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Introduction
Welcome to our comprehensive guide on not for profit accounting software. In this article, we will explore everything you need to know about not for profit accounting software, its features and benefits, as well as its role in the not for profit industry.
According to the National Council of Nonprofits, non-profits contribute to the economy by providing millions of jobs and goods and services that enhance our quality of life. However, managing the finances of a not for profit organization can be a daunting task without the right tools. This is where not for profit accounting software comes in.
In this article, we will explore the best not for profit accounting software options on the market, their features, and benefits, as well as frequently asked questions about not for profit accounting software.
What is Not For Profit Accounting Software?
Not for profit accounting software is designed to help not for profit organizations manage their finances effectively. It allows organizations to track expenses, donations, grants, and budgets, as well as generate financial reports that comply with accounting standards.
Some of the key features of not for profit accounting software include accounts payable and receivable management, tax management, donation tracking and management, fund tracking, budgeting, and financial reporting.
Accounts Payable and Receivable Management
Not for profit accounting software allows organizations to manage their accounts payable and receivable effectively. It enables organizations to track their outstanding invoices, vendor payments, and payments due to them.
With not for profit accounting software, organizations can also manage their cash inflows and outflows effectively. It enables them to track the money they receive from donors, sponsors, and grants, as well as the money they spend on salaries, program expenses, and operational expenses.
Tax Management
Not for profit organizations are exempt from paying federal taxes, but they are still required to file tax returns with the IRS. Not for profit accounting software can help organizations manage their tax-related tasks effectively.
It enables organizations to track their tax-exempt status, generate the necessary tax forms, and maintain compliance with federal and state tax laws.
Donation Tracking and Management
Donations are the lifeblood of not for profit organizations. Not for profit accounting software enables organizations to track donations effectively.
It allows organizations to track individual donations, recurring donations, grants, and donations from corporate sponsors. Not for profit accounting software can also generate donation receipts automatically, ensuring that organizations comply with IRS rules and regulations.
Fund Tracking
Not for profit organizations often manage multiple funds, each dedicated to a particular program or project. Not for profit accounting software enables organizations to track their funds effectively.
It allows organizations to track the use of their funds, generate reports that show how funds are being used, and ensure that funds are being allocated appropriately.
Budgeting
Budgeting is an essential aspect of managing the finances of not for profit organizations. Not for profit accounting software enables organizations to create budgets and track their actual expenses against their budgeted amounts.
It allows organizations to monitor their spending throughout the year, enabling them to identify areas where they can cut costs or allocate additional resources.
Financial Reporting
Not for profit organizations are required to generate financial reports that comply with accounting standards. Not for profit accounting software makes generating financial reports easy.
It enables organizations to generate reports such as income statements, balance sheets, and cash flow statements, ensuring that they have the necessary financial information to make informed decisions.
Not for Profit Accounting Software Options
Software |
Key Features |
Pricing |
|---|---|---|
QuickBooks Nonprofit |
Donation management, fund accounting, grant management, budgeting, financial reporting |
$70/month |
Aplos |
Donation management, accounting, fund accounting, contribution statements, automatic receipting, donor management |
$59/month |
Blackbaud Financial Edge NXT |
General ledger, accounts payable and receivable, cash and bank management, financial reporting, grant management |
Contact vendor for pricing |
Bloomerang |
Donor management, fundraising, engagement, accounting, reporting, analytics |
$99/month |
Denali FUND |
General ledger, accounts payable and receivable, donation management, grant management, financial reporting |
$499/one-time fee |
Frequently Asked Questions
What is the difference between for-profit accounting software and not for profit accounting software?
The primary difference between for-profit accounting software and not for profit accounting software is the way they handle donations and grants. Not for profit accounting software is designed to track donations and grants, as well as maintain compliance with accounting standards.
Can not for profit accounting software generate donation receipts automatically?
Yes, not for profit accounting software can generate donation receipts automatically, ensuring that organizations comply with IRS rules and regulations.
Do all not for profit accounting software options include grant management features?
No, not all not for profit accounting software options include grant management features.
How much does not for profit accounting software cost?
The cost of not for profit accounting software varies depending on the vendor and the features included. Some vendors offer pricing plans starting at $59/month, while others require a one-time fee of $499.
Is not for profit accounting software easy to use?
Yes, not for profit accounting software is designed to be user-friendly, with intuitive interfaces and easy-to-understand features.
Can not for profit accounting software help organizations maintain compliance with federal and state tax laws?
Yes, not for profit accounting software can help organizations maintain compliance with federal and state tax laws by generating the necessary tax forms and tracking tax-exempt status.
Can not for profit accounting software help organizations track multiple funds?
Yes, not for profit accounting software can help organizations track multiple funds, enabling them to allocate resources effectively.
Are there any free not for profit accounting software options available?
Yes, some vendors offer free not for profit accounting software options, but they often have limited features and functionality.
Can not for profit accounting software integrate with other financial management tools?
Yes, not for profit accounting software can integrate with other financial management tools, such as payment processors and payroll systems.
Can not for profit accounting software help organizations track expenses?
Yes, not for profit accounting software can help organizations track expenses, enabling them to monitor their spending and identify areas where they can cut costs.
Can not for profit accounting software generate financial reports?
Yes, not for profit accounting software can generate financial reports that comply with accounting standards, such as income statements, balance sheets, and cash flow statements.
Can not for profit accounting software help organizations manage their budgets?
Yes, not for profit accounting software can help organizations manage their budgets by allowing them to create budgets and track their actual expenses against their budgeted amounts.
Can not for profit accounting software help organizations manage their donation campaigns?
Yes, not for profit accounting software can help organizations manage their donation campaigns by enabling them to track individual donations, recurring donations, grants, and donations from corporate sponsors.
Can not for profit accounting software help organizations manage grants?
Yes, not for profit accounting software can help organizations manage grants by tracking grant budgets, generating reports, and tracking grant expenditures.
Conclusion
Not for profit accounting software is a powerful tool that can help organizations manage their finances effectively. From donation tracking to tax management, not for profit accounting software offers a comprehensive suite of features that are tailored to the unique needs of not for profit organizations.
Whether you’re a small non-profit just starting or a large organization with multiple programs, there’s a not for profit accounting software option that can help you manage your finances and comply with accounting standards.
We hope this guide has been informative and useful in helping you make an informed decision about not for profit accounting software.
Closing
Not for profit organizations play a vital role in our communities, and managing their finances effectively is critical to their long-term success. With the right not for profit accounting software, organizations can ensure that their finances are in order, enabling them to focus on their mission and make a positive impact.
If you’re looking for a not for profit accounting software option that can help you manage your finances effectively, be sure to explore the options we’ve highlighted in this guide.
Thank you for reading, and we wish you all the best in managing your not for profit organization’s finances!
