8 of the best credit cards for nonprofits in October 2024
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Nonprofits have to juggle a lot of expenses. Day-to-day operating costs, larger projects, and fundraising events can make it tough to manage cash flow and track spending.
One way to stay on budget is using a credit card designed for your organization's needs. Nonprofit credit cards offer unique benefits, including specialized rewards programs and waived fees.
If you're wondering whether a nonprofit credit card is right for you, here's a look at the top 8 cards for nonprofits and the pros and cons for each.
What is a nonprofit credit card?
A nonprofit credit card is a business credit card designed specifically for nonprofit organizations. These cards usually offer benefits for nonprofits, such as waived fees or unique rewards.
These credit cards can be used for any of your organization's purchases, which makes them a helpful tool for managing your finances. Like other businesses, nonprofits have expenses like office supplies, special events, and marketing materials. Using a credit card lets you keep track of your spending and make sure you're staying within your budget.
You'll also have access to statements and can easily track your activity online. This can help you catch any potential errors or unauthorized charges before they become a problem.
Because nonprofits are often subject to more stringent spending rules than for-profit businesses, using a credit card can give you more flexibility with your finances. Understanding and making use of your credit card's features is crucial to getting the most out of your account.
Are nonprofits exempt from credit card fees?
Nonprofits are not automatically exempt from credit card fees. However, some credit card providers offer special pricing or waived fees for nonprofit organizations to show their support for their causes.
This also applies to the donations nonprofits receive. Whenever a donation is made to a nonprofit using a credit card, the transaction typically incurs fees charged by credit card processors. These fees are a percentage of the donation amount and may include additional fixed charges per transaction.
What are the benefits of nonprofit credit cards?
It's not always easy for nonprofits to secure funding. This can make it challenging to cover expenses, especially when you're just starting out. Startup costs can be a huge barrier to entry for new organizations.
Traditional funding sources, like grants or donations, can take time. A nonprofit credit card, on the other hand, gives you the flexibility to make purchases and pay your bills on time, even if funding is delayed. This will help you avoid late fees and interest charges which can further strain your budget.
Unlike business loans and other lines of credit, nonprofit credit cards are often easier to qualify for. The application process is simple, and you may not need to provide as much documentation. Plus, you won't be required to pay a down payment or origination fees.
There are several other advantages that come with using a nonprofit credit card. Here are some of the top benefits:
- Waived fees: Waived fees can reduce the cost of using a credit card for your nonprofit.
- Lower APR: A lower interest rate can save your nonprofit significant money over time.
- Signup bonuses: Signup bonuses, such as cashback or rewards points, can help you earn rewards on everyday purchases.
- Mobile access: Mobile access allows you to check your balance, make payments, and track your spending on the go.
- Fraud protection: Fraud protection gives you peace of mind knowing that your nonprofit's finances are protected.
- Specialized rewards programs: Rewards programs give you cashback for things like office supplies or travel. This can help you get more value out of your credit card.
- Virtual cards: Virtual credit cards can be used for online purchases. They help protect you from fraud and allow you to track your organization's spending.
These cards can help you save money on expenses and make it easier to track your spending. This makes nonprofit credit cards a valuable tool in the management of your organization.
Best nonprofit credit cards in 2024
The best credit card for a nonprofit offers a versatile mix of value and usability. Ramp offers its own corporate card, so we’re a little biased about the pros and cons of different cards. But to help you make the best decision for your nonprofit, we'll provide you with as much information as we can on the most popular credit cards for nonprofits.
How credit cards for nonprofits can help your organization
Using a credit card allows nonprofit organizations to build business credit. While nonprofits are required to receive at least one-third of their revenue from public donations, sometimes fundraising isn't enough to finance certain projects.
In those cases, nonprofits look to grants and loans, like nonprofit lines of credit, to fund their expenses. Since nonprofits are considered a high lending risk to traditional banks, due to their unsteady revenue and lack of collateral, it's especially important to have a strong business credit profile to secure proper funding.
Consider Ramp's corporate card for nonprofits
Whether you're a small or large nonprofit, Ramp is committed to helping you find the right financial solution with products—including corporate cards—to help you manage expenses and stretch your budget.
Unlike most business credit cards, Ramp’s corporate cards come with no annual fees and no interest. Our repayment terms mean that you’ll never carry a balance on your card. It’s a good fit if your organization is looking for cashback rewards without any worries about overspending and racking up credit card interest.
Ramp also comes with built-in expense management software. You can be proactive about spending with spend controls at the point of sale and configurable approval workflows to help you enforce your organization’s policies.
FAQs
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- Corporate card and spend management platform
- Free employee cards with custom spending limits
- Cashback rewards on all purchases with no fees
- Built-in fraud protection ensures that your organization's finances are always secure
- Offers an average savings of 5% by identifying cost-saving opportunities
- No annual fees or interest
- Custom spend and vendor controls
- High credit limits
- Automatic receipt matching and expense categorization
- Not available to sole proprietors
- As a corporate charge card, balance can't be carried monthly
- Must have $50,000 in a business bank account to qualify
- $900 bonus after spending $6,000 in the first 3 months
- 5% cash back on office supplies and telecom services (up to $25,000 annually)
- 2% back at gas stations and restaurants (up to $25,000 annually)
- 1% on all other purchases
- Offers 0% intro APR for 12 months
- 3% foreign transaction fees
- The card comes with a welcome bonus
- You can request as many employee cards as you need at no additional cost
- You have to spend $6,000 within the first 3 months after opening your account to qualify for the welcome bonus
- The rewards program can be difficult for some cardholders to navigate
- $25,000 annual limits put a cap on your largest cash-back earning categories
- 1.5% cashback on every business purchase
- $750 welcome bonus if you spend $6000 in the first 3 months from account opening
- Rewards can be redeemed for cashback, gift cards, travel and other options through Chase Ultimate Rewards
- Free employee cards
- Unlimited 1.5% cashback rewards
- 0% intro APR period for 12 months
- Rewards never expire
- No bonus reward categories
- Not the best card for balance transfers
- High foreign transaction fees
- Automatic rebates on recurring costs from more than 200 vendors
- 4% rebates on hotels and dining, 1% rebates on gas, and more
- No personal guarantee needed to qualify
- Organizations need at least five years of history and $100,000 in annual revenue or two years with $500,000 annual revenue for eligibility
- Automatic rebate program
- Purchase protection
- No annual fee
- Must meet stringent qualifications
- 2+ years of business history
- No accounting and software automation
- Business credit card suited for frequent travelers
- Must spend $4,500 in the first 3 months to qualify for the welcome bonus
- Annual fee of $95, which is waived for the first year
- Credit for Global Entry/TSA PreCheck
- Rental car coverage and airport lounge access
- Option to transfer miles to different airline and hotel partners
- Unlimited 2X miles on purchases across categories
- Unlimited 5X miles on rental cars and hotel bookings made through Capital One Travel
- Welcome offer of 50,000 miles
- High $95 annual fee
- No introductory APR period
- Fewer perks than other business cards
- 1.5% cashback on every purchase
- Earn up to 75% more cashback if you have a business checking account with Bank of America
- 0% intro APR for nine billing cycles
- $300 statement credit after you spend $3,000 in the first 3 months
- $100,000 in travel accident and auto rental insurance
- You can use your credit card as overdraft protection for your Bank of America checking account
- Unlimited cashback
- Travel insurance
- $300 statement credit
- Short introductory APR period
- Lower cashback without a Bank of America account
- Balance transfer card that offers 0% APR for nine billing cycles
- You can transfer your high-interest rate from another card to save on interest payments
- Offers unlimited rewards with five points for every dollar spent
- Redeem points for cash back, statement credits, or merchandise
- Cash Flow Insight
- Software integrations
- $200 cash bonus when you spend $1,000 in the first 3 months
- Rewards expire
- Short introductory APR period
- Cashback rewards card with no annual fees and 0% introductory APR
- Flat-rate cashback rewards rate of 2% across categories
- Annual $50,000 spending limit before cashback rewards halve from 2% to 1%
- 12-month introductory 0% APR
- Cash back rewards
- Purchase protection
- American Express isn't accepted at all vendors
- High APR after the introductory period ends
- Spending caps on cashback rewards