• Skip to main content
  • Skip to footer

Araize

Total Software Solution for Nonprofits

  • HOME
  • PRODUCTS
    • ACCOUNTING
      • GENERAL LEDGER
      • ACCOUNTS PAYABLE
      • ACCOUNTS RECEIVABLE
      • DIRECT COST ALLOCATIONS
      • INDIRECT COST ALLOCATIONS
    • FUNDRAISING
    • PAYROLL
    • FASTFUND ONLINE LT
  • PRICING
    • ACCOUNTING
    • FUNDRAISING
    • PAYROLL
  • RESOURCES
    • NONPROFIT ACCOUNTING COURSE
    • EDUCATION SERIES
    • ADVISOR
    • NONPROFIT ACCOUNTING PRO
  • BLOG
    • ACCOUNTING FOR NONPROFITS
    • NONPROFIT FUND ACCOUNTING
    • FUNDRAISING STEWARDSHIP
    • NONPROFIT PAYROLL
  • LOGIN
  • ORDER

Jun 16 2015

Cloud Nonprofit Accounting Software: What You Need to Know

When choosing cloud nonprofit accounting software, knowing your options can be a life saver. Cloud computing is also known as Software as a Service (SaaS).

Cloud Nonprofit Accounting Software: What You Need to Know - araize.com

What Is Cloud Nonprofit Accounting Software

Cloud nonprofit accounting software is vertical market accounting systems designed specifically for nonprofits. It is not off-the-shelf applications that need countless work-arounds and endless ‘tricks’ to attempt to do accounting for nonprofits.

All of these products are designed to meet the unique requirements of nonprofit accounting, but vary when it comes to functions, features, and equally important, their cost. Another important decision when choosing new software is the method of deployment. When selecting a new application, they can choose from older, traditional on-premises solutions, or newer cloud nonprofit accounting software.

We’re going to focus on the difference in the deployment of cloud products. There are two methods of using software in the cloud. One is the single-tenant hosted and multi-tenant SaaS (Software as a Service). In the single-tenant hosted solution, the application is housed on a server but the software is unique for each customer. Which means if there are one hundred hosted customers, there are one hundred separate installations of the application. Whereas, in a multi-tenant SaaS environment, there is a single version of the software for all its users.

Nonprofit Accounting Course - araize.com


Nonprofit Accounting Course: Learn essential skills to strengthen accountability and avoid costly mistakes. Get in-depth training on fund accounting, budgets, financials and more.


Multi-Tenant SaaS Solution

In a multi-tenant environment, even though all users of the software access the same foundational components, the data and configurations that are specific to a customer are stored in separate and secure folders. All users have access to all of the capabilities of hardware and software, but their data aren’t shared.

When comparing the different software deployment options and the economics for the end users, multi-tenant SaaS solutions often have substantial advantages over the single-tenant hosted solutions.

In a multi-tenant environment, applications are more scalable, resulting in lower costs for the end user. With a hosted solution, vendors must build out their data center to accommodate new customers. In a multi-tenant environment, new users get access to the same basic software, so scaling has far fewer infrastructure and maintenance implications for vendors.

In a multi-tenant installation, it is easier to maximize the performance of the different elements in the technology, so optimum speed and reliability can be ensured at all times. Plus, ongoing maintenance and updates are typically included in the cost of the SaaS subscription, so end users don’t need to pay costly maintenance fees in order to keep their software up to date. When there is a an update or upgrade, the vendor only has one installation of the software, compared to multiple installations in a hosted environment.

Best Ways To Increase Nonprofit Sustainable Revenue - Free Ebook - araize.com


Free eBook Download: How to Increase Nonprofit Revenue Using For-Profit Strategies


Single-Tenant Hosted Solution

In a single-tenant environment, if there is a service disruption, it may affect only one customer, meaning that the vendor might be slow to respond and fail to take the necessary steps to ensure the problem doesn’t recur. In contrast, with a multi-tenant solution, a slight glitch could affect all of a vendor’s customers. It is, therefore, imperative that SaaS vendors invest significant amounts of money and effort into ensuring uptime, continuity, and performance. Having to monitor and administer just one platform, instead of managing different sets of installations for each client, a multi-tenant SaaS provider can deliver more efficient and effective service and support, including troubleshooting and problem resolution. This translates to a more reliable solution for the end user.


Schedule a FastFund Online Demo: Learn more about our unique software approach to nonprofit accounting, payroll and fundraising.


Bottom Line

When comparing new financial software for your nonprofit, you need to compare more than functions and features. You also need to evaluate the underlying economics of different deployment options and choose the solutions that deliver the best value over the long haul.

For a nonprofit organization seeking a reliable, low cost delivery method for their software applications, a SaaS multi-tenant solution will have lower IT costs than a single-tenant hosted solution and can scale over time.

Want to read more? Check out these insightful articles:

  • Functional Accounting: Guide to Classifying Expenses
  • Advantages of Fund Accounting Software for Nonprofits
  • Ways To Keep Your Nonprofit Accounting Data Safe
  • SaaS for Nonprofits
  • Nonprofit Accounting Course: Essential Skills Training
  • Frequently Asked Questions (FAQs)

Did you find this article useful? We welcome your thoughts and comments.

Written by Joseph Scarano · Categorized: Accounting for Nonprofits · Tagged: Accounting Software for Nonprofits, Cloud Nonprofit Accounting Software, Nonprofit Accounting, Nonprofit Accounting Software, Nonprofit Cloud Computing Software, Nonprofit Fund Accounting Software

About the Author

Joseph Scarano is the CEO of Araize, Inc., developers of cloud-based FastFund Online Nonprofit accounting, fundraising and payroll software solutions to help your nonprofit become more transparent, accountable and sustainable.

Reader Interactions

Comments

  1. Lisa says

    February 2, 2019 at 12:22 pm

    I also agree that a SaaS solution is the better option for cloud-based software like intranets, especially for non-profit organizations. The aspect of lower and stable costs is important and gives you time and energy to focus on your actual work.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Footer

PRODUCTS
Nonprofit Accounting

Nonprofit Fundraising

Nonprofit Payroll

FastFund Online LT

EXTRAS
Payroll Calculator

SALES
FAQs

Testimonials

TRAINING
Getting Started

Training Request

Training Webinars

Nonprofit Accounting Course

COMPANY
About

Contact

Support

Partnership Programs

Authorized Partners

Referral Reward Program

LEGAL
Privacy Policy

GDPR Policy

Terms of Use

Security Policy
  • Email
  • Facebook
  • LinkedIn
  • Phone
  • Twitter
  • YouTube

© 2023 Araize, Inc. All Rights Reserved.
Privacy Policy