Using Bill.com for Non-Profits: Donations and Expenses

Managing donations and expenses efficiently is a constant challenge for non-profit organizations.

Using Bill.com can help non-profits seamlessly track donations, automate expenses, and gain financial insights to maximize impact.

This guide will cover how to leverage Bill.com's features for non-cash donations, recurring gifts, reporting, and more to boost nonprofit financial oversight.

Introduction to Bill.com for Non-Profit Organizations

Bill.com provides a streamlined platform for non-profit organizations to manage donations and expenses virtually. By centralizing financial data and workflows, Bill.com ensures oversight, compliance, and efficiency for non-profits.

Key benefits include:

• Cost-effective pricing tailored to needs of non-profits
• Secure online payment processing that is PCI compliant
• Seamless integration with accounting systems like QuickBooks
• Remote accessibility for managing finances from anywhere

Understanding Bill.com's Nonprofit Pricing Structure

Bill.com offers discounted nonprofit pricing, making it more affordable for organizations with limited budgets. Pricing is based on number of users and transactions, with opportunities to lower costs further through annual subscriptions.

Nonprofits can take advantage of:

• User fees starting at $25 per user per month
• Transaction fees as low as $0.25 per transaction
• Potential discounts up to 20% with annual subscriptions

With predictable fees and flexible plans, Bill.com adapts to the unique needs of each nonprofit organization.

The Virtual Environment: Managing Non-Profit Finances Remotely

Bill.com allows nonprofits to manage financial data and tasks remotely through its cloud-based platform. This facilitates collaboration across locations and flexible access from any device.

Key features enabling virtual financial management include:

• Cloud-based software accessible from any location
• Real-time visibility into income, expenses, payments
• Secure digital approval workflows
• Paperless invoice processing and storage

By centralizing financial information digitally, Bill.com minimizes manual tasks and paperwork. Non-profits can focus on their mission with efficient and transparent financial oversight.

Ensuring Security: PCI Compliant Payment Gateway and Encryption

As a PCI Level 1 compliant payment processor, Bill.com offers the highest level of security for accepting online donations. All data is encrypted both in transit and at rest.

Security features include:

• PCI Level 1 certification for secure payment processing
• 256-bit AES encryption for data protection
• Secure online portal with two-factor authentication
• No storage of sensitive financial information

Robust security protocols ensure protection of donor data while facilitating online contributions. This is essential for building trust and safely expanding fundraising outreach.

Seamless Integration with Non-Profit Accounting Systems

Bill.com integrates with popular accounting platforms like QuickBooks Online and Xero to streamline financial workflows. This eliminates manual entry and syncing of data across systems.

Key features of platform integrations:

• Two-way syncing with QuickBooks Online and Xero
• Automatic categorization of income and expenses
• Seamless connectivity with bank accounts
• Simple invoice and payment processing

By centralizing accounting tasks through Bill.com, nonprofits can focus on serving their communities rather than repetitive administrative work.

How do nonprofits keep track of donations?

Nonprofit organizations use fund accounting to track donations and ensure they are used appropriately. Here are some key ways nonprofits manage donations:

• Fund accounting: Nonprofits create separate funds to organize donations by purpose, project, or restriction. This allows clear tracking of how donations should be used. For example, a "Building Fund" would track all donations to be used for a new building.
• Donor management software: Many nonprofits use software like "" to track donors and donation history. This creates donor profiles, sends receipts, and allows nonprofits to provide stewardship.
• Accounting integration: To simplify reporting, nonprofits connect their donor database with accounting software like QuickBooks Online. This automatically syncs key donation data.
• Auditing: Nonprofits produce financial reports tracking income and expenses for each fund. External auditors review reports to verify proper use of restricted donations.

Proper tracking provides donors transparency on how their gifts are used. For nonprofits, detailed fund accounting and reporting ensures donations are spent correctly according to the donors' intents. Using donor management and accounting software streamlines the process.

How to set up an accounting system for a nonprofit organization?

Setting up an accounting system for a nonprofit organization is crucial for proper financial management and compliance. Here are the key steps:

Choose accounting software

Select software like QuickBooks or Sage Intacct that allows you to track donations, grants, expenses and generate financial reports. Cloud-based systems offer accessibility. Ensure the software meets your budget and reporting needs.

Create a chart of accounts

A chart of accounts is a list of all financial accounts used to classify transactions. Common ones for nonprofits include assets (e.g. cash, accounts receivable), liabilities (e.g. accounts payable), net assets, revenues and expenses.

Select cash or accrual method

Cash basis recognizes revenues and expenses when cash is received or paid. Accrual basis does so when transactions occur, regardless of cash flow. Accrual better matches revenue and expenses but requires more work.

Learn nonprofit financial statements

Key reporting statements are the statement of financial position, statement of activities, statement of cash flows and statement of functional expenses. Understanding what these cover will help in reporting.

Get board and staff buy-in

Provide training to board members and staff who will use the system. Set clear policies and procedures. Implementation is smoother with organizational alignment and consistent use of the software.

Keeping the accounting organized from the start makes fulfilling IRS Form 990 requirements much easier. With the right setup, you can focus on your mission.

How do nonprofits account for donations?

Nonprofits use fund accounting to track donations and expenses for specific programs and activities. This allows them to allocate money appropriately based on donor intent and legal requirements.

There are two main methods nonprofits use:

• Accrual accounting: Revenue is counted when pledged/earned, expenses when incurred. Provides a more accurate picture over time.
• Cash basis accounting: Revenue is counted when received, expenses when paid. Simpler to manage but doesn't match revenue and expenses as well.

Most nonprofits use accrual accounting because it adheres to GAAP standards and allows better tracking of long-term programs. However, smaller nonprofits may opt for cash basis due to its simplicity.

Popular nonprofit accounting software like QuickBooks and Bill.com integrate with CRMs and donation sites to automatically track different revenue sources and allocate them to the appropriate funds. This automation makes managing nonprofit finances much easier.

Key features in Bill.com that support fund accounting needs include:

• Customizable charts of accounts and classes
• Reporting by fund and allocation codes
• Rules to automatically categorize transactions
• Seamless integration with donation sites

Proper fund accounting is critical for nonprofit transparency and compliance. It also provides organization leadership with the financial visibility they need to manage resources and make strategic decisions.

What online payment system is best for nonprofits?

Choosing the right online payment system is crucial for nonprofits to efficiently manage donations and expenses. Here's an overview of some top options:

Stripe

Stripe is known for its reliability and offers a 2.9% + $0.30 fee per transaction. It also provides discounted rates for registered nonprofits. With built-in fraud protection and no monthly fees, Stripe is a great choice if you want a simple, low-cost payment solution.

PayPal

PayPal charges a 1.99% fee plus a fixed $0.30 transaction fee, with volume discounts available. It's beginner-friendly and ideal for nonprofits just getting started with online payments. However, some more complex nonprofits may outgrow PayPal over time.

Square

If your nonprofit does any in-person, point-of-sale fundraising or transactions, Square is fantastic. It charges 2.9% + $0.30 per online transaction. Square offers free credit card readers, invoices, inventory tracking, and POS solutions.

Authorize.Net

Known for security and fraud protection tools, Authorize.Net charges a $25 monthly gateway fee plus 2.9% + $0.30 per transaction. It's a good fit for larger nonprofits handling significant donation volumes.

Evaluating your nonprofit's size, donation volume, fraud risks, and features needed will help determine the best payment system. Many nonprofits start with PayPal or Stripe for their simplicity and scale up to Authorize.Net over time. Partnering with a payment processor that aligns with your nonprofit's growth is key for long-term success.

BILL com Implementation for Non-Profit Organizations

Non-profit organizations can benefit greatly from using Bill.com to manage donations, expenses, invoices, and payments. However, implementing Bill.com requires some customization to fit the unique needs of non-profits.

Initial Setup and Account Management

When first setting up Bill.com for a non-profit, be sure to select the appropriate nonprofit pricing plan. Take advantage of integrations with software like QuickBooks Online and QuickBooks Payments for easier account management. Assign user roles and permissions to provide access and functionality tailored to each user's responsibilities.

Connecting with TechSoup for Non-Profit Discounts

TechSoup offers exclusive discounts on Bill.com services for registered nonprofits. Verify eligibility and enroll with TechSoup to receive reduced Bill.com subscription fees. This provides significant cost savings for non-profits looking to leverage Bill.com.

Integrating with Donor Management and CRM Software

Integrate Bill.com with your existing nonprofit donor management platform or CRM solution. This allows you to easily track donations and manage donor relationships in your primary system while seamlessly managing the financials through Bill.com. Common integrations include Salesforce, Blackbaud, and more.

Customizing Accounts Receivable and Payable Workflows

Tailor Bill.com workflows for noncash donations, grant money, reimbursements, vendor payments, and more. Set up custom approval chains, reporting, and automation rules optimized for non-profit financial workflows. Bill.com provides flexibility to handle the diverse accounting needs of mission-driven organizations.

With some planning and customization, Bill.com can provide nonprofit organizations with robust financial management tools to track donations and expenses while saving time and money.

Managing Donations through Bill.com

Bill.com provides nonprofit organizations with useful features to efficiently manage donations and expenses.

Processing Recurring Donations

• Set up automated workflows in Bill.com to handle recurring donations. This allows donors to easily schedule ongoing monthly or annual contributions.
• Configure custom payment receipt templates to send recurring donors. Include donation details like amount, date, and tax ID.
• Review recurring donation performance in custom reports. Track renewal rates, changes/cancellations, and other metrics.

Tracking Donation Receipts and Payment Status

• Bill.com automatically generates donation receipts upon payment. Receipts include date, amount, and tax documentation.
• Payment statuses are updated in real-time. Quickly view if a donation succeeded, failed, is pending, or was refunded right within Bill.com.
• Leverage Bill.com's dashboard to monitor donation volumes and payment statuses. Set up alerts for failed payments or drops in revenue.

Integrating Nonprofit Donation Websites with Bill.com

• Use Bill.com's API or integrations with platforms like PayPal to connect your nonprofit site.
• Seamlessly accept one-time or recurring donations through your website which are synced and processed with Bill.com.
• Avoid manual entry by automatically recording website donations in Bill.com as they are received. Review consolidated data.

Handling Noncash Income for a Nonprofit in Bill.com

• Log noncash donations like gifts-in-kind as custom income items or using journal entries.
• Attach supporting documentation for noncash donations to record fair market values for goods or services.
• Configure custom allocation rules to split noncash donation values across different general ledger accounts.
• Run reports on noncash income sources and their dollar values over specified date ranges.

Managing Expenses and Vendors in Bill.com

Efficiently overseeing non-profit expenses and vendor relationships using Bill.com's automated systems.

Automating Invoices and Payments with Bill.com

Bill.com offers powerful automation tools to streamline the management of invoices and payments for non-profits. Key features include:

• Automated data capture from emailed invoices to eliminate manual data entry
• Customizable rules to route invoices for approvals and facilitate accounting workflows
• Scheduled and recurring payments to vendors to ensure on-time payment
• Integration with accounting software like QuickBooks Online for seamless syncing of financial data

These automation features can save non-profits significant time by reducing repetitive administrative tasks. Staff can focus more on mission-critical initiatives rather than paperwork.

Understanding BILL com Wire Fees for Vendor Payments

When paying vendors through Bill.com, one payment option is bank wire transfers. Wire transfers allow fast payments but do incur fees which are important to understand:

• Domestic Wires: $15 per wire
• International Wires: $25 per wire
• Wires rejected by receiving bank: $15 fee plus any fees charged by receiving bank

Wires usually arrive the next business day for domestic transfers and 2-3 days for international. Non-profits should weigh the faster payment speed against the higher fees compared to ACH payments which take longer but are free.

Utilizing QuickBooks Bill Pay with Bill.com

Many non-profits use QuickBooks Online (QBO) for accounting. Bill.com integrates tightly with QBO to enable seamless bill payment:

• Sync vendor, invoice, and payment data between Bill.com and QBO
• Support for QBO bill pay: pay bills directly from Bill.com while having payment recorded automatically in QBO
• Eliminates double data entry and ensures proper recording of financial transactions

The integration provides reliable QuickBooks bill pay through Bill.com without having to juggle between two systems. Staff can pay bills more efficiently.

Troubleshooting Common Software Issues

As with any software platform, occasional issues can arise while using Bill.com. Some common issues and troubleshooting tips:

• Login failures: Check internet connection. Clear browser cache/cookies. Try incognito browser mode.
• Invoices stuck in approval workflow: Check approver groups setup. Ensure approvers are active. Reassign invoice to alternative approver.
• Payments failing: Verify bank account validity and funds availability. Check for payment rule violations. Retry payment manually.
• Errors syncing with QuickBooks: Confirm QBO credentials are authorized. Check for duplicate objects between Bill.com and QBO. Try reconnecting integration.

Bill.com's customer support can also help diagnose and address persistent software issues. Proactively taking troubleshooting steps helps minimize disruption.

Leveraging Reports and Analytics for Non-Profit Financial Oversight

Using Bill.com's reporting tools to gain insights into the financial health of your non-profit organization.

Generating Donation and Expense Reports

Bill.com provides detailed reporting on donations and expenses to help non-profits analyze financial data. Reports can be generated to track donations by date, amount, campaign, and other custom fields. These reports help non-profits identify donation trends over time.

Expense reports allow non-profits to analyze spending by vendor, department, project, and other categories. Having visibility into expenses ensures proper oversight into budgeting and allows for more strategic decision making.

Reports can be exported and shared with stakeholders like board members, granting organizations, and auditors.

Analyzing Financial Data for Time-Saving Insights

Bill.com leverages AI and machine learning to surface insights from financial data. The software provides visualizations of cash flow, upcoming payments, and budget vs. actual spending. These tools allow non-profits to spend less time manipulating data and more time acting on insights.

Some examples of insights include:

• Detecting duplicate payments
• Identifying seasonality and trends in donations
• Finding opportunities to consolidate expenses with vendors
• Forecasting future cash flow needs

With clear visibility into financial data, non-profits can be more proactive and strategic with financial decisions.

Collaborating with Audit Firms through Bill.com

Bill.com facilitates collaboration with auditors and external accountants. The software allows non-profits to securely share real-time financial data and documentation through a transparent audit trail.

Key features that enable audit collaboration:

• Version history showing all changes made to transactions
• Audit trail tracking user activities like payments
• Secure digital vault to share documents
• Role-based permissions to restrict data access

By centralizing financial data and documents, Bill.com saves auditors' time through remote access rather than onsite visits.

Forecasting for Fund Allocation and Budgeting

Bill.com offers customizable forecasting capabilities to estimate future cash flow. Non-profits can forecast donation revenue based on historical trends. Expenses can be projected based on recurring payments and typical spending.

Forecasting enables better fund allocation decisions such as:

• Determining safety net reserve levels
• Planning growth initiatives and new programs
• Mapping investments to short and long-term strategic goals

With greater visibility into projected cash flows, non-profits can confidently make funding decisions aligned to their mission and community needs.

Conclusion: Maximizing Non-Profit Financial Efficiency with Bill.com

Summarizing the Advantages of Bill.com for Non-Profits

Bill.com offers several key benefits for non-profit organizations seeking to streamline their financial operations:

• Secure online payment processing and accounting through integrations with leading donation platforms and accounting software
• Automated accounts payable and receivable workflows to simplify expense and donation management
• Robust reporting and analytics provide real-time financial insights
• Significant time and cost savings compared to traditional manual financial processes

By leveraging Bill.com's features, non-profits can focus more resources directly on their mission instead of financial administration.

Actionable Steps for Non-Profits to Get Started with Bill.com

To maximize the advantages of Bill.com, non-profits should take the following steps:

• Evaluate accounting and donation software needs and identify appropriate Bill.com integrations
• Consult with Bill.com to determine the best plan and features for organizational requirements
• Set up essential workflows for key financial processes like accounts payable and receivable
• Provide staff training on using Bill.com's interface and tools
• Leverage Bill.com support to optimize system configuration and reporting

With the right planning and preparation, implementing Bill.com can significantly bolster a non-profit's financial efficiency.

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