Budget Software For Nonprofits is very difficult to find nowadays. So you run a nonprofit and want to make the most of your budget? You know that every dollar counts when you’re trying to make a difference, and budgeting tools can help ensure your funds are allocated properly. But with so many options out there, how do you choose? Don’t worry, we’ve got you covered.
We scoured the internet to find the best free and low-cost budgeting software for nonprofits so you can spend less time balancing spreadsheets and more time focused on your mission. Whether you need a simple expense tracker or full-scale financial planning software, there are great solutions that won’t break the bank. Keep reading to find the right budgeting tool for your nonprofit and tips to help you make the most of it. Now go out there and change the world!
Why Nonprofits Need Budgeting Software
Nonprofits operate on tight budgets and rely heavily on donations and grants to fund their missions. Budgeting software can help nonprofits better manage their limited resources and maximize the impact of every dollar.
Track Income and Expenses
Budgeting software allows nonprofits to log all income from donors, memberships, grants, and fundraising. Likewise, you can track expenses by category and program to gain insight into where the money is actually going. This helps identify areas where too much is being spent or where more funding is needed. With an accurate record of cash flow, nonprofits can make data-driven decisions on resource allocation.
Report Key Metrics
Most budgeting software can generate financial reports that provide a snapshot of the organization’s fiscal health. Reports may include income statements, balance sheets, cash flow statements, budget vs. actual, and key performance indicators (KPIs) like program efficiency or fundraising ROI. These reports allow leadership to monitor progress, spot potential issues, and make adjustments to ensure the budget remains balanced and programs are sustainable.
Forecast and Budget
Budgeting software uses the income, expense, and report data to help create realistic budgets and forecasts. Nonprofits can budget by program, by month or quarter, and build multi-year plans. Forecasting tools allow you to predict future cash flow, set fundraising targets, and ensure your budget aligns with strategic goals. With an accurate budget in place, nonprofits have a roadmap to guide operational and financial decisions.
Collaborate and Share
Most budgeting software is cloud-based, allowing multiple users to access and edit the budget. Department heads, program managers, accountants, and executives can all view and update the parts of the budget relevant to them. Permissions and approval workflows also facilitate collaboration between those responsible for income, expenses, and oversight. The end result is an organization operating from the same numbers with full transparency into the budgeting process.
For nonprofits seeking to gain control of their finances, budgeting software is a must-have tool that provides insight, accountability, and efficiency. By tracking every dollar, nonprofits can ensure they make the most of limited resources in achieving their mission.
Top 5 Features to Look for in Budgeting Software
When choosing budgeting software for your nonprofit, look for options with these key features:
Intuitive Interface
As a nonprofit, you want software that’s easy to use so you can spend less time figuring it out and more time on your mission. Look for an interface that’s clean, simple, and intuitive. Options with drag-and-drop functionality, dashboard overviews, and built-in tutorials are ideal.
Custom Reporting
You need reports to keep stakeholders, donors, and board members up to date. Software with custom reporting allows you to generate reports on things like departmental spending, program budgets, grant budgets, and revenue sources. You can create reports in the format and with the specific data that’s most useful for your needs.
Grant Management
If you receive grant funding, you need a way to track grant budgets, deadlines, and reporting requirements. Grant management features allow you to see all your grants in one place, get alerts about upcoming deadlines, log your grant applications and awards, track grant expenditures against budgets, and run grant-specific reports.
Donor Management
For nonprofits, donors are the lifeblood of your organization. Look for software with built-in donor management that allows you to track donations, see a donor’s full giving history, log correspondence, and see reports on your donor pipeline and retention. Some options even integrate with third-party donor management tools like DonorPerfect, Neon, and Bloomerang.
Budget Versatility
Your budgeting needs are complex, so you want software that can handle them. Look for options that allow for:
•Multi-year budgeting: Create budgets that span one to five years.
•Departmental budgeting: Develop separate budgets for each department, program, or cost center.
•Restricted funds budgeting: Track income and spending for restricted grants and donations.
•Capital budgeting: Plan and budget for major one-time expenses like new equipment or building costs.
•And more: Scenario building, cash flow projections, budget versions, etc.
The right budget software for nonprofits can make managing your organization’s finances much easier. Focus on options with an intuitive interface, strong reporting, grant management, donor tracking, and versatile budgeting features. With the proper tools in place, you’ll gain valuable insights into your financial health and be able to plan for a bright future.
The Best Budgeting Software Options for Small Nonprofits
As a small nonprofit, finding budgeting software that meets your needs without draining your funds can be challenging. Here are some of the best free or low-cost options to help you keep better track of your finances.
Excel or Google Sheets
If you’re on a shoestring budget, start with the basics. Excel or the free Google Sheets allow you to create simple spreadsheets to track income, expenses, and budget. While not very sophisticated, they get the job done for smaller nonprofits. You can create formulas to automatically calculate totals and ensure your numbers add up. If you need help, there are many free templates and tutorials online to guide you.
Quicken
For a small monthly or annual fee, Quicken provides more robust budgeting and financial management tools for nonprofits. You can connect to your bank and credit card accounts to automatically import transactions and match them to your budget categories. Quicken also allows you to create reports, charts and dashboards to visually track your key financial metrics. They offer a 30-day free trial so you can test it out first.
Mint
Like Quicken, Mint offers digital budgeting and money management software for individuals and businesses. However, Mint is free to use. You can create budgets, sync transactions from your accounts, pay bills, and get customized tips and alerts to help lower fees and save money. The simple, user-friendly interface makes it easy to set budgets, view reports and get a quick snapshot of your nonprofit’s financial health.
Zero
Zero is an accounting software platform built specifically for nonprofits and charities. They offer a basic free plan with income and expense tracking, reporting and dashboards. Paid plans provide more advanced features like budgeting, bill pay, and integration with popular nonprofit tools. Zero keeps your data secure and private in the cloud. They also provide nonprofit-specific guidance and support to help you improve your financial management practices.
Using budgeting software, even a free option, can help bring more clarity and control to your nonprofit’s finances. Take time to evaluate which tool meets your specific needs and the level of functionality you require. With a little effort, you’ll gain valuable insights to make the most of your limited resources.
Choosing the Right Subscription Plan for Your Needs
Choosing a subscription plan for your nonprofit’s budgeting software is an important decision. You want a solution that fits your current needs and budget, with room to grow as your organization expands. Most budget software for nonprofits offer tiered subscription plans at different price points based on the number of users and available features.
For small nonprofits with limited funding, a basic plan is probably your best bet. These typically allow a few users — maybe 3 to 5 — to access the core budgeting features like expense tracking, reporting, and dashboards. If you only have one or two people managing the budget, this can work great as a starter plan. You can always upgrade to a higher tier later on if needed.
Mid-range plans are good for mid-sized nonprofits with more complex needs and tighter controls over budgeting. These often allow 10-25 users with advanced features like budget scenario modeling, custom reports, and forecasting tools. If you have several departments managing individual budgets, the extra users and functionality can help improve organization-wide budget visibility and control.
For large nonprofits with many projects and funding sources to manage, an enterprise-level subscription is the way to go. These plans typically offer unlimited users and access to all features, including project budgeting, grant management, and fund accounting. Although enterprise plans come with a higher price tag, the ability to provide budget access for as many users as needed and manage highly complex budgets can be well worth the investment.
When evaluating your options, think about your current and future needs. How many people are involved in budgeting and accounting? What types of reports and visibility do you need? Are there any must-have features that would improve your processes? Choose a plan that has the essentials you need to properly manage your nonprofit’s budget, with room for your organization to scale and take advantage of more advanced capabilities over time. The right budget software and subscription plan can make a big difference in gaining better control and insight into your nonprofit’s finances.
Integrating New Software Into Your Existing Systems
Integrating new software into your existing systems and workflows can be challenging for any organization, especially nonprofits with limited resources. But with some planning, you can smoothly transition to new budgeting software and start reaping the benefits.
Assess your needs and options. What specifically isn’t working with your current budgeting process? What features are must-haves for new software? Check reviews of popular nonprofit budget tools like QuickBooks, Sage Intacct and Aplos to determine which seem the best fit. Many offer free trials so you can test them hands-on.
Get input from your team. Who will be directly using the new software? Ask for their feedback on options and what they need to do their jobs effectively. Address any concerns early on to gain buy-in before making a final choice.
Develop an implementation plan. Choose a start date to begin using the new software, and work backward to map out key steps. Allow time for configuring the software, importing data, testing, and training staff. Start with a small pilot group, then expand to the full team. Provide lots of resources and support in those early days.
Review and refine. In the first few months, take time to evaluate how the transition is going. Make any necessary tweaks to processes or software settings. Continue offering training and refreshers for your staff. As the software becomes second nature, you’ll wonder how you ever lived without it!
Migrating to a new budgeting solution is challenging, but by choosing the right tool for your needs, gaining staff input, and following a systematic implementation plan, you’ll be managing your finances more efficiently in no time. The key is starting with small steps, learning as you go, and remaining patient through occasional hurdles. With the right software in place, you’ll gain valuable insights into your financial health and be able to make well-informed decisions for your organization.
Conclusion
So there you have it, a roundup of the best free and low-cost budgeting tools tailored for nonprofits. Any of these options can help streamline your financial processes and give you more insight into how your dollars are being spent. At the end of the day, choosing budget software is all about finding what works for your unique needs and situation. The good news is there are plenty of great solutions out there that won’t break the bank. Now go forth and pick a tool so you can get back to focusing on what really matters – serving your community and making a difference. You’ve got this!