The Nonprofit Success Pack supports three different account models:
Household Account Model
1-to-1 Account Model
Individual (‘Bucket’) Account Model
For NPSP 3.0 and later, the Household Account model is the preferred account model. In this lecture, I show you how to change the Account Model settings in your own org from Household to 1-to-1 Account Model.
I also demonstrate creating 1-to-1 Contacts that automatically create a 1-to-1 Account, which is in essence the functionality of Person Accounts. We then revert our orgs back to the Household Account Model.
I finish out the lecture by installing updates to the NPSP.
What is the Household Account Model? https://powerofus.force.com/s/article/NPSP-What-is-an-Account-Model