I was recently asked regarding how Dynamics GP worked with Not for Profits, Microsoft has a whitepaper specifically for Not for Profit Accounting.
This covers the following modules specifically for Not For Profits -
Encumbrance Management allows obligations for goods, materials, and services that have been ordered but not received can identified and identified as “encumbered.” This module helps prevent overspending by ensuring that total actual expenditures plus related encumbrances (ordered goods, materials, or services) do not exceed budgeted amounts. Purchase orders are “encumbered” if they are under budget or if they are over budget and authorized. Purchase orders that have not been encumbered cannot be printed or received. Get fact sheet here http://www.microsoft.com/en-nz/download/details.aspx?id=31579
Grant Management integrates with Analytical Accounting lets you track accounting transactions relating to a grant, helping to streamline the grant management process and keep a closer eye on daily transactions and expenditures. Integration with Analytical Accounting also lets you create budgets for grants and other transaction dimensions. For example, Grant Management ensures that a transaction is within a grant’s start and end dates and the transaction is within budget. Get Grant Management fact sheet here - http://www.microsoft.com/en-au/download/details.aspx?id=31725
Control Account Management enables companies to operate one general ledger account while also to keeping track of payables per segment ID, where each segment is associated with a different department, fund, or program. Control Account Management can automatically redistribute payables control account balances based on the segment ID of each expense account.
Interfund Management reconciles accounts that are in different companies or divisions. With Interfund Management, “due to” and “due from” transactions automatically are created to help you keep individual fund accounts in balance. When general ledger transactions are posted, they are analyzed to determine if the effects on each fund are balanced. If entries are needed to keep the fund accounts balanced, they automatically are generated. Interfund Management can designate any segment of a Microsoft Dynamics GP account number as the “fund” segment.
In addition, if you are using Workplace - WorkPlace Encumbrance Management interface makes WorkPlace Requisition compatible with the Encumbrance Management functionality in Dynamics GP.
In his book Microsoft Dynamics GP 2013 Financial Management Ian Grieve covers Encumbrance Management in a detailed chapter.