2009 Review of Not-for-Profit Accounting Systems

Of course, the other side of the nonprofit that needs a solid software system
is fundraising and donor tracking. A solid, accurate donor base is a necessity
for a nonprofit of any size. And without it, the agency stands little chance
of performing the work that others may depend on.
The products reviewed here range from basic, entry-level fund products to enterprise-level
nonprofit solutions that easily handle everything from fund allocation to donor
tracking. Most fall somewhere in between.

The following categories were considered in each product review:

Ease of Use/Flexibility. I’ve spoken with countless
people who have invested a lot of time and money on a software product only
to be overwhelmed by a steep learning curve. As a result, they are often forced
to search for another product, wasting their time and their money, along with
their employees’ time. Ease of use is important.

Modules/Scalability. Both large and small nonprofit organizations
should consider the modules included with the base system as well as those available
as add-ons. How scalable is the product? Can it grow as the nonprofit grows?
This is an important category, particularly for nonprofits undergoing a transitional
phase.

Features/Functionality. What does this software do that sets
it apart from the competition? How easy is it to perform those necessary functions?
Also, what are some of the new features that have recently been added to the
product?

Reporting. Will the product produce the reports (Form 990
and FASB 117) that every nonprofit must be able to produce. What about management
reports? Can reports be customized or exported to Excel or saved as a PDF file?
How do the product’s reporting capabilities set it apart from other products?

Support/Help. Is a solid Help function available? Are users
able to reach support personnel when needed? What are the support options?

Relative Value. This particular section is pretty relative
(as noted in the section title), but we look at the cost of the product versus
what a nonprofit will get for that price. If a system provides extensive features
and functionality, but those features aren’t really utilized properly
at your NFP client’s organization, or if the product does not provide
the data needed for the NFP to survive and thrive, the relative value is low.
However, if a different organization purchases the more robust and feature-rich
system, and it meets the needs of that organization, then the relative value
is high.

Be sure to advise your clients to take the time to visit the vendor websites
for more information and product demos. Have them try out a few, and then help
them make their decision. How well the program suits your client’s nonprofit
organization will determine its value and ultimately the success of the organization
and your relationship with it.

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