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Expanding nonprofits often experience some growing pains. One of the most prevalent growing pains? Ensuring your technology will keep up with your nonprofit’s needs. Specifically, nonprofit finance professionals are concerned about accounting software needs.

According to our research, 59 percent of nonprofit finance professionals are considering purchasing new software within the next year and a half. That means you’re not alone in your search for the best accounting software for nonprofits!

Accounting software for nonprofits is specifically designed to handle the variety of funding requirements, complex budgets, custom reports, and internal operations records that organizations use in their day-to-day tasks.

This nonprofit accounting software comparison is designed to help nonprofits like yours choose a solution that will best fit your organization’s needs. We’ve reviewed the top 6 providers for you to consider in your research for the best software:

  1. MIP Fund Accounting
  2. Financial Edge by Blackbaud
  3. Fund EZ Fund Accounting
  4. Xero
  5. Quickbooks
  6. FinancialForce Accounting

Are you ready to learn more about what these software providers have to offer? Let’s jump in!

MIP Fund Accounting is the best accounting software for nonprofits of all shapes and sizes.

#1 Best Accounting Software: MIP Fund Accounting

Nonprofit Accounting Software Overview

MIP Fund Accounting offers a True Fund Accounting software that is completely customizable and built to grow with your organization.

The customized module system comes with a core set of accounting modules and allows your nonprofit to choose others to add on that will best serve your organization as it continues to grow.

MIP Fund Accounting ensures that your organization has all the tools you need to make better-informed financial decisions, manage finances through tracking and reporting features, and ensure the productivity of your nonprofit’s mission.

Pros of MIP Fund Accounting

MIP Fund Accounting offers a comprehensive True Fund Accounting solution with solutions such as a general ledger, accounts payable, bank reconciliation, budgeting, accounts receivable reporting, data imports and exports, and a forms designer.

In addition to these standard features, this accounting software solution also offers

  • A human resource module so that your nonprofit can track employee information, enroll employees for benefits, and complete payroll within the same software solution.
  • Robust analytical tools to help your nonprofit find, track, and report the key accounting metrics that are most important to the board, funders, and your organization.
  • Audit-prepared reports with FASB and GASB reporting built right into the software. These reports will help you meet requirements for fraud deterrence and alerting.

MIP Fund Accounting offers software that far surpasses nonprofit industry standards of safety. With the all-inclusive cloud-based suite, you won’t need to worry about hardware, patch, or upgrade cycles. You also have the choice of on-premise hosting if your nonprofit is more comfortable with that option.

Additional thoughts on MIP Fund Accounting

The most prevalent negative aspect of MIP Fund Accounting is that it can take more time and effort to set up than other solutions. This is due to the highly customized nature of the software.

Template solutions tend to be faster and easier to set up and configure for your organization. However, those solutions don’t offer specialized catering to your nonprofit’s exact needs.

Luckily, MIP Fund Accounting has experts on staff who can work with organizations to walk through the implementation and customization phases and beyond.

MIP Fund Accounting is one of the best accounting software for nonprofits because it gives you more time to focus on your cause.

Recommendation

Although the customization of MIP Fund Accounting may take additional time up front, it ultimately saves you time as your nonprofit continues to grow. This scalable solution provides a higher-quality experience than other cookie-cutter software.

Plus, with expert advice offered throughout your nonprofit’s life-long relationship with them, you’ll never have a question that can’t be answered swiftly and accurately. It’s no wonder MIP Fund Accounting is listed as #1 from some of the most trusted names in the nonprofit software world.

Read more as to why Financial Edge is one of the best accounting software for nonprofits.

#2 Best Accounting Software: Financial Edge by Blackbaud

Nonprofit Accounting Software Overview

Financial Edge by Blackbaud is designed to help your nonprofit manage restrictions, grants, donations, and allocations in a single accounting software solution. This software was designed with nonprofits in mind so that you can spend less time on accounting and more time on your organization’s mission.

The personalized intuitive dashboards help nonprofits focus on the important metrics for the organization. Plus, graphical displays make these metrics more user-friendly. When you dive deeper, you can create detailed sub-accounts for grants and projects using Financial Edge. Plus, the reporting functions come with over 100 customizable options for your organization to take advantage of.

Pros of Financial Edge by Blackbaud

Financial Edge has several features that make it one of the most unique accounting software platforms for nonprofits. These features include:

  • Future budgeting. With Financial Edge, you can budget as far into the future as you want in order to make budgetary plans and comparisons across the years.
  • Automatic warnings. This software will warn your organization if you’re conducting a transaction that will put your organization over budget for the month, quarter, or year depending on how you budget.
  • Custom allocation pools. You can pool programs, grants, and accounts based on the allocation purpose. Then you can manage allocations by previewing detailed journal entry reports before posting these allocations to the general ledger.

Blackbaud offers a variety of products that are custom-built for nonprofit organizations. All of these software solutions fully integrate with one another, making it easy to streamline information from your nonprofit’s fundraising software to the CRM to the accounting software.

Additional thoughts on Financial Edge by Blackbaud

While the pros of Financial Edge by Blackbaud make it a tempting choice, it’s important to keep in mind some of the drawbacks to this software.

Financial Edge by Blackbaud is best for larger organizations with the budgets and team capacity to take on such a complex platform.  Generally, large nonprofits enjoy the benefits of working within the Blackbaud platform by investing in several of the products, which integrate with one another.

Financial Edge by Blackbaud is one of the best accounting software for nonprofits because it's built by the world's leading cloud software company.

Recommendation

If your nonprofit already has access to Blackbaud’s other solutions, Financial Edge could be a good fit for your organization. With integrated software solutions, your organization has the opportunity to save time and energy with an automated transfer of information, resulting in more efficient processes.

Read more about why Fund EZ is one of the best accounting software for nonprofits.

#3 Best Accounting Software: Fund EZ Accounting

Nonprofit Accounting Software Overview

Fund EZ is a comprehensive accounting software solution that prides itself on simple navigation and accessibility. Their simple interface and easy-to-use menus facilitate your nonprofit’s processes in finding the most relevant information at the best time.

With Fund EZ, you can sort, filter, export, email, and print data as necessary for different reports. Plus, your nonprofit can control who sees what information within the software. You can grant user rights by group or department. This segmented security makes it easy to hide sensitive information so only the necessary audiences can see it.

Pros of Fund EZ

Fund EZ makes it easy to construct segments within the software that reflect your nonprofit’s programs, projects, funding streams, and departments. From there, it’s easy to create plans and record nonprofit expenditures based on the segment. You can:

  • Budget by segment and track variances and unexpended amounts.
  • Create and print financial reports customized by segment and even across fiscal years.
  • Consolidate segments in summary or columnar formatting.
  • Compare actual expenditures vs. budget for segments, groups of segments, or entire nonprofits.

Tracking your group members, segments, and supporter relations in your accounting software helps nonprofits make targeted financial decisions based on the specific needs of various groups.

The automatic updates to the software solution allow your nonprofit to focus more on these fundraising and financial decisions rather than on the software itself.

Additional thoughts on Fund EZ

The simplicity of Fund EZ makes it easy to learn without an extensive accounting background. However, users with this extensive background could find the lack of flexibility within the software frustrating.

While the starting price of this software is competitive with other comparable solutions, mid-sized nonprofits will quickly need to invest in Fund EZ Pro to obtain the features they need.

Fund EZ is one of the best accounting software for nonprofits because it's incredibly comprehensive.

Recommendation

The simplicity of Fund EZ makes it one of the most approachable solutions for smaller nonprofit organizations.

Fund EZ is a great solution for smaller nonprofits without a full-time finance professional because it’s easy to learn, with plenty of template solutions to fit your organization’s needs.

If you’re considering investing in Fund EZ, conduct research to make sure your nonprofit will succeed with the features included in the basic solution. Then, be sure you’ll be able to afford to grow into the Pro solution as necessary.

Read more about why Xero is one of the best accounting software for nonprofits.

#4 Best Accounting Software: Xero for Nonprofits

Nonprofit Accounting Software Overview

Xero for Nonprofits is an inexpensive software solution that can help kickstart the process for small nonprofits. The mobile app makes it stand out in the crowd. With Xero, your nonprofit can access financial information from any device.

This accounting software for nonprofits facilitates the process for nonprofits to send invoices, reconcile transactions, and manage bills.

Xero for Nonprofits Pros

Xero is a well-established software solution with many connections that make it a valuable resource for organizations. Xero integrates with 500+ tools. Therefore, making use of these integration tools can streamline operations and facilitate nonprofit operations as a whole.

One integration worth pointing out is with PayPal and Stripe. This ensures that Xero supports payment services for supporters who want to donate directly online.

The 6-month trial period of this software enables your nonprofit to try out the solution to ensure it will meet all of your organization’s needs before you make the final purchase.

Additional thoughts on Xero for Nonprofits

Because the software was originally designed for small businesses, the nonprofit platform is less specialized and comprehensive than larger solutions that were designed specifically for nonprofit organizations.

Xero is, therefore, best used by small nonprofits that have less complexity built into their accounting system. While there is a scalable solution available, even the highest-level solution will be easily outgrown by more established nonprofits.

Xero is one of the best nonprofit accounting software for nonprofits because you can manage your data from any device.

Recommendation

Xero is a wonderful solution for small nonprofits that might be in a pinch when it comes to financing their software solutions. Small nonprofits who plan to remain around their current size for a while should consider Xero for their software needs.

It’s important to remember that growing organizations may quickly outgrow Xero for Nonprofits. However, the multitude of integrations they have with other organizations may solve some of these growing pains.

Before investing, make a prediction plan as to your nonprofit’s most pressing growing pains. Check out Xero’s main features, scaled features, and integration partners to make sure you’ll have access to the important functions your organization needs into the future.

Read more about why Intuit Quickbooks is one of the best accounting software for nonprofits.

#5 Best Accounting Software: Intuit Quickbooks

Nonprofit Accounting Software Overview

Intuit Quickbooks is a fund accounting solution with all of the core features necessary for small to mid-sized nonprofits. Their core features cover basic accounting needs, but an add-on library expands their services to include additional elements.

It’s easy to connect Quickbooks accounting software to your nonprofit’s bank in order to sync transactions. Plus, you can connect Intuit Quickbooks to other nonprofit software solutions like NeonCRM, DonorPath, and Kindful.

Intuit Quickbooks Pros

Intuit Quickbooks is a top accounting software solution for nonprofits that offers payroll features in addition to basic fund accounting software. It’s easy to track overhead costs directly in your accounting software with these types of features.

Quickbooks also facilitates the customization of reports for your organization. You can customize reports based on the important metrics for your nonprofit, then sent these reports and updates to donors for accounting transparency. Organize your donors into lists on Quickbooks in order to quickly send different reports to different segments of donors.

Additional thoughts on Intuit Quickbooks

While Quickbooks has the core features necessary for a nonprofit’s fund accounting needs, they are still missing some features that other solutions offer as a part of their core services. For instance, this solution doesn’t offer grant management or tax management features like an audit trail.

While these types of features may not be available in the core features of Quickbooks, you can likely find them and other features in the add-on library. Purchasing many of these add-ons can add up over time.

Quickbooks was originally built for small businesses rather than nonprofits. While they have a nonprofit option, it’s important to recognize that their origin in the for-profit world may make the software slow to pick up and update based on emerging needs in the nonprofit world.

Intuit Quickbooks is one of the best accounting software for nonprofits because it has an add-on library to meet your specific needs.

Recommendation

Intuit Quickbooks draws in small nonprofits trying to save a buck on their accounting software solution. It’s very easy to get the solution up and running for nonprofits. However, keep in mind that adding features can add up quickly and the platform may have difficulty keeping up with emerging needs in the nonprofit world.

However, the ease of set-up and maintenance makes Intuit Quickbooks a great entry-level accounting software for nonprofits. Keep a close eye on the add-on expenses and necessary features to ensure the software won’t slow your nonprofit’s growth as it expands.

Read more about why Financial Force is one of the top accounting software for nonprofits.

#6 Best Accounting Software: FinancialForce Accounting

Nonprofit Accounting Software Overview

FinancialForce Accounting is accounting software for nonprofits built on the Salesforce platform. This software solution is built for the good of the employees. It facilitates the use of accounting for HR representatives.

This software focuses heavily on streamlining your nonprofit’s internal affairs to be as comprehensive and effective as possible.

FinancialForce Pros

FinancialForce’s accounting software for nonprofits facilitates communication among the staff members working at your nonprofit. The real-time reporting features are presentable so that they can be understood universally across the team.

The provider offers multiple training opportunities such as:

  • Documentation
  • Webinars
  • Live Online Training
  • In-Person Service

Plus, their support team is available with a 24/7 live representative.

Working within a single system for payroll management, tax management, and built-in intercompany reconciliation makes internal operations for your nonprofit a breeze.

Additional thoughts on FinancialForce

Because FinancialForce was built on a platform designed specifically for businesses, not necessarily nonprofits, you can lose some of the specializations that comes with working on a platform built specifically for nonprofits. It is a business accounting software solution with fund accounting functionality built in.

FinancialForce comes across as an incredibly HR-friendly accounting solution, but it is less focused on the accountability of your financial information to your donors.

If your nonprofit isn’t on the Salesforce platform, you lose a lot of the automated information transfer that FinancialForce prides themselves on.

FinancialForce is one of the best accounting software for nonprofits because it streamlines internal processes.

Recommendation

If your nonprofit is focusing on streamlining internal operations and overhead costs, FinancialForce may be the software for you. It’s also a handy HR tool if your nonprofit is already on the Salesforce platform and focusing on expanding your Salesforce ecosystem. 


Make sure your research process doesn’t stop here! Your nonprofit should feel prepared and confident as it continues to grow and you purchase new software solutions. Check out these additional resources to continue learning how to facilitate your nonprofit’s growth!

See how MIP Fund Accounting can streamline your operations. Request a demo!