The first credit card specifically developed for nonprofit organizations is now available nationwide, according to Charity Charge, a public benefit corporation that uses financial technology to empower nonprofits.
The Charity Charge Nonprofit credit card requires no annual fee and offers a 1% rebate directly against the group users’ account balance. Nonprofits can acquire multiple cards with throttled spending limits for its employees, reports Fast Company.
The card “will positively impact nonprofits in your community and nationwide,” said Stephen Garten, Charity Charge’s founder and CEO. “Since August we have been in pre-launch phase, working directly with about 100 nonprofits piloting this first-of-its-kind credit card program for nonprofits. The feedback has been off the charts, and this is something the nonprofit community has desperately needed.”
As Fast Company reports, more than 1.5 million U.S. nonprofits spend $1.8 billion annually, but they’ve always been limited to a standard business credit card or debit card for their expenses.
“Typical business cards require a personal guarantor, adding an awkward layer of liability to whomever signs the paperwork,” Fast Company explained. “Some also have fees, and their reward points structure isn’t ideal for groups that really just need more funds to complete their mission. On the flip side, debit cards are problematic because they take a substantial cash balance if you’re buying things regularly. Plus many don’t have the same level of consumer protection and fraud alerts.”
Charity Charge credit cards are issued by Commerce Bank and managed through Mastercard’s payment network. Any group with at least two years of financial data can apply. The cards are offered at an annual percentage rate of 14.9%, which is several points below the national average, according to Fast Company.
“From today moving forward we are focused on serving as many nonprofits as possible,” Garten said. “I’m filled with so much positivity and optimism and on a mission to change the world.”