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Best HR Software for Nonprofits

Best HR Software for Nonprofits

Best HR software for nonprofits

A strong and reliable HR department is at the heart of a successful organization in any industry. However, what this HR team does can vary greatly depending on a company’s size, budget, and goals. This is particularly true with a nonprofit, which has different needs and limitations than a for-profit company.

Unlike a profit-focused business, nonprofit organizations are mission-driven and have to deal with donors, grants, fundraising, managing volunteers, and unique compliance requirements (such as following nonprofit labor regulations). Thankfully, the best HR software for nonprofits can help manage all this, streamline personnel management, and more.

HR software comes in all shapes and sizes. To find the most suitable HR for nonprofits that provides everything a nonprofit needs and avoids wasting money on unnecessary features, it’s essential first to do in-depth research.

Best HR software for nonprofits in 2025

Paycor

Editor's rating:
Run payroll as needed
Saves time and reduces errors
Employees access wages anytime
Avoid penalties and stay compliant

GoCo

Editor's rating:
Simplifies HR benefits setup
Streamlines HR processes
Empowers team with access
Help when you need it

BambooHR

Editor's rating:
Stay aligned with regulations
Smooth employee transitions
Understand workforce better
Make data-driven decisions

ADP

Editor's rating:
Grows with your business
Works with existing systems
Manage HR on the go
Expert help when needed

Paycor

Editor's rating:
Starting price: $99/mo
Main features
  • Run payroll as needed
  • Saves time and reduces errors
  • Employees access wages anytime
  • Avoid penalties and stay compliant
  • Unlimited payruns
  • Automated payroll
  • On-demand pay
  • Trustworthy tax compliance
  • High subscription price
  • No refunds
  • Unresponsive email support
Summary
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On the market since 1990, Paycor is a cloud-based solution designed to help businesses with payroll processing, HR and workforce management, and benefits administration. As a human capital management service, Paycor stands out as an all-in-one platform where companies recruit, onboard, and set up payments for new hires.

The platform provides businesses with greater access to their payroll process, allowing them to ensure all payments are accurate, compliant, and on time. Prices start at $99 plus $10 per employee each month, with setup fees occasionally waived. All plans include multiple payment options, employee self-service, and unlimited payruns. Also, the software can be tested for free for 14 days, so administrators can have a glimpse of how much time and hassle they can save if they trust Paycor with their payroll.

Special offers
View offers
50% off the first year with Paycor
No setup fees with Paycor
14-day free trial of Paycor
3-month free trial of Paycor

GoCo

Editor's rating:
Main features
  • Simplifies HR benefits setup
  • Streamlines HR processes
  • Empowers team with access
  • Help when you need it
  • Robust benefits management
  • Automated workflows
  • Employee self-service
  • Dedicated customer support
  • Limited customization
  • Learning curve

BambooHR

Editor's rating:
Main features
  • Stay aligned with regulations
  • Smooth employee transitions
  • Understand workforce better
  • Make data-driven decisions
  • Handy compliance tools
  • Streamlined hiring and onboarding
  • Advanced team insights
  • Extensive reporting
  • Cloud-only

ADP

Editor's rating:
Starting price: $10/mo
Main features
  • Grows with your business
  • Works with existing systems
  • Manage HR on the go
  • Expert help when needed
  • Easily scalable
  • Huge number of integrations
  • Useful mobile app
  • Extra HR support
  • No pricing on the website
  • No free trial
Summary
View summary

In a world where time is money, finding the perfect payroll and HR software that relieves businesses of tiresome admin tasks is akin to discovering a pot of gold.

The New Jersey-based company, ADP, has been a leader in the payroll industry for over 70 years, so it goes without saying that the company has a wealth of experience to rely on. With an excellent reputation, ADP emerges as a strong provider for businesses of all sizes.

From customization to automation and unparalleled payroll processing, ADP manages to meet – and exceed – all the needs for payroll software.

ADP’s pricing model is highly flexible, adapting to every business’ specific needs. However, although it excels in flexibility, it falls short in transparency, as the only way to get an estimated price for the software is to reach out to the sales team. Testing the platform via a free trial is also not possible, but a detailed and interactive demo of the platform is available for anyone interested in checking out the software.

Special offers
View offers
3 months for free with ADP
Personalized quote with ADP
Interactive demo of ADP

Main HR differences in profit and nonprofit organizations

For-profit and nonprofit organizations operate with different objectives and distinctive needs that go way beyond their financial structure:

  • Goals: Nonprofits focus on a mission or objective, and for-profits on maximizing earnings for owners or shareholders.
  • Compensation: While nonprofits’ compensation packages are often modest and align salaries with budget constraints, for-profits include performance-based incentives aligned with financial goals.
  • Resources: Nonprofits work with limited resources, dependent on fundraising, grants, and donations to survive, and for-profits rely on profitability and market competition.
  • Talent: Nonprofits prioritize applicants who are passionate and committed to the organization’s goal, and for-profits choose candidates based on skill and experience to ensure profitability and revenue generation.
  • Compliance: Nonprofits face stricter regulatory requirements than for-profits due to tax-exemption status.

HR challenges in a nonprofit organization

Unfortunately, many charitable organizations struggle daily with funding, sustainability, and resource allocation. But these are not the only challenges they face:

  • Recruitment: It isn’t easy to attract top talent since nonprofits can’t offer the same perks as for-profit companies.
  • Global workforce: Nonprofits often have employees and volunteers spread out all over the world, which can be complex to manage.
  • Regulatory compliance: Nonprofits must abide by labor laws and regulations in numerous countries, which are constantly changing and closely monitored.
  • Worker classification: A nonprofit’s workforce is usually made of volunteers, employees, and independent contractors, and each involves different tax, legal, and benefits responsibilities.
  • Payroll management: Tax-exempt organizations with heightened accountability when dealing with payments.

Human resource management in nonprofit organizations deals with numerous challenges that can be overwhelming for a team with few resources, whether that’s because it’s a new company or is just struggling to stay afloat. However, thankfully, HR software for nonprofits can help.

 

nonprofit human resources best practices

Although HR software may be the key to success, it can only make a company shine if best practices are implemented. However, different challenges require different remedies, and many best practices needed are unique to a nonprofit:

  • Transparency: Ensure total transparency regarding the use of donor funds.
  • Ensuring diverse and informed recruits: Aim to have a diverse workforce to serve the organization’s mission better and clearly inform hires about the work and commitment.
  • Talent retention: Ensure employee engagement, feedback, and strategies to boost satisfaction.
  • Proper worker management and classification: Centralized, up-to-date, and easily accessible records with correct worker classification to avoid paying penalties, back taxes, and back pay.
  • Compliance: Stay informed on specific nonprofit legal and tax regulations.
  • Integrate payroll: Merge with payroll software to issue accurate payments.
  • Training: Provide ongoing training and development programs.

 

How nonprofit HR software can help

Thankfully, along with best practices, HR software for nonprofits can help surmount the many hurdles facing a charitable organization. It provides handy tools such as ATS for managing the process from source to recruitment, letting it carefully choose the best personnel possible for any given position. Plus, it assists with writing clear job descriptions and expectations, ensuring applicants understand the required commitment and are appropriate for the tasks at hand.

Additionally, HR software gathers all worker records in one secure and quickly accessible database, allowing them to update and track data easily. Compliance is also tackled with warnings on legal and regulatory changes in the nonprofit sector.

It also uses automation to help with the correct classification and documentation of nonprofit workers. This is often also available for other HR processes, such as payroll. Furthermore, features to track the use of donor funds are frequently included, as well as staff training, feedback, and achievement recognition tools to promote a positive work culture.

 

How to choose a nonprofit HR tool

The first step in choosing nonprofit HR software is knowing your organization’s budget. Thankfully, many solutions offer plans or discounts tailored to nonprofits and often include HR-specific features, such as donor reporting and grant management. Most organizations grow, and nonprofits aren’t an exception, so scalability is also important.

The ideal HR software should be user-friendly, making it possible for a large workforce of volunteers and part-time staff to master it quickly without training. Software that provides a wide choice of integrations is also crucial.

Last but not least, the nonprofit HR service needs to ensure global legal compliance. This is vital for avoiding paying penalties or back taxes, as miscalculating taxes or misunderstanding local regulations could bring about the downfall of the organization.

Most HR software for nonprofits is cheaper because it doesn’t include as many features as the regular kind, making it a cost-effective solution that can have a significant impact. Additionally, many services frequently offer nonprofit-specific discounts and free trials, allowing nonprofits to test the waters before committing to software that can help them streamline their way to success.

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