7 Best Free Nonprofit Accounting Software

Nonprofit organizations often face unique financial challenges, needing to track donations, grants and other sources of income with transparency and accuracy. However, purchasing accounting software or hiring full-time accountants can be costly, especially for nonprofits operating on tight budgets. Thankfully, there are plenty of free nonprofit accounting software options designed specifically for these organizations.

In this article, we’ll look at some of the best free bookkeeping software for nonprofits, break down their key features and help you decide which one is right for your organization.

What Is Nonprofit Accounting Software?

Nonprofit accounting software helps organizations manage their financial records, track donations and handle other critical tasks such as budget management and reporting. Unlike software built for for-profit businesses, these software solutions are specifically tailored to track restricted funds, manage grants and provide the level of transparency required by donors, boards and regulatory bodies.

Managing money at a nonprofit involves more than just recording income and expenses. Organizations need to ensure that donations are allocated to their intended purpose, that grants are tracked separately from general funds and that financial reports meet the standards of nonprofit auditing bodies. Additionally, many nonprofits have multiple revenue streams, such as donations, grants, membership dues and fundraising events. Having the right software in place to monitor and report on these different sources of income is essential to the organization’s financial health.

This complexity makes it crucial for nonprofit organizations to use accounting software designed to meet their needs. Free nonprofit accounting software simplifies many of these tasks, helping organizations manage their finances effectively and stay compliant with necessary reporting standards.

Features To Look for in Nonprofit Accounting Software

When selecting free accounting software for nonprofits, consider the specific features that will benefit your organization. Here are a few features you might want to prioritize:

1. Fund accounting: Tracking income and expenses by fund is key for nonprofits, as many rely on restricted funds like grants, which must be spent on specific projects or activities. Fund accounting features allow organizations to categorize income and expenses by each fund, ensuring that money is used correctly and reported properly.
2. Donation tracking: Managing donations is one of the most critical functions for nonprofit organizations. Donation tracking features help you organize contributions by donor, type of donation or specific campaign, making it easier to manage donor relationships, send thank-you notes and generate reports on how donations are being used.
3. Expense management: Keeping track of where your organization’s money is going is critical to maintaining financial transparency and accountability. Expense management tools allow you to categorize spending, monitor budgets and generate reports that can be shared with your board of directors or auditors.
4. Reporting tools: Nonprofits often need to create detailed financial reports for boards, donors and regulators. Look for software that provides customizable reports for your specific needs, such as statements of financial position, income statements and reports on how specific funds are being used.
5. Budgeting capabilities: A well-maintained budget is vital for any nonprofit, ensuring that funds are spent according to the organization’s goals and resources. Accounting software with budgeting tools helps you plan your spending and keep track of how well you’re sticking to your budget.
6. User-friendly design: Many nonprofits rely on volunteers or staff without formal accounting backgrounds. A simple, intuitive design is essential for anyone in your organization to use the software without extensive training.
7. Software integration: If your nonprofit uses other software for managing donations, memberships or events, you should aim to find accounting software that integrates with these systems. This can streamline processes and reduce the need for double entry of data.

7 Free Accounting Software for Nonprofits

1) ZipBooks

ZipBooks is a user-friendly option for nonprofits looking for simple accounting solutions. Its free plan includes basic accounting features like invoicing, expense tracking and financial reporting. While an excellent choice for smaller nonprofits, it may not have all the advanced features that larger organizations need.

Key Features:

• Basic invoicing and expense tracking
• Financial reporting
• Integration with popular payment platforms
• Collaboration tools for team members

ZipBooks also offers color-coded reports and simple graphs, which make it easier for non-accountants to get an overview of financial performance. This can be helpful for nonprofits that want a quick, visual understanding of their financial status without digging through complicated spreadsheets or reports.

2) Wave

Wave is widely known as one of the most robust free accounting software solutions, ideal for small and mid-sized nonprofits. It allows users to track income and expenses, invoice donors or clients and run financial reports. Unlike some of its competitors, Wave doesn’t charge for features like invoicing or financial tracking.

Key Features:

• Double-entry accounting
• Donation tracking through manual entries
• Automatic bank transaction uploads
• Financial reports, including balance sheets and income statements

One of Wave’s standout features is its ability to automatically import transactions from your nonprofit’s bank account, which helps keep everything up to date without manual data entry — saving time and reducing the chance of errors. In addition, Wave offers receipt scanning, which can simplify expense tracking by digitizing receipts and linking them to transactions.

3) MoneyMinder

MoneyMinder is specifically built for nonprofits, which makes it an attractive option for organizations that manage volunteers, donors and membership programs. It offers many nonprofit-specific features, including fund accounting and tracking donations, making it a handy tool for managing various aspects of nonprofit finance.

Key Features:

• Fund accounting for restricted funds
• Donor and member tracking
• Customizable financial reports
• Budgeting tools
• Automated payment reminders

MoneyMinder’s focus on budgeting tools and fund accounting makes it particularly valuable for organizations that need to closely monitor how specific funds are being used. Its automated reminders for payments and renewals are also useful for nonprofits managing large membership bases or recurring donors, helping to keep everyone on track without additional administrative burden.

4) Zoho Books

Zoho Books is another reliable free accounting software for nonprofits. While initially designed for small businesses, it works well for nonprofits needing an easy-to-use platform with core accounting features. It can handle everything from expense tracking to financial reporting, and it integrates well with other Zoho products, making it useful for nonprofits that already use Zoho tools.

Key Features:

• Comprehensive accounting tools, such as invoicing, expense tracking and bank reconciliation)
• Detailed reporting capabilities
• Automatic bank feeds
• Integration with other Zoho products

One of the biggest strengths of Zoho Books is its ability to integrate seamlessly with Zoho’s other products, like CRM, project management and email marketing tools. For nonprofits already using Zoho for donor management or other tasks, Zoho Books can bring accounting into the same system, reducing the need for switching between different platforms.

5) GnuCash

GnuCash is a free, open-source accounting software supporting personal and small business accounting. While it’s not specifically designed for nonprofits, it has the flexibility to be used by organizations that need powerful accounting tools. GnuCash’s robust features make it ideal for nonprofits with a deeper understanding of accounting and needing more detailed control over their finances.

Key Features:

• Double-entry accounting
• Fund accounting options
• Budget tracking and management
• Comprehensive financial reporting
• Multi-currency support

GnuCash allows for deep customization of accounting practices, making it a versatile tool for organizations with more complex financial needs. However, its flexibility may also require users to have a solid understanding of accounting principles, as the software doesn’t provide the same user-friendly interface found in other options like Wave or ZipBooks.

6) Springly

Springly is a management software designed specifically for nonprofits, offering free accounting tools along with other features for nonprofit management. This platform allows nonprofits to manage accounting alongside memberships, donations and events, making it a comprehensive tool for organizations that need to handle multiple aspects of their operations in one place.

Key Features:

• Fund and membership accounting
• Online donation management and tracking
• Event management capabilities
• Membership communication tools
• Integration with payment processors

Springly offers an all-in-one solution for nonprofits, which can simplify workflows by keeping accounting, membership and event management under one roof. This can be especially useful for organizations that rely heavily on fundraising events or membership dues as a significant source of revenue.

7) Adminsoft Accounts

Adminsoft Accounts offers one of the most comprehensive sets of free accounting features available. Though it can handle advanced accounting tasks like payroll and stock control, Adminsoft Accounts is still free to use (and claims it will be forever!), making it one of the best choices for larger nonprofits or those with more complex financial needs.

Key Features:

• Full double-entry accounting system
• Invoicing, payroll and stock control
• Fund accounting for nonprofit needs
• Budget tracking and customizable financial reports
• Supports multiple users

Adminsoft Accounts offers uncommon features in most free accounting software, such as payroll management and stock control, making it an excellent option for organizations with more advanced needs. The ability to support multiple users — and even various companies — also allows teams to collaborate more effectively, even in larger organizations.

Picking the Right Accounting Software for Your Nonprofit

When deciding which free bookkeeping software for your nonprofit is the best fit, consider the size of your organization and the complexity of your accounting needs. Smaller nonprofits or those just starting out may find Wave or ZipBooks suitable for handling basic accounting tasks. At the same time, larger organizations or those managing more detailed finances might benefit from Adminsoft Accounts or GnuCash.

For nonprofits that require software to handle accounting as well as other operational needs like event management or member communication, Springly or MoneyMinder can provide a more holistic solution. It’s also worth considering whether the software integrates well with any other tools you already use. Streamlining processes through integration with other platforms can save valuable time and reduce errors.

Ultimately, the best free nonprofit accounting software is one that meets your organization’s current needs while offering room to grow. With these tools, you can better manage your finances and focus on what matters most: your mission.