Sage is the larger, global corporation that has acquired and created a number of solutions across many industries, one of which is its go-forward product, Sage Intacct. When someone is considering Sage for their nonprofit, it is typically a Sage Intacct evaluation. However, Sage does have other solutions within the nonprofit space.
Sage 50 is Sage’s smaller-scale accounting solution, competing with the likes of QuickBooks and Xero. It does not offer the same robust functionality as Sage Intacct, but it is a great starter solution for nonprofits in need of a basic accounting solution.
Sage 100 and Sage 300 are other solutions that may be included in the Sage for Nonprofits discussion, although they do not have a nonprofit focus. Sage 100 and 300 are more general solutions that can be customized to meet nonprofit needs, as well as integrated with third-party or bolt-on solutions to meet more specialized needs, like grant management.
Sage 50, 100, and 300 are typically not our recommendation for nonprofit clients, simply because an organization looking to modernize will find more success on a go-forward, more nonprofit-oriented solution like Sage Intacct.
Sage Intacct has been Sage’s focus in recent years, with new releases centered around bringing functionality to more and more industries. This has included updates to Sage Intacct Construction and the release of Sage Distribution and Manufacturing, built on top of Sage Intacct. Nonprofits operating within those industries already utilizing Sage Intacct have benefited from the advancements, allowing them to extend their technological footprint without needing to select a number of best-of-breed or third-party solutions.
Beyond what is coming in the Sage ecosystem, Sage Intacct itself has long delivered the accounting functionality necessary to run a successful nonprofit. That is why many consider it the top solution for nonprofit selections. Below, we will dive into that functionality in depth.
Basic accounting for nonprofits is not unique from most other businesses. They must comply with the same governmental policies set forth by the Financial Accounting Standards Board within the Generally Accepted Accounting Principles (GAAP). However, requirements stray when it comes to meeting nonprofit-specific standards outlined by ASC Topic 958. These standards dictate how nonprofits report based on donors and their mission-driven financial health.
This is where vendors like Sage come in to provide solutions for more specialized nonprofit needs, such as fund accounting and donor management. These capabilities are essential for growing nonprofits.
Sage Intacct provides robust fund accounting functionality, allowing nonprofits to adhere to the accounting standards set forth by each country. Sage’s global footprint also ensures international nonprofits find success with their nonprofit accounting software with little customization.
Through Sage’s fund accounting solution, nonprofits can harness the capabilities to maintain their complex finances and ultimately generate reports to manage donor relationships. This includes detailed budget management, as well as expense tracking and strong internal controls. All these capabilities are native to Sage’s Nonprofit Accounting Software and offer an ideal accounting solution for nonprofits out of the box.
Sage’s donor management solution (referred to as Sage Intacct Fundraising, powered by DonorPerfect) caters to the entire lifecycle of maintaining a donor relationship. Capabilities start on the front-end with content customization to create forms and automate tasks in order to streamline the process of donating. In-house payment processing works in tandem with these capabilities to attract and retain donors.
Sage has also set up systems for automatic staff alerts and assignments for segmenting donor communication. Employees have more control over their assigned contacts, enabling them to personalize relationships in order to create more enriching experiences that keep donors engaged for longer.
Most nonprofits select a grant management solution to reduce errors and improve decision-making through greater automation and overall organization. This is exactly what customers can expect from Sage’s grant management solution. Customers will immediately receive value by moving away from spreadsheets into a powerful, automated tool for post-award grant reporting and administration.
Within Sage Intacct, customers connect their single source of truth, the ERP, to access a robust financial solution for managing public and private grants. This solution allows information to flow freely between systems, eliminating the need for multiple systems to manage complex grant awards. Capabilities within the grant management tool Sage Intacct enable organizations to cross-reference accounting entries with grants for more granular reporting and comparing of budgets to actuals, especially when it comes to grants with reporting periods that vary from your fiscal year. Greater tracking and technology also allow organizations to break down their records to provide details for each unique program. Sage also offers an advanced Grant Tracking & Billing module that enables organizations to have greater control over qualified costs and their related billings and revenue recognition for a more end-to-end workflow and audit trail.
Ultimately, Sage’s tools deliver great financial control and visibility, enabling nonprofits to meet compliance standards more easily and remain audit-ready when managing grants.
With compliance concerns like ASU 2018-08 and ASC 606 driving when to recognize revenue, nonprofits need solutions configured to track exchange transactions versus nonreciprocal contributions, alongside conditional versus nonconditional contributions. This simplifies the accounting process significantly by ensuring nonprofits can accurately apply the correct accounting guidance in order to effectively recognize revenue.
For nonprofits with more complex project needs, Sage offers Sage Intacct Project and Resource Management. Its core capabilities enable nonprofits to maintain control over their budgets and keep costs in check. Many nonprofits require these capabilities to streamline projects and ensure accurate accounting across the entire organization. This application integrates with Sage Intacct’s other nonprofit applications to ensure a seamless transfer of data between vital systems.
While not specific to nonprofits alone, Sage’s AI-powered finance assistant is empowering nonprofits to do more with their existing resources. Sage Copilot uses AI to streamline financial close through budget anomaly detection, automated account reconciliation, and data retrieval for rapid financial report generation. Copilot’s specialized financial focus ensures nonprofit customers get the most from Sage Intacct.
ERPs have never been a one-size-fits-all approach. Like any other ERP, Sage has niche areas and industries of focus. In other areas, however, functionality suffices but may not extend to complex operations.
For nonprofits with manufacturing requirements, Sage offers the newer Sage Distribution and Manufacturing. While it is an adequate solution for many, others may require more complex capabilities than SDMO. SDMO is built for light manufacturing, so needs beyond that will require a separate solution.
Ultimately, like any ERP project, you need to identify what your needs truly are and evaluate solutions from there. Sage Intacct is a great product for nonprofits looking for a pure financials solution, but so are many other applications available on the market. Start with your pain points and needs to build an ideal scene for your new solutions. With an end goal in mind, you can evaluate solutions both objectively and subjectively to identify the right solution for your business and users. If you need help evaluating the right nonprofit solution for your business, schedule a free consultation with the experts at ERP Advisors Group today!