Guide to the best credit cards for nonprofits

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A nonprofit organization is one that has received tax-exempt status from the Internal Revenue Service (IRS), usually because it provides a public service or supports a social cause. This type of company refrains from earning profits for its owners and donates all income (beyond operational expenses) to whatever cause it champions.

But that doesn’t mean nonprofits don’t need their own credit card. Like any other business, nonprofit owners could benefit from having a dedicated small-business credit card they use to keep business purchases separate and simplify expenses for easy filing come tax season.

Beyond these benefits, nonprofit organizations can also use a business rewards credit card to earn cash back while gaining access to important consumer protection perks.

Comparing the best credit cards for nonprofits

The best credit cards for nonprofits are ones with plenty of perks, no hidden fees and generous rewards rates. Check out which cards could be the best fit for a nonprofit organization.

Top cards for nonprofits

Best for large nonprofits

Ink Business Cash® Credit Card

Rating: 4.3 stars out of 5

4.3

• Bankrate's view

  The Ink Business Cash® Credit Card is ideal for nonprofit organizations that have a lot of office bills. This business credit card has a fairly lucrative rewards program with boosted cash back in key business categories. You won’t pay an annual fee, and you can save money with its intro APR on purchases. It’ll be a great pick for any nonprofit owner who needs a line of credit to tackle initial costs interest-free temporarily.

  Major cardholder benefits for nonprofits include fraud protection, free employee cards, purchase protection, extended warranties and auto rental collision damage waiver when you rent a car for business purposes.

• Pros and cons

  

  Pros

  • The purchase intro APR can help new nonprofit businesses get off the ground by stalling interest.
  • It's a good choice for small nonprofit owners wanting a low-cost business rewards card because it has no annual fee.

  

  Cons

  • Boosted rewards are capped at $50,000 spent each account anniversary year which larger nonprofits may exceed.
  • Rewards categories may not appeal to remote-based nonprofits.

Best for simplicity

Ink Business Unlimited® Credit Card

Rating: 4.2 stars out of 5

4.2

• Bankrate's view

  The Ink Business Unlimited® Credit Card is a good option for nonprofits that want to earn flat-rate rewards on business spending. It’s free to hold and earns the same rewards rate on all purchases, making it a great choice for business owners who value simplicity.

  You also get free employee cards, purchase protection, extended warranties, auto rental collision damage waiver when you rent a car for business purposes, roadside assistance and other perks.

• Pros and cons

  

  Pros

  • This card has a good intro APR on purchases and a relatively low ongoing APR.
  • Since it doesn't charge an annual fee, it's a good choice for nonprofits with smaller budgets.

  

  Cons

  • Cards with bonus categories may earn more rewards or cash back.
  • It won’t help much if you need to pay off debt because there's no intro APR on balance transfers.

Best for flexible rewards

The Blue Business® Plus Credit Card from American Express

Rating: 4.1 stars out of 5

4.1

• Bankrate's view

  The Blue Business® Plus Credit Card from American Express lets you earn points in the American Express Membership Rewards program without an annual fee. This means that, once you rack up a stash of rewards, you can redeem points for gift cards, merchandise, travel through AmexTravel.com and even transfers to American Express airline and hotel partners.

  This card will be a great choice for any nonprofit owner looking for flexible, valuable rewards. It also features one of the more simplistic rewards programs because it offers rewards at a flat rate. Plus, it’s Expanded Buying Power feature could let you borrow beyond your credit limit if you need to ramp up your spending temporarily.

• Pros and cons

  

  Pros

  • Its Expanded Buying Power feature could come in handy if you need to spend beyond your credit limit.
  • A hefty annual fee won't offset your reward earnings.

  

  Cons

  • There's no intro APR on balance transfers, making it a poor choice for managing high-interest debt transferred from other cards.
  • Its boosted flat-rate rewards for general purchases has a $50,000 spending cap, which could be restrictive for high budget spenders.

Best for flat-rate rewards

The American Express Blue Business Cash™ Card

Rating: 4.3 stars out of 5

4.3

• Bankrate's view

  The American Express Blue Business Cash™ Card works similarly to the “Plus” version, except it offers cash back instead of Amex Membership Rewards points.

  If you want to earn rewards on everyday purchases, it’s an excellent choice. But if you’re hoping for more flexibility with your rewards, a card with multiple redemption options could be a better option. With this in mind, the Business Plus might be the better pick — especially because Amex Membership Rewards points are worth an average of 2.0 cents per point when used with a travel partner, according to Bankrate’s latest valuations.

• Pros and cons

  

  Pros

  • It features one of the highest flat rewards rates for a business card with no annual fee.
  • Expanded buying power lets cardholders go over their credit limit.

  

  Cons

  • The spending limit for earning 2 percent back can be restrictive when it comes to this card's earning potential.
  • This card features limited cardholder perks compared to other business reward cards.

How to choose the right credit card for your nonprofit

Nonprofits don’t really need the same personal perks or benefits you get with business credit cards that charge annual fees, so you shouldn’t consider cards that charge them — unless you can justify them with your unique situation.

Although plenty of the best cards for nonprofits don’t charge annual fees, this doesn’t necessarily rule out great rewards cards. When it comes to choosing the right card for your nonprofit, you should consider cost, perks, rewards and redemption options .

Factors to consider when picking a nonprofit credit card

Annual fees: To find the right nonprofit credit card, you’ll want to compare options with no annual fee to keep costs low.

Perks and benefits: Keep an eye out for business credit cards that offer consumer protections that could help your nonprofit business. Examples include purchase protection against damage or theft or extended warranties on eligible items that come with a manufacturer’s warranty.

Rewards: Think of the categories your nonprofit spends the most in. As you compare the top credit card offers, you’ll notice that some credit cards for nonprofits offer more rewards in certain categories.

Redeeming rewards: Consider how you can redeem the rewards you earn with your nonprofit card. Ideally, you’ll find a card that lets you cash in your rewards for charitable donations or for cash back you can funnel back into your nonprofit.

Frequently asked questions

• Can a 501(c)(3) organization have a credit card?

  A 501(c)(3) organization can obtain a credit card, and its use should strictly adhere to the nonprofit’s mission to maintain its tax-exempt status. Policies must be in place to ensure the card is used solely for business-related expenses.

• What should be on a nonprofit business credit card?

  A nonprofit business credit card should include features like no fees, rewards programs with rebates and discounts, automatic rebates on travel and fuel, discounts on office supplies and purchase protection.

• What are nonprofits allowed to spend money on?

  Nonprofits can spend money on activities that support their mission, including program expenses for services and staff, fundraising costs, administrative fees for daily operations and compliance and legal costs to adhere to regulations. Responsible spending in alignment with its mission and laws is essential for these organizations, so business cards can help organize these expenses.

What’s next?

Use these Bankrate tools to help you figure out which card might best suit your business needs.

The bottom line

Nonprofit organizations don’t prioritize earning profits, but having a dedicated business credit card can provide numerous benefits. It can help separate business and personal purchases, simplify expenses, provide valuable rewards for business-related purchases and give you a line of credit that can help with ongoing costs.

Comparing and selecting the best credit card for your nonprofit can help streamline expenses and optimize rewards, allowing your organization to focus on its important social cause.]