Tax Software for Non-Profit Organizations

Nonprofit organizations have different tax and finance needs than for-profits. Free accounting software products are available for nonprofits, with some featuring tax software. Tax software products are also available for nonprofit organizations from CPA firms who are experts in nonprofit finances. Hundreds of thousands of nonprofits have used these products over the years.

Nonprofits are always looking for ways to save money and ways to increase efficiency. Nonprofit treasurer software is one of the biggest ways in which you can do both. If there is one thing that is always top of mind for nonprofit organizations, it’s finding ways to keep expenses low and raise more money for their cause.

QuickBooks Enterprise Nonprofit

Many nonprofit organizations end up cobbling together accounting, donor management, and payroll services by using multiple programs, making things confusing during end-of-year reporting. QuickBooks Enterprise Nonprofit is our choice as the best overall accounting software for nonprofits because it is a full-service program that allows you to track your finances, manage your donor lists, and even pay your staff. Pros

  • Combines donation management, financial statements, and payroll services into one package
  • Online backup and protection of your QuickBooks data
  • Syncs with apps like Kindful

Cons

  • Free trial unavailable on Enterprise edition
  • You must pay an additional fee to get remote access
  • Adding users can quickly drive up the monthly cost

QuickBooks Enterprise Nonprofit is issued by Intuit, the financial services and tax software company. Intuit was founded in 1983. Since its launch, it has become a household name, earning over $7.7 billion in revenue in 2020. 

While there are cheaper versions of QuickBooks available for nonprofit organizations, we selected QuickBooks Enterprise Nonprofit because of its robustness. For large or growing organizations who need comprehensive accounting services, this program can be a good fit. 

You can use QuickBooks Enterprise Nonprofit to track expenses and donations, budget by program and compare to actuals, and create donor and grant reports. This version of QuickBooks allows you to accept donations and securely store donor information in your database. If you upgrade to the Gold, Platinum, or Diamond plans, you can even get payroll services for your organization and pay your staff directly through QuickBooks. 

QuickBooks integrates with several apps used by nonprofits including Kindful. If you use these apps as part of your fundraising campaigns, you can sync the data and import transaction details to streamline your reporting. 

While other versions of QuickBooks have free trials, QuickBooks Enterprise Nonprofit does not. This version starts at $1,275 per year, but the price can increase based on what additional services you need. For example, the Platinum plan costs $2,035 per year. 

The default version is only available via desktop, so employees cannot access it remotely. If you want to add cloud-based access, you’ll need to pay an additional fee for hosting for each user that will be using the program. For example, the cost for two users to remotely access the Diamond plan is $3,572.40. 

For smaller nonprofits or nonprofits who are just starting out, you probably don’t need software with as many features as QuickBooks Enterprise Nonprofit. For smaller organizations and charities with more basic accounting needs, QuickBooks has other plans that start at lower prices such $25 per month. 

ACCOUNTS from Software4Nonprofits

For small organizations like churches or community organizations, we selected ACCOUNTS as the best accounting software. It’s affordable and easy to use, with all of the necessary features you need to track income and expenses and create reports. Pros

  • 60-day free trial and 30-day money back guarantee
  • The standard version costs just $130 for the first year 
  • The program can be used for the accounting of multiple organizations (up to 5) at no additional cost

Cons

  • The desktop program can only be used on Windows
  • You have to purchase a separate donation program to track donors
  • Only one user can do data entry at a time with the standard version

ACCOUNTS through Software4Nonprofits is a program offered by Cooperstock Software, a small company based in Canada. The company was founded by the treasurer of a religious finance committee because he had difficulties finding software that met his needs. He created ACCOUNTS as an alternative to the more expensive and complex accounting programs available at the time. 

ACCOUNTS is an easy-to-use platform designed specifically for small organizations and churches who need basic bookkeeping and accounting services. The program allows you to track income and expenses, track fund balances, associate accounts with lines on your IRS tax forms, and create detailed reports. 

If you’re responsible for managing the accounting for multiple organizations, such as the school PTA and your child’s sports team, you can use the software to handle the accounting for both at no additional cost. 

The standard version of ACCOUNTS is $130 for the first year. After that, it costs $65 per year. You can try ACCOUNTS for free for 60 days, and you can download the free version online. ACCOUNTS also has a 30-day guarantee if you purchase the program. If you’re not satisfied with your purchase and no longer intend to use it, the company will give you a full refund. 

Unfortunately, ACCOUNTS was designed for Microsoft Windows and the desktop version is only available for that operating system. However, there is a cloud-based, browser version called OnDemand that works on most platforms including Mac. Under the standard version, only one user can do data entry at a time. If you upgrade to the local network version—which costs $220 for the first year—up to five users can access the database at once. 

If you want to track donations and donor information, you’ll need to purchase additional software. Cooperstock Software offers another program called DONATIONS, which is free if you have 100 donors or less per year. Larger organizations will need the paid version of DONATIONS. 

Financial Edge by Blackbaud

For large organizations that want enterprise-level accounting, Financial Edge is the clear choice. It integrates with Raiser’s Edge, a program of choice for donor and constituent management, and allows you to track expenses and budget across fiscal years. Pros

  • Cloud-based software that can be managed remotely
  • Integrates with Raiser’s Edge donor management software

Cons

  • Lack of pricing transparency on the site

Financial Edge is a product released by Blackbaud, a leading software company that caters to nonprofit organizations, educational institutions, and healthcare facilities. It serves millions of users in over a hundred countries worldwide. 

For large nonprofit organizations that have significant accounting needs as well as employees and a large donor-base, Financial Edge can be an excellent fit and it’s our top choice for large organizations.

Financial Edge is a cloud-based program, so you can use it from any laptop. You can use Financial Edge to create budgets, track expenses, manage cash flow, and handle the general ledger. It has expanded budgeting capabilities, so you can forecast different scenarios and budget across fiscal years. 

Financial Edge also integrates with Blackbaud’s Raiser’s Edge, the gold-standard program for donor management and fundraising, so you can make sure your organization’s efforts are cohesive.  

The pricing for Financial Edge was not readily available on the website, but Financial Edge has a 4.2-star rating on Capterra.

FastFund Online Nonprofit Fund Accounting

FastFund Online Nonprofit Fund Accounting is an all-in-one accounting, fundraising, and payroll software program. It was designed by nonprofit experts to meet the needs of nonprofit and small governmental agencies. 

There are four plans to choose from. The all-inclusive Premium plan starts at $94 per month and includes fund accounting, fundraising, and payroll tools all in one program. If you don’t need the all-inclusive option, you can purchase just the plans that you need. The fund accounting plan and fundraising plans both start at $42 per month, and the payroll plan starts at $66 per month. There is no setup fee, you can cancel anytime, and technical support is included in all four plans. 

We chose FastFund Online Nonprofit Fund Accounting as the best overall accounting software for nonprofits because it meets the accounting, fundraising, and payroll requirements at the best price, less than $100 per month.

Features of each of the plans offered by FastFund include:

Nonprofit Accounting Plan 

  • Customized chart of accounts
  • FASB-compliant financial statements
  • Reports to assist with completing IRS Form 990
  • Tracking of cash receipts and disbursements
  • Customized financial statements
  • Budgets

Nonprofit Fundraising Plan

  • Constituent management
  • Campaign management
  • Membership management
  • Cash, pledge, in-kind gift processing
  • Automated receipts
  • Pledge reminders
  • Customized reports

Nonprofit Payroll Plan 

  • Payroll payment options
  • Built-in payroll tax tables
  • Automatic payroll tax payments
  • Payroll tax filings
  • Customized reports

You can schedule a free one-hour demo to learn more about how the software works. Tech support includes access to free webinars and YouTube video tutorials, and you also can schedule a private training session for your staff at an hourly rate of $100.

Aplos

Since 2009, Aplos has provided an accounting software solution nonprofit organizations can rely on to keep track of donors, contributions, and fundraising events. 

Like most of the providers on our list, Aplos is a cloud-based program, which makes it compatible with any computer or mobile device with an Internet connection. We chose Aplos as the runner-up because it includes several features starting at $59 per month.

Aplos Features

  • Fund accounting
  • Donor management
  • Online donations
  • People database
  • Create and manage groups
  • Fundraising tools
  • Event registration
  • Website builder
  • Financial statements
  • Budget reports

Aplos also offers software customized to meet the needs of any church. The advanced accounting upgrade package starts at $159 per month. It includes budgeting by fund or tag; creating reports by project, campaign, or department; creating and sharing giving statements; tracking fixed assets; and a groups and team portal. If you have employees, you can add payroll with Gusto for an additional fee or, if you prefer to outsource your bookkeeping, Aplos offers bookkeeping services.

If you need help, Aplos has online tools as well as telephone, chat, and email support. Sign up for a free 15-day trial to take Aplos for a test drive. Finally, if you dread completing the IRS Form 990, you can purchase software from Aplos that will complete the form for you.

Conclusion:

More and more nonprofits are choosing to use accounting software in order to deal with the complexities of their financial accounting and reporting process. Free accounting software is another popular alternative where users can carry out their accounting processes at no cost.

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