Social Good Fund Credit Card Use Policy
Please Note: Expense cards are available for Model A projects only.
PURPOSE
Social Good Fund’s preferred method of payment is through vendor invoices and its business checking account, an approach that is simpler and requires less time for staff. In some cases, primarily for business travel, some goods that need to be ordered online, and some recurring software charges, establishing a credit relationship is not a feasible solution. To address these circumstances, active projects who find they are frequently using out-of-pocket funds for project expenses can apply for an expense card from Social Good Fund. We currently offer two types of cards depending on your project’s balance, cash flow, and spending needs: a PEX card (pre-paid debit card) and a Brex card (credit card). We can offer a limited number of cards to project staff when they travel frequently, or otherwise have an ongoing business need to use an expense card.
ELIGIBILITY
This policy applies to all employees who are assigned an expense card. Senior managers may apply for an expense card. To be eligible, an employee must meet one or more of the following criteria:
- Travel frequently in the course of their duties
- Purchase significant volumes of minor goods on-line or by other methods that don’t allow for credit relationships
- Incur regular frequent expenses of the kind appropriately paid for by credit card
A project is eligible for a PEX card when they have a balance of at least $1,000. A project is eligible for a Brex card when they have a balance of at least $10,000.
LIMITS
If you receive a PEX card, you can load up to $2,000 of your available project funds onto the card. Upon special request, we can add additional funds greater than $2,000 to your PEX card, if needed to make larger purchases.
If you receive a Brex card, you can choose a card limit that works for you (usually $1,000-5,000). We will encumber, or set aside, your chosen card limt from your project balance until the card is closed.
CONDITIONS OF USE
These expense cards:
- May only be used for organizational or project-related business expenses. Charging personal transactions to the expense card is not acceptable under any circumstance. Cardholder transactions will be scrutinized to ensure compliance with this policy.
- May not be used to obtain cash advances. This prohibition similarly extends to cash equivalents such as bank or travelers checks, gift cards, and electronic cash transfers.
- May not be used to pay for services (this complicates the 1099 process). Instead, you will need to request an invoice and upload it through the payment request form on the Member’s Portal.
In addition, you must regularly upload receipts for each and every transaction.
Infractions of the conditions of this policy may result in cancellation of the card and withdrawal of expense card eligibility. The project is responsible for all expense related to the card. In all cases of misuse, Social Good Fund reserves the right to recover any monies from the cardholder.
FUND ACCOUNT REPORTING
If your project has received a grant and has restricted the use of funds to specific activities, you will need to complete a Credit Card Expense Report and identify which purchases are associated with which set of project funds.
Instructions for completing the Credit Card Expense Report:
- Download the expense report form from the SGF website.
- Follow the instructions provided with the form to accurately complete all required information.
- Scan receipts to support each line item on the statement.
- When appropriate, expense reports should be submitted by the 1st of each month.
Timely submission of credit card expenses is a primary obligation of each cardholder. Failure to do so will result in suspension or cancellation of the individual’s credit card.
CARDHOLDER RESPONSIBILITIES
Cardholders are responsible for the following security measures for the use of their card:
- Cardholders must retain transactional evidence (receipts) to support all charges. The acceptable receipt for reimbursements of business expenses is the original receipt.
- Card purchases without receipts are ultimately the responsibility of the user and their project. Failure to provide receipts or credible explanation for the unsupported expenditure could result in suspension or cancellation of the credit card.
- Reimbursement for return of goods and/or services must be credited directly to the card account.
- No cash should be received by the cardholder.
- Lost or stolen cards must be reported and cancelled immediately.
- All employees issued an expense card are in a position of trust as it relates to the responsible use of charitable funds. Improper or unauthorized use of the card may result in the cardholder being held liable for expenditures, legal and/or disciplinary action being brought against the cardholder, termination of card, and/or termination of employment.
DISPUTED TRANSACTIONS
Disputed transactions must be resolved between the vendor and the expense card (whether through PEX or Brex) by the cardholder. The cardholder must notify the expense card immediately for resolution and Accounts Payable should be informed of any disputed charges.
RECORDS MANAGEMENT
All documentation associated with the payment of an expense card will be maintained with Accounts Payable. Receipts, once uploaded by the cardholder, will also be retained in the Accounts Payable files. However, cardholders should also keep copies of receipts and statements for their own records.
CHANGE IN EMPLOYMENT
Prior to termination of employment, the cardholder must submit a Credit Card Expense Report for all outstanding expenses. It is the responsibility of the departing employee and their supervisor to ensure that the account is settled prior to departure. In addition, the card must be surrendered at the time the final expense report is submitted. Because cards are attached to an individual, they should not be passed along to an incoming employee or team member.
ADDITIONAL QUESTIONS
Questions regarding this policy should be directed to the Project Services Team at accounts@socialgoodfund.org