Best Accounting Software for Nonprofits: 2025 Edition

Imagine turning financial management from a tedious task to one of your business’s most important advantages. With the help of nonprofit accounting software that you can. From tracking of restricted funds to creating board-ready reports, the appropriate accounting software for nonprofits can make a big impact for all organizations of all sizes. It’s time to simplify your bookkeeping processes so that you can concentrate on what’s important: your cause and the communities that you serve.

What Is Nonprofit Accounting Software?

Nonprofit accounting software is special software for managing finances. Also referred to as accounting software for nonprofit organizations and NPO accounting programs. These applications were specifically created to serve foundations, charities, and other tax-exempt entities.

Accounting software for nonprofits offers special features that 501(c)(3) organizations require, such as grants tracking, fund accounting, donor and membership management. They do not just handle the basics of bookkeeping, but they also help with compliance by providing specific reporting tools that standard business software might not include.

What is Profit vs. Nonprofit Accounting Software

What exactly differentiates accounting software used for profit vs. nonprofit use? The two kinds share many core functions such as accounts payable, receivable management, and general bookkeeping. But for-profit accounting systems typically focus more heavily on analyzing revenue, expenditures, and profit margins to assess operational effectiveness and protect shareholders’ interests.

Accounting software for nonprofits, however, is focused less on making money and more on reporting, tracking, and compliance. This means that they treat money that comes in as resources to be managed in accordance with donor intentions rather than that which generates profits. Accounting software for nonprofit organizations may also come with built-in tools to assist in making receipts for donations and tracking pledges, and monitoring the performance of fundraising campaigns.

Also read: How to Find the Right Accounting Software for Your Business

Free vs. Paid Accounting Software for Nonprofits

The free accounting software for nonprofits is a popular choice for many organizations. Since nonprofits usually have very limited resources. Free software is great for small non-profits. But it has limitations. Free software may limit the number of transactions you can make or restrict access to users, or limit the number of integrations you can create using other platforms.

Paid accounting software for nonprofit organizations often features advanced functionality such as automatic reconciliation, tailored reporting, and integration with fundraising platforms and other applications. An investment in accounting software will pay dividends through increased efficiency, reduced errors, and greater financial insights. Smaller nonprofits may start using free software, but most organizations will eventually surpass these tools.

Key Features to Look for in Nonprofit Accounting Software

When you are looking for accounting software for nonprofits, a few characteristics make a difference. The best accounting software for nonprofits seamlessly integrates with other software and comes with the following features.

Incorporation into Fundraising Platforms

Every nonprofit software should integrate seamlessly with your fundraising platform, but accounting tools integration should take precedence. A smooth connection reduces duplicate data entry, reduces errors, and gives an accurate snapshot of your finances. When combined, donations automatically integrate into accounts with appropriate codes identifying programs, funds, or restrictions attached.

Fund Accounting Capabilities

Fund accounting is the backbone of accounting software for nonprofits, which allows you to monitor funds according to the donor’s restrictions and purpose to stop the money you have restricted from being wasted on unapproved uses. The software you choose to use should allow you to set up separate funds to serve different objectives, give you a complete overview of your financial situation, and assist you in creating reports that show how each fund is being managed properly.

Donor Management Tools

Many nonprofits use CRM (customer relationship management) platforms, but keeping track of donor data directly inside your accounting software speeds up donation processing to the next level. Find software that stores not only basic contact information but also a history of gifts, along with communication preferences and notes on relationships. The best accounting software designed for non-profits allows for the segmentation of donors according to their giving patterns and flag supporters who have not been able to give a follow-up, and monitor pledges up to the point they are fulfilled.

Donor Reporting and Compliance Tools

The capability to design custom reports that are tailored to your particular requirements makes a significant impact on the financial management of nonprofits. Nonprofit accounting software should have various reports that allow you to analyze the data according to fund programs, time periods or the donor segment. Reports must also be simple to customize for various types of audiences, such as comprehensive breakdowns of board meetings, simple summaries for staff updates, and standardized statements to meet the grant application process.

Usability for Non-Financial Staff

Many nonprofits work in small teams. Bookkeeping and accounting software for nonprofits must be available to team members without financial backgrounds, who may have to input expenses or look up budgets. Simple interfaces that are user-friendly with easy navigation and different levels of access allow staff members to communicate only with the data they require.

Best Nonprofit Accounting Software

Selecting the right accounting software for nonprofits organizations can drastically enhance your budgeting. Let’s take a look at the top accounting software for nonprofits to help you in choosing the most suitable solution for your needs.

1. QuickBooks

QuickBooks for Nonprofits adapts the well-known small-business platform to become an accounting software for non-profit organizations with special features designed specifically for charities. It allows you to track grants and donations separately from other income sources, build custom reports, and create budgets based on the program for more efficient resource allocation.

QuickBooks and Donately work seamlessly together, seamlessly incorporating donor information directly into financial reports. Furthermore, QuickBooks’ user interface is widely recognized and intuitive, which simplifies training employees more quickly and easily.

Pros:

• Nonprofit customization available (track programs, grants, and donors)
• Easy integration with fundraising and CRM tools
• Widely known by accountants, reducing training needs
• Cloud access and strong reporting features

Cons:

• Setup for nonprofit use may require customization
• Cost increases with more users and features
• Limited donor management compared to specialized tools

Pricing: Starts at $38/month

2. Blackbaud

Blackbaud offers financial management and accounting software for nonprofits. It allows you to track and report on transactions based on net asset class, ensuring the compliance of your organization, while also maintaining an orderly account structure that reflects grant, the grant, program department, and grant details.

The platform is equipped with robust management tools ranging from access rights that are specific to each user to approval control tools that help protect your financial data and allow you to demonstrate an appropriate stewardship of the funds you contribute. Blackbaud also works with Donately to create an unidirectional flow of information throughout your company.

Pros:

• Specifically designed for nonprofit and fund accounting
• Excellent reporting and data analytics capabilities
• Supports grant management and restricted fund tracking
• Scales easily for larger, complex organizations

Cons:

• Expensive compared to smaller software
• Steeper learning curve and longer implementation
• Limited integrations outside the Blackbaud ecosystem

Pricing: Custom pricing

Also read: Top 10 Invoicing & Accounting Tools For Freelancers

3. Aplos

Aplos is a cloud-based accounting software for nonprofits such as churches, churches, and other tax-exempt organizations. The platform blends fundraising and donor management within one system and eliminates the requirement to manage different databases and manually move data between different programs.

Aplos provides budgeting tools that are easy to use that allowing you to plan through programs or funds and then monitor your actual performance against these budgets throughout the year. The program also has templates for compliance and reporting that are built in, making it an excellent accounting software for small nonprofits that do not have dedicated finance departments.

Pros:

• Designed specifically for nonprofits and churches
• Easy-to-use interface for non-accountants
• Built-in fund accounting and donor tracking
• Cloud-based with online donation features

Cons:

• Limited advanced features for larger organizations
• Integrations are fewer compared to QuickBooks
• Costs rise as you add users or modules

Pricing: Starts at $79/month

4. Wave

Wave is a small-business accounting software for nonprofits with minimal financial requirements. Wave manages expense and income tracking, financial reporting, and invoice generation without monthly charges, which makes it an excellent accounting software that’s budget-friendly for smaller non-profits.

The simple interface of Wave requires no instruction, which means that volunteers are able to handle basic bookkeeping tasks without having any special knowledge. But Wave doesn’t have a specific design for non-profits, and does not have features such as fund accounting and built-in third-party integrations. However, in terms of free accounting software for nonprofit organizations, it’s a winner.

Pros:

• Free or very affordable
• Simple, beginner-friendly interface
• Cloud-based and easy to access

Cons:

• Lacks fund accounting and donor management features
• Limited integrations and reporting
• Basic support options

Pricing: Free and Pro plan at $16/month

Wrap Up

Choosing the right accounting tool can make a huge difference in the way your nonprofit handles its financials and relations. A good accounting software for nonprofits helps your team avoid the tedious task of entering data manually and complicated spreadsheets, allowing you to have the time to concentrate on the mission of your organization.

Our team also works with the top accounting software for nonprofits, such as QuickBooks and Blackbaud. Our custom API allows you to connect with almost any software

People Also Ask