manage donor information, and send tax-compliant receipts.
3. Grant Tracking
If your non-profit receives grants, look for software that can track grant income, spending, and compliance reporting.
4. Financial Reporting
Reporting is crucial for non-profits, especially for board meetings and donor transparency. The software should generate clear, customizable reports that showcase financial health.
5. Scalability
Ensure that the software can scale as your organization grows, with additional features like payroll, budgeting, and integration with other tools as needed.
Comparison Table for Quick Review
| Software | Best For | Key Features | Price Range |
|---|---|---|---|
| FreshBooks | Small to medium non-profits | Expense tracking, invoicing, donation tracking | Starts at $15/month |
| Aplos | Non-profits needing fund accounting | Fund accounting, donation tracking, online giving | Starts at $39.50/month |
| QuickBooks Online | Growing non-profits | Fund accounting, donor management, custom reports | $30+/month |
| Blackbaud Financial Edge | Large non-profits | Fund accounting, grant management, audit-ready reports | Custom pricing |
| Sage Intacct | Mid-sized to large non-profits | Fund accounting, multi-entity support, advanced reporting | $20+/month |
| Nonprofit Treasurer | Small, volunteer-run organizations | Basic fund accounting, budget tracking, expense management | Free |
| Wave | Small non-profits or startups | Free accounting, donation tracking, basic reporting | Free |
My Top Recommendation
For small to medium non-profits, FreshBooks is a fantastic option due to its simplicity and essential features like expense tracking and reporting. However, if your non-profit requires more advanced features like fund accounting and grant management, Aplos or QuickBooks Online (Non-Profit Version) would be ideal choices. For large non-profits with complex financial needs, Blackbaud Financial Edge NXT or Sage Intacct will provide the robust tools needed to manage multiple programs, grants, and compliance requirements.
Remember to choose a platform that fits your current needs but can scale as your organization grows. Test a few options with free trials to see what works best for your non-profit!