A guide to business credit cards for nonprofits
Quick insights
- Nonprofit leaders may benefit from selecting a business credit card that aligns with their organization’s spending habits and mission.
- Features like rewards programs, expense management tools, travel benefits and employee credit cards could help support a nonprofit’s mission.
- Certain business credit cards offer rewards for common nonprofit expenses like travel, office supplies, utilities, dining and shipping.
Nonprofits can face unique challenges, including cash flow management related to funding shortfalls, grants with specific reporting requirements and unexpected costs due to program changes or new regulations.
Some business credit cards offer features designed to help address these organizational challenges, potentially empowering your organization to achieve its mission more effectively. Let’s take a look at some business credit card features that could help support your organization as you serve your community.
Business credit cards for nonprofits explained
You may find a few select credit cards on the market designed specifically for nonprofits. However, nonprofits aren’t limited to these cards and are typically eligible to apply for business credit cards.
While business credit cards are usually created with the needs of small and medium-sized businesses in mind, nonprofits may also benefit from the features of these cards.
4 Credit card features for nonprofits
Choosing a business credit card with features that match your organization’s needs can help maximize the benefits and minimize the drawbacks of this spending tool.
Here are some features you may want to consider as you evaluate business credit cards:
1. Nonprofit-friendly rewards program
Some business credit cards offer accelerated rewards earning potential in specific spending categories. If the rewards program aligns with your organization’s spending habits, you could earn rewards that your organization can reinvest in the mission and the communities you serve.
Some examples of purchases nonprofits might make in common rewards categories for business credit cards include:
- Office supplies: Paper, ink, office equipment or other office supplies.
- Utilities: Phone, internet, cable or other utility services.
- Travel: Hotels, flights and travel-related purchases for conferences, events or outreach activities.
- Dining: Food and beverages for hosting the nonprofit’s events, meetings or retreats.
- Shipping: Sending materials to the nonprofit’s donors, clients or partners.
Let’s say that an international aid organization frequently sends staff and volunteers around the globe to provide healthcare and educational support. By using a business credit card with travel rewards, the organization could earn rewards to help offset travel expenses, allowing the nonprofit to allocate more of its budget toward program activities.
2. Expense management tools
Some nonprofits operate with limited financial and human resources, making expense management challenging. Business credit cards with expense management tools might be helpful. These cards could help you track and categorize expenses, which can aid with financial reporting and tax preparation.
Plus, these tools usually integrate with your existing accounting and expense management software, potentially supporting accurate bookkeeping and adherence to budgetary constraints.
For example, a nonprofit focused on protecting wetlands and wildlife habitats might use their business credit card’s automated expense tracking, receipt capture and customizable reporting features to help comply with a grant’s budgetary restrictions and reporting requirements.
3. Business travel benefits
Some business travel credit card benefits could potentially offset operational costs or boost staff comfort during trips. Travel protection benefits are a feature of some credit cards and offer reimbursement for eligible expenses in the event that things go wrong during a trip.
Select cards offer airport lounge access, which could help nonprofit leaders arrive feeling more refreshed on long trips. However, cards with this perk may charge an annual fee. The annual fee may be worthwhile for nonprofits that travel frequently as part of their operations, including international aid organizations and advocacy groups.
If international travel is essential for your nonprofit, you may want to consider a business credit card with no foreign transaction fees.
4. Employee credit cards
Business credit cards may provide complimentary employee credit cards, which allow employees to make purchases on behalf of the organization. Employee cards can streamline the reimbursement process, and depending on the card, you may be able to set customizable spending limits for each employee. These features could help prevent overspending and improve financial oversight.
For instance, Marcus, the Executive Director of an environmental advocacy organization, has multiple project teams who must purchase equipment and supplies. Marcus authorizes certain staff members to use employee credit cards and also sets spending limits to help to ease administrative burdens and streamline expense management while minimizing the risk of overspending.
Nonprofit business credit cards to consider
If you’re looking for a business credit card, you may want to consider Chase for Business® credit card options. These business credit cards provide varying benefits and opportunities to earn rewards. However, it may be helpful to do your research before applying for a credit card to ensure the one you choose offers the features you need for your business.
In summary
Your nonprofit may want to consider a business credit card if it matches your organization’s spending habits. Nonprofits may benefit from card features like a rewards program, expense management tools, travel benefits and employee cards. These features may help nonprofit leaders manage cash flow, adhere to grant reporting requirements, stay within budget and support their organizational mission.
Some business credit cards offer rewards programs that could allow you to earn rewards on common nonprofit expenses like office supplies, travel, utilities dining and shipping.
