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Credit Card Controls for Charities
One of the functions of the Charities Regulator is to promote compliance by charity trustees
with their duties in the control and management of charities. One issue that arises on a
regular basis in the Regulator’s interaction with charities is oversight of the use of credit cards.
Charities should have a written credit card policy that sets out the reasons why the charity
needs a credit card in the first place, and also sets out the controls and procedures in place
to manage the use of a credit card. This will protect the charity’s finances and reputation, and
ensure that public trust and confidence is maintained in the charity.
The Charities Regulator has set out below some of the key controls for credit card use that should be included in a credit card policy:
• The reasons why a credit card is needed by the charity should be recorded.
• The spending limit as approved by the charity trustees.
• A schedule of all credit cards held by the charity to include the name on the credit card, the
credit card number and security details, the spending limit on the credit card, the expiry
date, and the address where credit card statements are sent.
• The process of authorisation for obtaining a new credit card or renewing a credit card, and
the process for cancelling a credit card that is no longer needed.
• A list of the authorised users for the credit card.
• Spending limits for each credit card user. Each credit card user should have a limit that is
appropriate for their typical expenditure levels.
• The location where the credit card should be securely stored when not in use.
• The process for getting approval for a credit card payment.
• Details of the type of payments that are permitted, and the type of expenditure that is not
permitted (see below).
• Security measures to be taken when using the credit card for online or telephone payments.
• The process for recording each credit card payment and the documentation required to
back up each payment.
• The process for reviewing and signing off credit card statements – it is particularly important
that the person reviewing credit card statements is not the same person who uses the
credit card.

For example, employees’ credit card expenses should be approved by their
manager or the CEO; senior management’s credit card statements and supporting receipts
should be reviewed by a member of the Finance Committee or Board of Trustees on a
periodic basis.
Charities Regulator 2
• The process for reporting on credit card expenditure to the charity trustees as part of their
regular review of the finances of the charity.
• The circumstances when a credit card should be cancelled for example when it is no longer
required, or when one of the signatories is no longer with the charity.
• The consequences for the improper use of the credit card.
The charity’s credit card policy should be communicated to all charity trustees and staff who
use the credit card. It is important to enforce the credit card policy for all card users, regardless
of their position within the charity.
Examples of the type of credit card expenditure that should be prohibited include, but are not
limited to:

• Cash advances/withdrawals;
• Items or services for personal use;
• Expenses incurred by a spouse, family member, or other connected person;
• Alcoholic beverages;
• Fuel for privately owned vehicles; etc.

This document should be read in conjunction with the Charities Regulator’s ‘Internal Financial
Controls Guidelines for Charities’ which provides guidance for charity trustees on developing
and implementing internal financial controls within their charity.

Source: Charity Regulator

If you require any assistance in the writing of your credit control policy, or any matters related to your business accounts, please don’t hesitate to contact us here at McMahon and Co.!