Top Benefits of Nonprofit Accounting Software and Nonprofit ERP Software

Nonprofit accounting software and nonprofit ERP software have an important role in the nonprofit landscape. To people unfamiliar with working in the nonprofit sector, it may seem strange that nonprofits invest in technological solutions just like for-profit businesses do. However, nonprofits perform many of the same operations that for-profits do, such as sending out mass emails or mailings and holding events, while also facing additional requirements to maintain their non-profit status.

For a well-run nonprofit, using nonprofit ERP software or software for nonprofit accounting provides multiple benefits.

What’s the Difference Between Nonprofit ERP Software and Nonprofit Accounting Software?

Like in the business world, in the nonprofit world there is a difference between enterprise resource planning (ERP) software and accounting software.

Accounting software is just that—accounting software. Most accounting software offers similar functionality, including accounts receivable, accounts payable, general ledger, billing, and other similar functions. Some also offer additional functionality. But accounting software is designed to function primarily in the accounting space and won’t be useful for much else.

ERP software is different. ERPs are designed to touch every part of your business or nonprofit, from customer service to shipping. They also offer the same types of accounting and finance functionality as accounting software. However, your ERP software will extend into other areas, too. One of the main purposes of ERP software is to streamline communications throughout your business. With an ERP, every department always has access to the same up-to-date, real-time data.

Nonprofits often need to meet additional rules that businesses don’t, such as rules about disclosing how funds are used and limiting funds from certain sources to specific uses. Software solutions designed to meet the needs of nonprofits must be able to meet these additional needs as well.

What is ERP for Nonprofit Organizations Used For?

Nonprofit ERP software is used to perform a variety of non-profit specific functions, in addition to its standard functionality of streamlining operations and improving communication between departments.

Here’s what your nonprofit ERP system can do for you:

• Donor Management

  – ERPs help nonprofits better manage and leverage donor management programs. Better donor management means better understanding your donors, including who they are and what they care about. This allows you to improve donor engagement and retention.

• Program Management

  – Nonprofits can use ERP software to better manage planning, implementation, and evaluation of new initiatives or programs. This allows nonprofits to better use their existing resources and streamline program operations.

• Fundraising Software

  – Nonprofits depend on fundraising to survive. Since fundraising is so important, nonprofits often use different types of fundraising software solutions to support peer-to-peer, DIY fundraisers, community giving, full-stack fundraising, and more. ERPs can handle this functionality, too. They also combine donor management and fundraising data into a single software solution for easy analysis.

• Manage Nonprofit Operations

  – ERPs help manage nonprofit operations from employee and volunteer schedules to maintenance requests.

• Cash & Fund Management

  – They help nonprofits manage and control day-to-day transactions, cash balances, funds transfers, and bank account reconciliation processes. ERPs make fund management easy. From properly defining funds to restricting fund access and eliminating the commingling of cash, your nonprofit ERP has you covered.

• Grant Management

  – Apart from fundraising, grants are the lifeblood of many nonprofits. ERPs make managing your grants easy with a strong audit trail to ensure that your organization remains in compliance with all requirements and regulations.

That’s only a partial list of the benefits that ERP software can offer to nonprofit organizations.

What’s the Best ERP for Nonprofit Organizations?

The best ERP for your nonprofit organization is the one that best fits the needs of your organization. As a general rule, ERP software is highly customizable. Some ERP software solutions used by for-profit businesses can be adapted to meet the needs of non-profits, too. Depending on the needs of your nonprofit, there are also software solutions designed to serve specific functions, like accounting or fundraising without providing the additional functionality an ERP provides.

Generally, a company or nonprofit purchases ERP software from an implementation partner who will also help them customize it to fit their needs. A good implementation partner can help walk your non-profit through your options and help you select the software that best fits the needs of your nonprofit.

About Us

CertiPro is your full-service technological solutions provider. We specialize in Sage Intacct, a 100%-based cloud ERP. It’s also the first and only AICPA-preferred financial management product. Click here to learn more about Sage Intact, or here to schedule a demo to see how Sage Intacct could help your nonprofit.