Asset 20 8 2
Does AI recommend your business? Run the free check →

Join 15,000 business owners, marketers and entrepreneurs. The Sunday newsletter you'll be annoyed only arrives once a week.

Article

Best Accounting Software for Nonprofits (2026): 10 Compared

The best accounting software for nonprofits tracks money by fund, grant and restriction, not just by account, and produces the reports your board, funders and regulators expect. Small groups can manage with simple accounting tools, while larger organisations usually need true fund accounting. This page lists ten in no particular order, then explains how to choose.

Nonprofit accounting looks like business accounting until a funder asks how their grant was spent. Then you need to show money coming in with conditions attached and going out against those conditions, which is where ordinary small-business software starts to creak.

These are ten accounting tools in no particular order, sorted alphabetically, from fund accounting systems built for nonprofits to simple tools for clubs and small charities. Each description comes from the provider's own website, re-checked today. For a plain-English view of restricted money, my piece on how grant money moves through a nonprofit is a good primer.

Nonprofit accounting software at a glance

In the free plan column, Yes means the provider's own site describes a free plan or free edition, Trial only means a time-limited trial, and No means the site points to a demo or quote instead.

ToolTypeGood forFree plan
AkauntingOpen source accountingVery small groupsYes
AplosNonprofit accountingSmall and mid-sized nonprofitsTrial only
Financial Edge NXTFund accounting platformLarger organisationsNo
Fund E-ZFund accounting softwareGrant-heavy organisationsTrial only
MIP Fund AccountingFund accounting softwareGovernment and nonprofit finance teamsNo
MoneyMinderNonprofit accountingVolunteer-run groupsTrial only
QuickBooksSmall-business accountingNonprofits with an accountant on itTrial only
Sage IntacctCloud financial managementMulti-entity nonprofitsNo
XeroSmall-business accountingSmall charities wanting cloud booksTrial only
Zoho BooksSmall-business accountingStarting on a free planYes

Ten accounting tools for nonprofits

Akaunting

Best for: Very small groups that want free, open source accounting they can run online or host themselves.

Aplos

Best for: Small and mid-sized nonprofits and churches that want fund accounting with donor and giving tools.

Financial Edge NXT

Best for: Larger nonprofits that need full fund accounting, forecasting and reporting alongside other fundraising systems.

Fund E-Z

Best for: Grant-funded organisations that need fund accounting with add-on modules such as fundraising and fixed assets.

MIP Fund Accounting

Best for: Finance teams in nonprofits and public bodies that need detailed fund accounting, in the cloud or on premise.

MoneyMinder

Best for: Volunteer-run groups such as PTAs, booster clubs and small charities that want simple, compliant books.

QuickBooks

Best for: Small nonprofits whose bookkeeper already knows it and can track funds with classes or tags.

Sage Intacct

Best for: Growing nonprofits with several entities or programmes that need advanced reporting and dimensions.

Xero

Best for: Small charities that want cloud accounting, bank feeds and an accountant who can log in.

Zoho Books

Best for: Very small organisations that want to start on a free plan and track projects alongside the books.

The disclosure rule that makes clean books matter

Here's something that surprises new trustees and treasurers. The IRS says tax-exempt organisations must make their annual returns and exemption applications filed with it available for public inspection and copying on request, and the IRS makes these documents available too. Your yearly return isn't private paperwork; donors, journalists and grant makers can read it.

Work with me

Want AI doing the heavy lifting in your marketing?

I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.

That's a strong reason to choose software that categorises spending cleanly by programme, management and fundraising from the start. Rebuilding a year of muddled transactions the week before the return is due is miserable, and the result is public.

Fund accounting or simple accounting

Simple accounting tools track income and spending by account. Fund accounting adds another layer: every transaction also belongs to a fund, such as a specific grant or a restricted donation, so you can report on each one separately. If you hold restricted grants, or funders ask for spend reports, you'll want true fund accounting or very disciplined use of classes and tags.

Choosing nonprofit accounting software in five steps

  1. List every fund, grant and restricted gift you hold today.
  2. Write down the reports your board and funders ask for.
  3. Ask your accountant or auditor which systems they work with.
  4. Check how donations will flow in from your giving or CRM tool.
  5. Run one month of real transactions on a trial before you switch.

Nonprofit bookkeeping habits that save audits

  • Record restrictions when money arrives. It's much harder to work out later.
  • Reconcile monthly. Small gaps become big mysteries by year end.
  • Keep receipts with transactions. Attach them in the software where you can.
  • Separate duties. The person approving spend shouldn't be the only one recording it.

Questions to ask a nonprofit accounting provider

  • Can it report on each grant on its own? Funders will ask, so you'll want it in one click.
  • How does it handle restricted gifts? Ask to see a restricted donation from receipt to spend.
  • Who can approve and who can record? Good permissions protect volunteers as well as funds.
  • What does year end look like? Ask how it helps with the reports your accountant needs.

If you want a broader view of business accounting tools, my list of accounting software tools covers the general options. It's useful if your nonprofit also runs a trading arm or a small shop.

Do you make accounting software for nonprofits? Tool makers can ask to be considered for a featured place on this list.

My plain advice on nonprofit accounting software

If you're a small, volunteer-run group with little restricted money, a simple tool with tidy categories is enough. Once you hold several grants with conditions, move to fund accounting before the reporting becomes a weekend job every quarter.

And involve your accountant or auditor before you choose. The software they can work with quickly will save you more time than any feature on the list.

Frequently asked questions

What is fund accounting?

A way of tracking money by fund, such as a grant or restricted gift, as well as by account, so you can report on each fund separately.

Can a nonprofit use QuickBooks or Xero?

Many small nonprofits do, tracking funds with classes, tags or tracking categories. Larger or grant-heavy organisations often outgrow that.

Is there free accounting software for nonprofits?

Some tools describe a free plan or free open source edition, which can suit very small groups.

Are a nonprofit's tax returns public?

In the US, the IRS says tax-exempt organisations must make annual returns and exemption applications available for public inspection on request.

What reports do nonprofits need from accounting software?

Usually income and spending by fund, statements by programme, and the reports funders and your board request.

Should volunteers have access to the accounts?

Give each person only the access they need, and keep approval of payments separate from recording them.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
Your buyers are asking AI who to use. Does it say you?

See for free whether ChatGPT, Claude, Perplexity, Gemini and Google name you, and get the plan to become the answer.

Check my AI visibility →
Sundays only

Get the Sunday newsletter.

One email a week. AI experiments, marketing tactics, and the workflows Lilach is building right now in her own business.

Subscribe free

Let’s get your marketing running on AI.

Book a free 30-minute call

We figure out what you need, where AI fits in, and what working together would look like.

Book the call →

Or take the 30-second calculator

You’ll see the hours and the money quietly leaking out of your week, and the three workflows worth building first.

Take the calculator →

Or grab the free AI resource library

Prompt packs, templates, checklists, and swipe files. The exact tools I build for paying clients. Yours, free.

Get the library →
Keep reading

More from the blog.