Nonprofit Business Credit Card: Which one is best for you?
Applying for your first business credit card for your 501(c)(3) can be a daunting task. There are so many options that offer various benefits, and it can be difficult to know whether or not you are making the right choice for your organization. That is why we have decided to lay out the pros and cons of the most popular business credit cards for nonprofits in order to help you make the best financial decision for your nonprofit.
The Charity Charge Business Credit Card
Okay, this is a shameless self-promo. If you are unaware, Charity Charge offers a business credit card tailored to the specific needs of nonprofits. Through partnering with Mastercard, Charity Charge is able to offer unique and competitive benefits. Unlike other cards, the Charity Charge Business Credit Card offers no annual fee, no personal guarantor, and no donation processing fee for yourself and individuals donating to your nonprofit. Additionally, you will receive an annual itemized receipt that allows you to see all of your tax-deductible charges. Your organization will also receive various benefits such as 1% cashback on any donations your organization makes and a free fraud liability program if your card is ever lost or stolen. But, the most unique and beneficial part of the Charity Charge business credit card is that Charity Charge is a social enterprise. We are a company that is founded and run by people who genuinely want the best for your nonprofit. Our customer service representatives work to build a personal relationship with our clients in order to make sure we are doing everything we can fo your nonprofit. If you’re interested in learning more about why nonprofits have chosen Charity Charge, check out their statements here!
Chase Ink Business Cash
Another option for your nonprofit business credit card is the Chase Ink Business Cash credit card. This is a credit card tailored to the needs of small business which are similar to the needs of nonprofits. There are many cashback benefits to this card such as $500 cashback on purchases over $3,000 for the first three months, and 5% cashback on the first $25,000 spent on office supplies, internet, cable, and phone services. Your organization will also get access to the chase rewards program. Chase Ink Cash is also equipped with all of the essential business credit card features such as fraud protection and employee cards. One aspect of Chase Ink Business Cash to be cautious of is their first year 0% interest. The reason to be cautious of this is that once your year-long period is over your APR rate will vary from year to year. Other than this, Chase Ink Business Cash is a very good option for your nonprofit business credit card.
Brex Card for Nonprofits
The Brex Nonprofit Business Credit Card is another card that is designed specifically for nonprofit organizations. While Brex originally began designing cards for tech startups, its nonprofit credit card offers its own set of benefits. The Brex Nonprofit Credit Card functions on a points system. For example, you can get 7x points back on rideshare purchases, 4x points back on travel, 3x points back on restaurants, 1x points back on everything else. When looking at these benefits you can see that these credit card benefits are best for a more established nonprofit that would have expenses such as travel. According to Brex, this card offers higher credit limits than companies such as Chase or Amex. Similarly to the Charity Charge Business Card, the Brex Card also does not require a personal guarantor. We would definitely recommend this card for more established nonprofits (but of course we would rather have you use ours).
Wells Fargo Business Secured
While the Brex Card is better for a more established nonprofit, the Wells Fargo Business Secured Card is a great option for nonprofit leaders that may not have the most established credit score. If you do not have an ideal credit score you most likely cannot qualify for an unsecured business credit card, but a secured credit card is a viable option. The Wells Fargo Business Secured Card is a card that is designed for a small business. It offers 1.5% cashback and one point for every $1 spent. You will also receive 1,000 bonus points for every $1,000 spent per month. This card also has a $25 annual fee, which is fairly low. The reason we suggest this card for a less established nonprofit is because of their low credit limits. Their limits vary from $500 to $25,000. These credit limits would be very low for a nonprofit that would have larger expenses.
Bank of America Business Advantage Cash Rewards Master Card
The Bank of America Business Advantage Cash Rewards Master Card is a great choice for nonprofits because it has very reachable bonuses. With this card, your nonprofit can earn $300 worth of credit when your organization spends $3,000 within 90 days of opening your card. Additionally, you can earn 3% cashback on your choice of a variety of expenses, 2% cashback on dining, and 1% cashback on all other purchases. There is also no annual fee and 0% introductory APR for the first nine billing cycles. This card also offers great security features and online/ mobile access. This card is a good choice, but it would be the best choice for nonprofit leaders who already have an established relationship with Bank of America. This is because if you are already enrolled in the bank’s Business Advantage Relationship Rewards Program you can get even more rewards for your card. For example, loyal Bank of America customers can earn up to an additional 75% reward bonuses on certain purchases.
In conclusion, although here at Charity Charge we do offer a wonderful nonprofit business credit card option, at the end of the day we are here to best serve nonprofits however we can. We hope that this list gives you more guidance on the ins and outs of individual credit card benefits. No nonprofit is the same. Each organization has its own unique set of needs, and this is important to take into consideration when choosing a nonprofit business credit card.
- The Ins and Outs of Nonprofit Credit Card Processing - October 5, 2020
- Grow Ensemble’s Cory Ames on the Charity Charge Show - October 4, 2020
- Livestrong’s Suzanne Stone on the Charity Charge Show - October 1, 2020