The best budget software for nonprofits isn’t just a nice-to-have; it’s the foundation of every successful not-for-profit organization. Unlike traditional businesses, nonprofit organizations must plan every dollar carefully to ensure funds fuel their programs and meet donor expectations.
Nonetheless nonprofits face challenges when it comes to financial management. With limited budgets and a lean staff, these organizations juggle tracking donations, invoices and payroll—all under heightened scrutiny for transparency and accountability.
This is where nonprofit budgeting software proves to be invaluable.
In this article, we’ll walk you through:
- The top budgeting tools built for nonprofits
- Key features that can make your job easier
- Tips on choosing the software that actually fits your nonprofit organization
What Makes Budget Software for Nonprofits so Valuable?
Optimizing budget management enhances financial transparency and efficiency.
- These tools simplify financial planning and maximize limited resources by:
- Enhancing budget management
- Reducing manual work
- Increasing accuracy
Without automation, tasks like data entry, tracking restricted funds, and generating clear reports create complexity in making informed decisions and demonstrating responsible fund allocations.
What Should You Look For in Nonprofit Budgeting Software?
Now that we’ve established why nonprofit budgeting software is so important, we’ll move on to the must-have features to look for that address the particular needs of nonprofit financial management.
Fund Accounting Capabilities
Nonprofits rely on fund accounting to track income and expenses by specific funds or projects. A good system will let you manage restricted funds (such as grants or donor-designated gifts) separately to ensure money is spent on its intended purpose.
User-Friendly Financial Reporting
Look for easy-to-use dashboards and reporting tools that non-accountants can navigate. Many nonprofits have volunteers or program managers involved in budgeting, so the interface needs to be intuitive.
The software should generate standard nonprofit reports at the click of a button. Customizable, clear reports are crucial for communicating financial status to boards, donors, and regulators.
Integration with Other Software
Your budgeting tool should play nicely with the rest of your tech stack. Integration with accounting software and donor management or Customer Relationship Management (CRM) systems are particularly valuable.
Such integration ensures that donation data, expenses, and bank transactions flow automatically into your budget, reducing double data entry and errors.
Scalability
Choose a software that can grow with your nonprofit. A small charity today might manage a handful of grants, but in a few years, you could have multiple programs across different regions.
Scalable design means the software can handle an increasing volume of transactions, users, and complexity without missing a beat.
It’s better to pick a program that offers higher-tier plans or add-on modules for advanced capabilities than to outgrow your software and face a disruptive switch later.
Collaboration and Multi-User Access
Budgeting is a team sport for a lot of nonprofits—the finance director, program managers, grant managers, and executive team all need insight. Good budgeting software allows multiple users to access the system, ensuring the right people have the appropriate level of control and visibility.
Look for collaboration features like cloud access (so users can work from anywhere) and role-based security controls to define who can view or edit certain budgets.
Compliance and Security
Nonprofits must be ever-ready for audits, IRS Form 990 filings, and donor reporting.
Ensure the software supports compliance needs—for example, the ability to tag transactions to specific grants for grant reporting or produce FASB-compliant financial statements. Robust security is also non-negotiable when handling financial data.
The system must offer features like data encryption, regular backups, and audit trails, as well as role-based access to protect sensitive information. Top nonprofit finance tools often conform to standards like SOC 2 or GDPR for data protection.
7 Best Budget Software for Nonprofits
Now, let’s consider some of the best budgeting software for nonprofit organizations, both paid and free.
These picks offer a range of features tailored to nonprofits, from sophisticated fund accounting systems for large organizations to free budgeting tools for small charities.
1) Datarails
Datarails is a modern FP&A platform that stands out for its Excel-native interface and powerful budgeting automation.
For nonprofits that love Excel but struggle with its limitations, Datarails offers the best of both worlds: you can continue working in Excel spreadsheets as you always have, while Datarails runs in the background to automate and enhance the process.
Consequently, finance teams can keep their existing spreadsheet templates and formulas, reducing the learning curve, and eliminating the manual headaches of version control and consolidation.
In addition to the basic FinanceOS and budgeting solution, Datarails provides solutions such as:
- Connect – Real-time reporting tool for your Excel, ERP, CRM and HRIS.
- Cash Management – Connect your different bank accounts for cash visibility and management, and automate your cash reporting, positioning, and forecasting.
See examples of how nonprofits use Datarails here.
One of Datarails’ biggest strengths is budgeting automation.
Nonprofits often collect budgets from multiple departments or program managers; Datarails streamlines this by automatically consolidating all those Excel files into a single source of truth.
Pricing: Contact for pricing.
2) Sage Intacct
Sage Intacct is a cloud-based fund accounting and budgeting platform.
With it, you get expense tracking, detailed financial reporting, and advanced budgeting tools like forecasting and what-if scenario planning.
Pricing: Sage Intacct often offers custom quotes for nonprofits.
3) QuickBooks
Intuit’s QuickBooks is one of the most popular accounting solutions among nonprofits, marketed to help you “do more for others.”
QuickBooks offers nonprofit-specific features in its desktop Premier, Enterprise Nonprofit, and QuickBooks Online editions—including fund tracking, bank reconciliation, and program-based budgeting.
Quickbooks is a basic accounting and reporting software and usually fits best for small and medium sized businesses.
Pricing: See pricing.
4) Blackbaud Financial Edge NXT
Blackbaud Financial Edge NXT is known for its advanced fund accounting and reporting capabilities. This system shines at handling complex funding sources, grant management, and donor-related finances.
Nonprofits can create highly customizable reports tailored to board members, donors, or compliance needs.
Pricing: Request a personalized quote.
5) Wave Accounting
Wave is a free, cloud-based accounting software that’s well-suited for nonprofits with basic budgeting needs and small budgets. It supports tracking income and expenses, generating financial reports, and even includes unlimited invoicing—all at no cost.
Pricing: See pricing plans here.
6) Xero
Xero is a popular cloud accounting software that appeals to nonprofits for its ease of use and comprehensive features.
Xero’s Starter plan provides a low-cost option for small organizations and higher plans that accommodate growing needs. Notably, Xero offers a 25% discount for nonprofits, making it an appealing option.
Pricing: Plans start at $20/per month. Discounts are available for nonprofits.
7) GnuCash
GnuCash is a free, open-source accounting program that can work for nonprofits on a tight budget and willing to invest a bit of time in setup.
It isn’t tailor-made for nonprofits, but it’s a flexible option that includes many features for a free tool. GnuCash offers a double-entry accounting system that can handle multiple accounts, budgeting, and various financial reports.
It supports tracking of income and expenses across different accounts (for example, you could set up separate accounts to mimic funds or programs) and can generate detailed reports (such as balance sheets and profit and loss statements), which you can adapt for nonprofit needs.
Pricing: Free.
How to Choose the Best Budgeting Software for Your Nonprofit
So, what’s the right budgeting software for your nonprofit? Making this decision begins with balancing your organization’s needs with practical considerations like cost and support.
Here are some tips to guide your decision:
Consider Your Organization’s Size and Financial Complexity
What a small community charity needs in budgeting software will likely differ from the needs of a big international NGO. Take into account the volume of transactions you handle, the number of funding sources, and the expertise of your staff.
Choose software that fits your current operations but can also accommodate growth as you add more programs or donors.
Compare Features vs. Costs
Budget is unmistakably a determining factor for nonprofits. Free software can be very attractive—covering basic needs. However, consider the value of advanced features and the efficiencies a paid subscription offers.
Paid solutions often include time-saving automation, guaranteed customer support, and features specific to nonprofit reporting that free tools might lack.
Keep a list of must-have features and use it to see which free tools meet them. If none do, it is worth the investment of a discounted nonprofit plan from a vendor.
Look For Nonprofit-Specific Customization
Nonprofit accounting is different from for-profit accounting, so it helps when the software is tailored for nonprofits. This might mean having a preset nonprofit chart of accounts, the ability to tag transactions by fund or grant, or built-in reports for Form 990 or funder reporting.
Software built for nonprofits includes these features by default, but many general accounting software can be customized to support nonprofit financial management as well.
Review User Reviews And Support Availability
Watch out for common threads in complaints about things like features or customer service. Dependable customer support is crucial for getting the most out of the software and resolving issues quickly.
Ultimately, the best budgeting software for your nonprofit depends on finding a tool that meets your current financial management needs and can grow with you.
Find the Best Fit for Your Nonprofit
It’s time to improve your nonprofit’s budgeting process.
As for your next steps, start by making a shortlist of the software that seems to align with your needs, then reach out to those providers.
Many offer free trials, demos, or even special nonprofit discounts—as well as onboarding assistance. These are excellent opportunities to discover which interface and features feel most comfortable and useful.
Request a demo from Datarails today to discover how automation and smart budgeting software can transform your nonprofit’s financial management and help you put every dollar to work for your mission.
