Nonprofit Tools
FreeAgentvsXero

FreeAgent vs Xero for nonprofits

Choose FreeAgent if…

Small UK charities, CICs and social enterprises with simple books

Not ideal for: Charities needing fund accounting or Gift Aid management inside the software

Choose Xero if…

Small and medium charities that want a widely supported, accountant-friendly system

Not ideal for: Organisations that need true fund accounting with built-in restricted-fund reports

FreeAgentXero
Our rating●●●●○●●●●●
PriceFrom £33/month (limited company, ex VAT)From US$27/month (UK: £18/month ex VAT)
Nonprofit offerFreeAgent offers 50% off for registered charities, case-by-case discounts for not-for-profits, CICs and social enterprises, and a free subscription with a NatWest, RBS or Ulster Bank business account.Registered not-for-profits get 25% off Xero's business pricing plans (confirmed on the UK page; Xero describes the discount as global).
TypeSpecialistSpecialist
SuitsVolunteer-run, SmallVolunteer-run, Small, Medium
Available in🌍 AnywhereBuilt for United KingdomBuilt around UK VAT and tax; basic plan elsewhere🌍 Anywhere
Strengths
  • Easy to use
  • Free with some UK business bank accounts
  • Charity discount
  • Very widely used, so accountants and bookkeepers know it
  • Local editions for UK, Australia, New Zealand and US
  • Large marketplace of connected apps
Watch out for
  • No fund accounting
  • Built mainly for small businesses
  • UK focused
  • No built-in fund accounting; funds are handled with tracking categories
  • Plans limit invoices and bills on the cheapest tier
  • Not-for-profit discount must be requested within 31 days of subscribing
Key features
  • Invoicing and bank feeds
  • Expenses and receipt capture
  • VAT returns and Making Tax Digital
  • Bank feeds and automatic reconciliation
  • Invoices, bills and quotes
  • Tracking categories to report by programme or grant

Our ratings: FreeAgent: Simple, popular UK accounting, free with some bank accounts and half price for charities. Xero: Popular cloud accounting with a nonprofit discount in many countries.

General information, not professional advice. Prices and nonprofit offers change and our research is AI-assisted, so confirm with the vendor before you buy. Names and logos belong to their owners. Full disclaimer

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