In addition to streamlining basic accounting tasks, nonprofit accounting software may also track how donations and grants are being used, store information about donors, include fundraising tools and make it easy to accept online donations, among other industry-specific capabilities.
Although products built specifically for nonprofits are more likely to deliver on those features, organizations can also use non-industry-specific accounting software, like Xero or QuickBooks, and integrate with third-party apps as needed.
Before making a decision, consider whether you need a solution that uses fund accounting. Nonprofits use this bookkeeping method to monitor how funds are used and track each separately. Your decision will also boil down to the size of your nonprofit, your budget and whether or not you want an all-in-one product.
Here are our top picks for nonprofit accounting software.
Our Nerdy picks for
Overall nonprofit accounting software
AplosHR management features
AccufundBest Accounting Software for Nonprofits
Product | Promotion | Learn more | ||
|---|---|---|---|---|
Xero Learn more on Xero's secure website | 5.0/5 Best for Scalable accounting software for nonprofits | $15/month Additional pricing tiers (per month): $42, $78. | 30-day free trial or monthly discount (terms vary). | Learn more on Xero's secure website |
Sage Intacct Learn more on Sage Intacct's secure website | Best for Nonprofit accounting automation tools | N/A Quote-based. | 30-day free trial | Learn more on Sage Intacct's secure website |
QuickBooks Enterprise | 4.0/5 Best for Enterprise nonprofit accounting software | $1,410/year Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra. | 30-day free trial | |
Wave Accounting | 3.5/5 Best for Free accounting software for nonprofits | $0 Free (Wave makes money via paid money management products). | N/A | |
Accufund | Best for HR management features | N/A Quote-based. | N/A | |
Aplos | Best for Overall nonprofit accounting software | $79/month Additional pricing tiers (per month): $99, $189. | 15-day free trial |
Our pick for
Scalable accounting software for nonprofits
Xero
Learn more
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $42, $78.
Promotion
30-day free trial
or monthly discount (terms vary).
Xero allows unlimited users at every subscription tier, a valuable feature for businesses where several users may need at least limited access to the system to run reports or analyze performance. Xero has a customizable reporting dashboard that lets each user rearrange or hide panels.
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Our pick for
Nonprofit accounting automation tools
Sage Intacct
Learn more
on Sage Intacct's secure website
Starting at
N/A
Quote-based.
Promotion
30-day free trial
Sage Intacct is cloud-based accounting software that can be tailored to fit businesses in a variety of industries, including the nonprofit sector. It includes more automation features, like automated revenue recognition, than some of its competitors and is tailored to organizations that plan to expand. In fact, Sage Intacct has features intended for nonprofits that work with multiple currencies, entities and locations.
Pros
- Manage grant budgets.
- Revenue recognition tool helps nonprofits stay compliant.
- Automation features streamline grant, fund and billing processes.
- Fund accounting features for tracking how donations and grants are used.
Cons
- Quote-based pricing makes it difficult to compare with competitors.
- Not suitable for small nonprofits that don’t plan to grow.
Our pick for
Enterprise nonprofit accounting software
QuickBooks Enterprise
Starting at
$1,410/year
Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.
Promotion
30-day free trial
QuickBooks Enterprise is one of the most feature-rich desktop accounting software products on the market. While QuickBooks Online and other cloud-based products are typically easier to use, they don’t usually come with industry-specific features like QuickBooks Enterprise does. These include specialized reporting for construction companies, nonprofits, manufacturers, wholesalers and distributors.
Pros
- Strong feature set includes thorough record-keeping, invoicing and advanced inventory management and pricing rules.
- More than 200 reports, including industry-specific options for various industries.
- 24/7 phone and chat support.
Cons
- Outdated user interface.
- Limited direct, third-party integrations for payroll software and popular point-of-sale systems.
- Annual subscriptions are expensive; each additional user license costs extra.
Our pick for
Free accounting software for nonprofits
Wave Accounting
Starting at
$0
Free (Wave makes money via paid money management products).
Promotion
N/A
Unlike some “freemium” software products, Wave doesn’t put out a bare-bones free product as bait, then load it down with costly upgrades. The free accounting software lets you add unlimited collaborators, along with unlimited bank and credit card connections. It can be a simple solution for small, service-based businesses.
Pros
- Free.
- Unlimited partners, collaborators and accountants.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
Cons
- Lacks features that quickly growing companies need, like audit trails. There are no additional plans to increase functionality.
- Must subscribe to Wave’s paid services (payroll, payments, advisor, etc.) to receive customer support from a human.
- No third-party integrations, mileage tracking feature or ability to accept in-person card payments.
Our pick for
HR management features
Accufund
Starting at
N/A
Quote-based.
Promotion
N/A
AccuFund is available as both a desktop product and a cloud-based solution. In particular, nonprofits with many full-time employees may benefit most from the product’s HR management modules, which can assist with payroll, time tracking, tax management and HR policies. Each plan can be customized with other a la carte modules that address areas like budget development, payment portals and grants management.
Pros
- Built specifically for nonprofits and government agencies.
- Fund accounting features for tracking how donations and grants are used.
- Built-in human resources management system for payroll, benefits, time tracking and more.
- Web payment module lets you accept donations online.
Cons
- Lack of pricing transparency.
Our pick for
Overall nonprofit accounting software
Aplos
Starting at
$79/month
Additional pricing tiers (per month): $99, $189.
Promotion
15-day free trial
Aplos is a nonprofit and church management software solution that allows your organization to easily track finances, manage operations and engage members and donors. The accounting tools help you stay on top of donation restrictions to ensure funds are spent on time and in the correct manner, generate relevant reports and financial statements, create invoices and receive payments and more. In addition to donor database and accounting features, the cloud-based software also includes tools for event management, website building and mass communications.
Pros
- Designed for nonprofits and churches.
- Tools to build and host your website, plus the ability to accept online donations and tithes.
- Donor database collects information like giving history and lets you create groups.
- Fund accounting features for tracking how gifts, grants and donations are used.
Cons
- Accounting features like budgeting and recurring transactions require a plan upgrade.
NerdWallet’s picks for the best nonprofit accounting software
Aplos: Best overall nonprofit accounting software
Price:
- $79 per month for the Aplos Lite plan.
- $99 per month for the Aplos Core plan.
- $189 and up per month for the Advanced plan.
Why we like it: From its advent, Aplos software was designed for nonprofits and faith-based organizations. That means it comes with a wealth of features particular to the nonprofit sector, including customizable chart of accounts; fund tracking to efficiently keep tabs on grants and donations; a variety of reports to track accountability, such as fund-based balance sheets and income statements as well as contribution statements; as well as tools designed to encourage giving and track donations. With robust accounting features; tools related to fundraising, marketing and CRM; and optional add-on products for soliciting and receiving donations by text message, payroll and online bill payment, Aplos is a complete accounting and nonprofit management software solution.
Xero: Best scalable accounting software for nonprofits
Price:
- $15 for the Early plan.
- $42 for the Growing plan.
- $78 for the Established plan.
Why we like it: With more than 20 not-for-profit app integrations available, Xero is a user-friendly, scalable, cloud-based accounting software that can be customized to fit the needs of your nonprofit organization. Need to manage a membership base? Connect Xero with MembershipWorks. Need to track donations? You can link your Xero account to Infoodle for seamless donor communication and analysis. Read our complete Xero Accounting review.
QuickBooks Enterprise: Best enterprise nonprofit accounting software
Price:
- $1,410 per year for the Silver plan.
- $1,830 per year for the Gold plan.
- $2,250 per year for the Platinum plan.
- $4,400 per year for the Diamond plan.
Why we like it: QuickBooks Enterprise is a general accounting solution, but it still includes certain industry-specific features, like a nonprofit chart of accounts that shows your organization’s assets, expenses and revenue from both donations and retail sales. At tax time, you can easily transfer your data to the relevant IRS forms. Customizable reports allow you to manage budgets for various programs, view contributions by donor and track top-tier donors. QuickBooks Enterprise is desktop software, but users can pay more for cloud access. Read our review of QuickBooks Enterprise.
AccuFund: Best HR management features
Price: Quote-based.
Why we like it: If you run a more established nonprofit with a large employee base, then you may need software to help you manage not only your organization’s finances but your employees as well. AccuFund’s core software includes general accounting functions such as bank reconciliation, a general ledger, financial reporting and dashboards and accounts payable. Additionally, AccuFund offers add-on modules and products to round out the solution you need for your particular nonprofit. The company’s robust HR management product includes payroll, tax management, time tracking, employee self-service portal and additional tools.
Sage Intacct: Best for nonprofit accounting automation tools
Price: Quote-based.
Why we like it: The more you can automate your accounting tasks and business workflows, the more time you and your staff can dedicate to doing good in the world. Sage Intacct’s software comes with a number of automation features to simplify your nonprofit accounting and reporting, including an AI-powered general ledger and a revenue recognition tool that’s built to save you time and ensure your organization remains compliant. You may also appreciate Sage Intacct’s reporting and insights capabilities, in particular the digital board book the software can generate to visualize and present your organization’s impact and financial health to interested parties. Read our full Sage Intacct review.
Wave: Best free accounting software for nonprofits
Price: $0.
Why we like it: Free accounting software may be especially enticing to newer nonprofits; it will allow you to put your limited funds to work where they can have the most impact. With Wave’s free accounting software, you can enjoy unlimited expense tracking among unlimited users, access to standard accounting reports such as a profit and loss statement and balance sheet, automatic bank transaction syncs, and a customizable chart of accounts so you can track industry-specific accounts such as grants and donations, special events and in-kind contributions. Through Zapier, you can integrate Wave Accounting with dozens of third-party apps to fill the inevitable gaps you’ll encounter when using free software. Read our full Wave Accounting review.
What is nonprofit accounting software?
Accounting software designed specifically for the nonprofit sector will handle general accounting functions — such as a general ledger, chart of accounts, profit and loss statements, balance sheets and other financial management tools — in addition to fund accounting, donation tracking and reporting on functional expenses, among others.
These more industry-specific features help to ensure that your organization remains accountable to its mission and board, accurately files Form 990 and other necessary tax forms, attracts and manages regular communications with donors and remains compliant with established nonprofit accounting standards.
How to choose nonprofit accounting software
When choosing nonprofit accounting software, you’ll want to identify the obstacles blocking your work. Then, look for features that can push those roadblocks aside.
That might be robust CRM functions that let you track, analyze and engage a large donor or membership base. Or maybe you need a way to easily accept online donations and some basic accounting functions.
Here are a few other features to look for:
- The ability to budget by fund, project and/or tag.
- Automated reporting for IRS Form 990.
- Grant management features to meet time and use restrictions.
Balance the features you need alongside your budget and whether the software checks other boxes, like scalability and ease of use, to choose the best accounting software for your organization.
» MORE: Best grants for nonprofits
Last updated on November 6, 2023
Methodology
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. Ratings are based on weighted averages of scores in several categories, including range of features, cost, ease of use, accounting standards compliance, scalability, ease of sharing with accountants, integrations, customer support, pricing transparency and availability of a free trial period. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. Simplicity doesn't always translate into ease of use. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
