Fund accounting software made simple for nonprofits
Track restricted and unrestricted funds, manage grants, and pull together the nonprofit financial statements your board trusts. Xero is fund accounting software for nonprofits, with fund-level visibility for foundations, churches, and growing nonprofits.
What you get with Xero fund accounting software
Xero simplifies your fund accounting. Here’s how it smooths nonprofit financial management, reporting, and working together in the cloud. Explore budgeting software built for nonprofits.
Restricted fund accounting, simplified
Tag each transaction to a fund, program, or grant. Report on each one, and keep donor-restricted funds separate.
Customize your financial statements
Run reports by fund, from profit and loss to cash flow. 88% of customers agree Xero improves financial visibility.
Collaborate on your nonprofit accounting from anywhere
Give staff, board members, and auditors role-based access – unlimited general users at no extra cost.
What is fund accounting software?
What is fund accounting software? It's accounting for nonprofits, foundations, and churches. It tracks money by source and purpose, not profit. Donor-restricted funds stay apart from unrestricted funds, with net asset classification that respects donors’ wishes.
- Xero is trusted by 4.9 million subscribers around the world.
Fund accounting software features
Good fund-based accounting software covers multi-fund tracking, a customizable chart of accounts, grant management, and program accounting. Xero does it all: tag restricted funds with tracking categories, import your chart by CSV, and add bank feeds from 800+ US institutions.
- 91% of customers agree Xero is easy to use.
Built for your nonprofit organization
Xero is accounting for nonprofits of all sizes. Small nonprofits get simple NPO accounting and a quick chart of accounts. Mid-sized groups get nonprofit management software that scales. Churches get church accounting software for designated giving, and foundations keep distributions clear.
- Rated the most-loved small business accounting software in the US
Fund accounting reports and compliance
US nonprofits report against FASB 116/117, ASC 958, and Form 990 – covering contributions, net asset classification, and allocating functional expenses. Xero supports nonprofit financial statements by tracking restricted and unrestricted funds, an audit trail, and controls for donor restrictions.
- Xero helps you to store receipts and bills securely in the cloud for IRS compliance and audit readiness
Pay your bills at no extra cost
Free standard ACH bill payments are now included in Xero business plans.*
Early
for the first 3 months
Then $27 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- 5 bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with basic graphs
- 30 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Track income and expenses
- Free expert setup help
Growing
for the first 3 months
Then $59 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 60 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
- Budget with smart suggestions
- Auto-reconcile transactions
- Track income and expenses
- Free expert setup help
Forecast with clarity
Forecast with clarity
Established
for the first 3 months
Then $97 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 180 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
- Analyze KPIs and ratios
- Use multiple currencies
- Track time and costs for projects
- Employee expense and mileage claims
- Benchmark against the industry
- Make online bill payments (International)
- Budget with smart suggestions
- Auto-reconcile transactions
- Track income and expenses
- Free expert setup help
Fund accounting software pricing
Xero’s fund accounting software for nonprofits is priced by plan, the funds you track, and the apps you add. Beyond the fee, factor in setup and training costs. While some bookkeeping programs and accounting software charges per user, Xero keeps it clear – with unlimited users included.
- Add unlimited general users at no extra cost, so the whole team can pitch in
Fund accounting software that connects
Bring your tools together in one system. Sync donor and fundraising CRMs to keep restricted gifts tied to the right fund. Run payroll through Gusto to spread costs across programs. Connect bank feeds from 800+ US banks to auto-reconcile, saving around 6 hours a week. Capture receipts in Xero.
- Connect 1000+ certified apps – more than any major accounting competitor
FAQs about fund accounting software
Fund accounting software tracks money by fund or purpose rather than by profit. It separates your finances into distinct funds (like restricted and unrestricted) so you can show you’ve met donor and grant requirements. Most fund accounting software tags transactions to funds or programs, runs reports at the fund level, and keeps your records ready for any audits. In Xero, tracking categories let you tag every transaction to the right fund.
Fund accounting software tracks money by fund or purpose rather than by profit. It separates your finances into distinct funds (like restricted and unrestricted) so you can show you’ve met donor and grant requirements. Most fund accounting software tags transactions to funds or programs, runs reports at the fund level, and keeps your records ready for any audits. In Xero, tracking categories let you tag every transaction to the right fund.
Many small nonprofits start with spreadsheets or general accounting tools, but those lack native fund tracking, so restricted funds end up in manual workarounds and compliant reports get harder to produce. It's worth upgrading once you're juggling several grants, tracking donor restrictions, or preparing for an audit. Xero is nonprofit accounting software that bridges the gap, with tracking categories that give you fund-level reporting without enterprise complexity.
Many small nonprofits start with spreadsheets or general accounting tools, but those lack native fund tracking, so restricted funds end up in manual workarounds and compliant reports get harder to produce. It's worth upgrading once you're juggling several grants, tracking donor restrictions, or preparing for an audit. Xero is nonprofit accounting software that bridges the gap, with tracking categories that give you fund-level reporting without enterprise complexity.
Many small nonprofits start with spreadsheets or general accounting tools, but these lack native fund tracking, so restricted funds end up in manual workarounds and it gets harder to produce compliant reports. It's worth upgrading once you're juggling several grants, tracking donor restrictions, or preparing for an audit. Xero bridges the gap with tracking categories that give you fund-level reporting without the complexity of enterprise nonprofit software.
Many small nonprofits start with spreadsheets or general accounting tools, but these lack native fund tracking, so restricted funds end up in manual workarounds and it gets harder to produce compliant reports. It's worth upgrading once you're juggling several grants, tracking donor restrictions, or preparing for an audit. Xero bridges the gap with tracking categories that give you fund-level reporting without the complexity of enterprise nonprofit software.
Look for the essentials:
- multi-fund tracking
- restricted fund management
- grant budget versus actual reporting (often called grant accounting software)
- a customizable chart of accounts
- an audit trail
- role-based access
- automated bank feeds
Xero covers these with tracking categories, automated US bank feeds, and a large app ecosystem so you can tailor your Xero organization to the way your nonprofit runs.
Look for the essentials:
- multi-fund tracking
- restricted fund management
- grant budget versus actual reporting (often called grant accounting software)
- a customizable chart of accounts
- an audit trail
- role-based access
- automated bank feeds
Xero covers these with tracking categories, automated US bank feeds, and a large app ecosystem so you can tailor your Xero organization to the way your nonprofit runs.
The cost depends on the features you need, how many funds you track, and the apps you connect. Most pricing models are either per user or a flat rate. When you’re comparing options, look at the total cost over a few years, not just the monthly fee. Factor in setup, training, and the cost of app integrations. Xero keeps pricing clear, with flat-rate pricing and unlimited general users at no extra cost.
The cost depends on the features you need, how many funds you track, and the apps you connect. Most pricing models are either per user or a flat rate. When you’re comparing options, look at the total cost over a few years, not just the monthly fee. Factor in setup, training, and the cost of app integrations. Xero keeps pricing clear, with flat-rate pricing and unlimited general users at no extra cost.
Restricted funds carry donor limits on how you can spend them, while unrestricted funds can go towards any purpose. Good nonprofit fund accounting software lets you tag each transaction to the right fund, then shows balances and activity by fund type. In Xero, tracking categories like fund type and program let you tag each transaction, and then generate profit and loss reports that you filter by category to show the status of each fund.
Restricted funds carry donor limits on how you can spend them, while unrestricted funds can go towards any purpose. Good nonprofit fund accounting software lets you tag each transaction to the right fund, then shows balances and activity by fund type. In Xero, tracking categories like fund type and program let you tag each transaction, and then generate profit and loss reports that you filter by category to show the status of each fund.
In the US, the key frameworks are:
- FASB 116/117 for recognizing contributions and donor restrictions
- ASC 958 for how nonprofit financial statements are presented
- Form 990 reporting, including functional expense allocation
Fund accounting software helps you comply with these frameworks by classifying net assets properly, keeping an audit trail, and generating reports that align with them.
In the US, the key frameworks are:
- FASB 116/117 for recognizing contributions and donor restrictions
- ASC 958 for how nonprofit financial statements are presented
- Form 990 reporting, including functional expense allocation
Fund accounting software helps you comply with these frameworks by classifying net assets properly, keeping an audit trail, and generating reports that align with them.
Yes. Modern fund accounting software connects with donor CRMs, fundraising platforms, payroll, and banking.
Xero links to a large ecosystem of certified apps, plus payroll through Gusto and automated US bank feeds, so your donor data and accounting stay in step.
Find and connect apps in the Xero App Store.
Yes. Modern fund accounting software connects with donor CRMs, fundraising platforms, payroll, and banking.
Xero links to a large ecosystem of certified apps, plus payroll through Gusto and automated US bank feeds, so your donor data and accounting stay in step.
Find and connect apps in the Xero App Store.
The setup time varies depending on the complexity of your nonprofit’s finances. A simple setup can take a couple of weeks, while larger organizations may need a month or two for migration and training. Typical steps include setting up your chart of accounts, migrating data, configuring workflows, and training your team.
With Xero, around half of small businesses get set up in under 4 hours, backed by Xero’s 1:1 support during your first 90 days.
The setup time varies depending on the complexity of your nonprofit’s finances. A simple setup can take a couple of weeks, while larger organizations may need a month or two for migration and training. Typical steps include setting up your chart of accounts, migrating data, configuring workflows, and training your team.
With Xero, around half of small businesses get set up in under 4 hours, backed by Xero’s 1:1 support during your first 90 days.
Yes. Churches and religious organizations use nonprofit fund accounting software to track contributions and designated giving, such as building or mission funds, and for financial reporting.
Xero supports churches with
- tracking categories for designated funds
- role-based access for treasurers and finance committees
- tools you can add from the Xero App Store. apps designed for a church's needs, like online giving and member management, available in the Xero App Store
Yes. Churches and religious organizations use nonprofit fund accounting software to track contributions and designated giving, such as building or mission funds, and for financial reporting.
Xero supports churches with
- tracking categories for designated funds
- role-based access for treasurers and finance committees
- tools you can add from the Xero App Store. apps designed for a church's needs, like online giving and member management, available in the Xero App Store
Why choose Xero fund accounting software
Xero is cloud-based, easy to use, quick to connect, and gives nonprofits the fund-level control they need with room to grow.
Easy to use, quick to set up
91% of customers agree Xero is easy to use, with support and guided setup through your first 90 days.
An app for every need
Connect donor CRMs, payroll and banking. Four in five customers save six hours a month on data entry.
Xero: award-winning and trusted
Most-loved small business accounting software in the US, and the 2025 Fintech Breakthrough Award winner.
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