My first impression: MoneyMinder was created by people who know nonprofits for nonprofits. This was confirmed when I started binging MoneyMinder’s 2-Minute Treasurer Tips podcasts. I ended up listening to all 60+ episodes in a day. The co-owner, who hosts the podcast, regularly referred to nonprofits that she volunteered for.
Second impression: MoneyMinder was created by people who know nonprofit accounting. They seem to have built an accounting software that keeps the Form 990 in mind as well as other compliance issues. Filing the tax return is easily the worst part of being a nonprofit. Nonprofits usually don’t pay any taxes, but the IRS still knows ways of making filing painful.
I signed up for MoneyMinder’s 30-day trial (no credit card needed). I was very impressed that MoneyMinder will pull data from the IRS to help set up your nonprofit. Since my fake nonprofit isn’t registered with the IRS, you also have the option to skip that step. The price is only $300/year.
Questions leading into testing:
- Payroll – MoneyMinder seems to be created for volunteer organizations. Most churches and many nonprofits have some payroll. How does MoneyMinder accomodate this?
- Donor Restricted Funds: The chart of accounts is different than expected. I can see how to create bank accounts, but what about liability and equity accounts? Is there another way of tracking the balances for Donor Restrictions?
- Reimbursements: I see this is an option. Reimbursements are such a hassle so how does MoneyMinder address this?
- Capital Assets: I’m really curious if MoneyMinder also allows for depreciation. If I buy or sell a capital asset, how is that accounted for?
In all honesty, I wish I had a client that would want to try out MoneyMinder. An HOA or some other nonprofit that doesn’t qualify for TechSoup’s discount would be an ideal candidate. I would even consider paying extra for MoneyMinder if I was an all-volunteer group because I would likely save money in filing the 990.
Useful Links
- MoneyMinder: https://moneyminder.com/
- 2-Minute Treasurer: https://www.youtube.com/playlist?list=PLVKRo27WpiZZE1ksHYfC2wkbajrFcmQlj