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 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 eight cards for nonprofits and how each can help your organization save money.
What is a nonprofit credit card?
A nonprofit credit card is a business credit card designed 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 often have expenses like office supplies, events, and marketing materials. Using a credit card lets you keep track of your spending and ensure you're staying within your budget.
You'll also have access to statements and can easily monitor 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 utilizing your credit card's features is crucial to getting the most out of your account.
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. Startup costs can be a huge barrier to entry for new organizations.
Traditional funding sources, like grants or donations, can take time. But a nonprofit credit card can give 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 benefits 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 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 credits a valuable tool in the management of your organization.
Top 7 nonprofit credit cards compared
The best credit card for a nonprofit offers a versatile mix of value and usability. When choosing a card, it's essential to consider your organization's needs and spending habits. Check out the top cards in this category to help you find the right one for your organization.
1. Ramp Visa Corporate Card
Ramp's corporate cards are designed to provide organizations with an easy way to manage finances. With Ramp, organizations can earn unlimited 1.5% cashback on all purchases with no fees. You’ll also get a full suite of finance automation tools that make day-to-day expense management pain-free—from accounting integrations to contract negotiations and one-click bill payments.
Additionally, built-in fraud protection ensures that your organization's finances are always secure. And with the ability to restrict spending, you can be sure that your business credit cards are being used wisely.
Best of all, you can use Ramp's virtual card with mobile pay to make purchases and payments on the go. With Ramp’s mobile app, you can easily access your cards and transactions anywhere. So, whether at home or on the go, you can always stay on top of your finances.
Introductory APR: N/A
Interest rate: N/A
Annual fee: $0
Advantages:
- Finance automation tools that make expense management simple
- $0 annual fee
- 1.5% cashback
2. Chase Ink Business Cash
If you're a nonprofit organization, you may be looking for a credit card to help you earn rewards to fund your cause. The Chase Ink Business Cash card offers 0% introductory APR, no annual fees, and bonus cashback.
While 0% APR doesn't apply to balance transfers, this card may be helpful if you need to finance a large purchase. Additionally, the $750 cashback bonus after you spend $7,500 in the first three months may come in handy for funding new projects.
Introductory APR: 0%
Interest rate: 15.49% to 21.49% variable APR
Annual fee: $0
Advantages:
- Chase Ultimate Rewards program
- Up to $750 cash back
- Fraud protection
Disadvantages:
- Balance transfer fees
- Variable interest rates
3. Charity Charge Nonprofit Business Card
If you're looking for a credit card issuer that will give you cashback on everyday expenses, the Charity Charge Nonprofit Business Card is a good option. This Mastercard has automatic rebates on recurring costs from more than 200 vendors. You're entitled to 4% rebates on hotels and dining, 1% rebates on gas, and more.
There's no annual fee for this business card, and purchase protection is included. It's worth noting that you don't need a personal guarantee to qualify (which means less risk to your personal credit). But, your organization needs at least five years of history and $100,000 in annual revenue or two years with $500,000 annual revenue for eligibility.
Introductory APR: N/A
Interest rate: N/A
Annual fee: $0
Advantages:
- Automatic rebate program
- Purchase protection
- No annual fee
Disadvantages:
- Must meet stringent qualifications
- 2+ years of business history
4. U.S. Bank Triple Cash Rewards World Elite Mastercard
The U.S. Bank Triple Cash Rewards World Elite Mastercard offers 3% cashback on eligible purchases like gas and office supplies. Additionally, the rewards never expire so nonprofits can use them at their discretion.
For larger purchases, U.S. Bank also offers 0% APR for 15 billing cycles, making it a great option for balance transfers. The card has other benefits, including a $100 credit for software and a MasterRental car collision damage waiver.
Introductory APR: 0%
Interest rate: 16.24% to 25.24% variable APR
Annual fee: $0
Advantages:
- Extended introductory period
- 3% cash back
- $100 software credit
Disadvantages:
- Balance transfer fees
- High variable APR
5. Capital One Spark Miles for Business
The Capital One Spark Miles for Business credit card lets you earn twice the miles for every dollar spent on eligible purchases. You'll also have access to free employee credit cards. There's a $95 annual fee after your first year.
Introductory APR: N/A
Interest rate: 21.24% variable APR
Annual fee: $95 after the first year
Advantages:
- $500 travel reward
- Emergency travel insurance
- Employee cards
Disadvantages:
- Comes with annual fees
- Good credit history required
6. Bank of America Business Advantage Unlimited Cash Rewards
The Bank of America Business Advantage Unlimited Cash Rewards allows you to earn 1.5% cashback on every purchase. You can boost that to 3% cashback if you have a business bank account with Bank of America.
This card comes with 0% intro APR for nine billing cycles, making it an ideal choice for small businesses planning a significant purchase. You'll also get a $300 statement credit after you spend $3,000 in the first three months.
Enjoy peace of mind with $100,000 in travel accident and auto rental insurance. Plus, you can use your credit card as overdraft protection for your Bank of America checking account. For reliable cashback or an easy way to manage finances, this Bank of America card delivers.
Introductory APR: 0%
Interest rate: 13.74% to 23.74% variable APR
Annual fee: $0
Advantages:
- Unlimited cashback
- Travel insurance
- $300 statement credit
Disadvantages:
- Short introductory APR period
- Lower cashback without a Bank of America account
7. PNC Points Visa
The PNC Points Visa credit card is a balance transfer card that offers 0% APR for nine billing cycles. This means you can transfer your high-interest rate from another card and save on interest payments. The credit card also offers unlimited rewards with five points for every dollar spent. You can redeem your points for cash back, statement credits, or merchandise.
Introductory APR: 0%
Interest rate: 13.24% to 22.24% variable APR
Annual fee: $0
Advantages:
- Cash Flow Insight
- Software integrations
- No annual fee
Disadvantages:
- Rewards expire
- Short introductory APR period
How credit cards for nonprofits can help your organization
As a nonprofit organization, you know that every penny counts towards your bottom line. So why not put your spending to work using a credit card designed specifically for your organization?
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.
Ramp considers your organization's unique needs and understands that not all nonprofits are alike. Learn more about how you can use Ramp to reach your financial goals.
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The Ramp team is comprised of subject matter experts who are dedicated to helping businesses of all sizes work smarter and faster.
FAQs
Like for-profit businesses, nonprofits have credit scores separate from personal credit scores. The credit score of a nonprofit is calculated differently by different credit reporting agencies, but it does take into account payment history and outstanding debt.
Two popular business credit scoring models include FICO Small Business Scoring Service and Dun & Bradstreet's PAYDEX score. PAYDEX indicates an organization's risk of defaulting on payments.
You can use your nonprofit credit score to help you qualify for loans and lines of credit from financial institutions. In addition, a strong credit score can help you negotiate better terms with vendors. Thus, you need to pay attention to your organization's credit score and work to keep it strong.
There are three main ways that nonprofits can accept credit card payments.
Third-party payment processing. This is a popular option since you only need to create a third-party account and add a donate button to your website. Third-party processors include services like Paypal or Venmo. However, there are some downsides to this method. For one thing, Paypal takes a small percentage of each donation as a fee. Additionally, donors will be redirected to Paypal's website when they make a donation. This could disrupt the donation process.
Merchant accounts. A merchant account is an account with a bank or financial institution allowing you to accept credit card payments. Using a merchant account usually includes lower transaction fees. You will also keep donors on your own website during the donation process. Unfortunately, merchant accounts can be challenging to set up. They can also have higher monthly fees than third-party processors.
Your own software. You can develop your own software solution for accepting credit card payments. This gives you the most control over the donation process and requires the most work upfront. If you choose this option, you'll need to find a compatible payment gateway and a payment processor. Developing your own payment solution can be expensive and time-consuming, but it can pay off in the long run.
Nonprofit organizations are allowed to open and maintain one or more bank accounts. Some banks offer accounts with reduced fees as an option for nonprofits.
A nonprofit organization must provide the bank with specific documentation to open a bank account. This can include an Employer Identification Number (EIN), articles of organization, or proof of the organization's tax-exempt status from the IRS.
By law, banks must verify their customers' identities before opening an account. This means you must provide basic information about your organization and its officers. However, once the account is opened, you can manage finances like any other business.
The average interest rate for the top nonprofit credit cards is between 15% and 20%. However, this rate can vary depending on the issuer, the type of card, and the creditworthiness of your organization.
Nonprofit credit cards are still business cards, which often have higher interest rates than personal cards. However, your nonprofit organization may be able to qualify for a lower interest rate if it has a strong credit score.
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