Travel and Expense Management for Nonprofits

What should a nonprofit look for in T&E software?

Grant rules decide what a nonprofit can charge, and the board and auditors decide what it has to show. Five things matter.

What you need	Why	In ExpenseOS
Grant travel inside the Uniform Guidance	2 CFR 200.475: one method, actual cost or per diem, for the whole trip; lodging and meals within your written policy; airfare at the least expensive unrestricted class unless an exception is documented.	The pack starts airfare at the least expensive unrestricted fare, 21 days ahead when people can, with business or first only on a written reason, and every request is answered before anyone books.
Per diem at federal rates	Without a written travel policy, federal rates apply to travel under federal awards; from 1 October 2026 the standard rate is $113 for lodging and $68 for meals and incidentals (GSA).	GSA's lodging and meals rates for each city and month, with per diem paid at them, the first and last days at 75%, one method for the whole trip.Soon
Each funder's own travel rules	Funders can set their own travel limits in an award.	The pack starts a travel policy for each funder, kept beside your own.
Nothing unallowable charged to a grant	Alcohol (2 CFR 200.423), entertainment (200.438) and fundraising (200.442) are unallowable on federal awards.	Donor and partner meals are their own category, with every guest and the business reason, and each expense is coded to its GL account and cost center, such as a grant.
A record for the board and the auditors	Form 990 Schedule J asks whether you follow a written policy on first-class, charter and companion travel and require substantiation before reimbursing officers and directors.	Every policy change is previewed, confirmed and kept in a controls log, with access, policy and approval reports.

The rules that apply to nonprofits

What each rule requires, and what it means for a travel and expense policy.

Rule	What it requires	What it means for your policy
Travel costs, 2 CFR 200.475 (Uniform Guidance)	One method, actual cost or per diem, for an entire trip; lodging and subsistence within the written travel policy, with documentation when charged directly to an award; federal rates when there is no written policy; airfare at the basic least expensive unrestricted class unless an exception is documented case by case.	Write the travel policy down and use one method per trip.
Alcohol, entertainment and fundraising, 2 CFR 200.423, 200.438, 200.442	Alcoholic beverages are unallowable; entertainment is unallowable unless it has a specific programmatic purpose and is in the award; fundraising costs are unallowable.	Keep alcohol, entertainment and donor cultivation off grants.
Fly America Act, 41 CFR 301-10.135	International air travel paid by a federal award uses US flag carriers, codeshares included, with limited exceptions.	Check the carrier on grant-funded international trips.
Equipment, 2 CFR 200.1 and 200.313	Equipment is property with a useful life over a year costing at least the lesser of your capitalization level or $10,000; cheaper computing devices are supplies. Equipment records are kept, with an inventory at least every two years.	Capitalize at your threshold; tag devices for tracking.
Purchasing, 2 CFR 200.320	Purchases above the micro-purchase threshold, $15,000 under the FAR since 1 October 2025, need price or rate quotations from an adequate number of qualified sources.	Get quotes before a grant-funded purchase over $15,000.
Single audit, 2 CFR 200.501	An organization that spends $1,000,000 or more in federal awards in a fiscal year needs a single audit, for fiscal years beginning on or after 1 October 2024 (it was $750,000).	Keep every grant-funded expense ready for an auditor.
IRS Form 990, Schedule J	Asks whether the organization follows a written policy on first-class or charter travel and companion travel, and requires substantiation before reimbursing directors, trustees and officers. Reimbursements outside an accountable plan are compensation.	Rule out first-class and charter travel in the written policy, and require receipts first.
IRS substantiation, Treas. Reg. §1.274-5	A receipt for every lodging expense, whatever it costs, and for any other travel expense of $75 or more, with the amount, date, place and business purpose.	Keep the hotel bill for every night, and receipts for anything else at $75 and up.
GSA per diem rates, FY2027	From 1 October 2026: $113 a night for lodging and $68 a day for meals and incidentals in most of the continental US, with higher rates in 295 areas and meal rates from $68 to $92.	The federal rate for the destination sets the tax-free ceiling, and the limit on federally billed travel.

2026 market benchmarks for nonprofits

Published figures to measure a travel and expense policy against.

Benchmark	Figure	Source
Federal per diem, FY2027 standard	$113 lodging, $68 meals and incidentals, $181 a day	GSA
Federal meals and incidentals, FY2027	$68 to $92 a day, 75% on the first and last days	GSA
Areas with their own, higher rates	295	GSA
IRS high-low per diem, from 1 Oct 2026	$329 high-cost, $230 elsewhere	IRS Notice 2026-60
Cheapest window to book a domestic flight	74 to 21 days out; about 26% more at 13 to 7 days	CheapAir airfare study, 2024
US hotel average daily rate, 2025	$160.54 a night	CoStar

The nonprofits policy pack

On day one, a company starts from the pack for its industry. This one is for nonprofits and foundations: grant-funded travel at the least expensive fare, federal (GSA) rates for hotels and meals, and funders' own travel rules. Each category starts with a limit and a rule.

Nonprofits pack

Airfare$600 a round tripThe least expensive unrestricted fare, 21 days ahead when you can. Business or first only with a written reason, and a US airline on international flights a federal grant pays for.
LodgingMarket rateEach city's market rate this week with no margin above it, or $113 a night where there's no market data. Ask for a government or nonprofit rate where the hotel extends it to you.
Ground transport$60 a tripTransit first, then rideshare. A receipt over $75.
Meals$68 a dayWhat you spend on nights away, up to the federal standard meals rate, with every receipt. Alcohol is never charged to a grant.
Donor and partner meals$75 a personA fundraising cost, paid from unrestricted funds and never a grant. List the donors or partners and staff who came, and why.
Events and ticketsNo limitNever charged to a grant: paid from unrestricted funds, with a manager's OK first.
Gifts$25 a person a yearThe most that's tax-deductible, and never charged to a grant.
Software$100 a monthAsk for the nonprofit price first. A manager approves any charge over $200, and on a grant, check the budget covers it.
Equipment$1,200 an itemIT approves computers first and tags them. Under $10,000 an item it's a supply unless your capitalization limit is lower, and over $15,000 needs price quotes.
GSA ratesSoonPer cityThe pack's choice: hotels at GSA's lodging rate for each city and month, and meals as a flat daily rate at GSA's meals rate, 75% on the days you leave and return, one method for the whole trip.
Funder travelPer funderA starting policy for each funder: the least expensive fare up to $600 and meals at $68 a day. A funder's own travel rules win on travel it pays for.

Every line is a starting point. Admins change limits on screen or in a sentence, and ExpenseOS shows every change it would make before anything applies. From then on, every request is answered against the policy before the money moves, with the rule named, and anything out of policy goes to a person with the reason.

Questions nonprofits ask

What should a nonprofit look for in travel and expense software?

Travel checked against the Uniform Guidance before anyone books, per diem at federal rates where funders expect it, each funder's own travel rules, donor and fundraising costs kept off grants, and a record the board and auditors can follow. ExpenseOS starts nonprofits and foundations from a policy pack built for that work and answers every request against it, with the rule named.

Can a nonprofit charge alcohol to a federal grant?

No. Under 2 CFR 200.423 the cost of alcoholic beverages is unallowable on federal awards. Entertainment is unallowable too unless it has a specific programmatic purpose and is in the award (200.438), and fundraising costs are unallowable (200.442).

What per diem rates apply to grant-funded travel?

Your written travel policy's, as long as the costs are reasonable and consistent with it (2 CFR 200.475). Without a written policy, federal rates apply: from 1 October 2026 the standard GSA rate is $113 a night for lodging and $68 a day for meals and incidentals, with higher rates in 295 areas and 75% on the first and last days. Use one method, actual cost or per diem, for the whole trip.

Can grant-funded staff fly business class?

Only with a documented exception. 2 CFR 200.475 makes airfare above the basic least expensive unrestricted class unallowable unless that class would mean a circuitous route, travel at unreasonable hours, an excessively long trip, a higher total cost, or a medical need it can't meet. International flights paid by a federal award use US flag carriers under the Fly America Act.

What is the single audit threshold now?

$1,000,000 in federal awards spent in a fiscal year, up from $750,000, for fiscal years beginning on or after 1 October 2024, under the 2024 revision of the Uniform Guidance (2 CFR 200.501).

How does ExpenseOS handle funders' travel rules?

The nonprofits pack starts a travel policy for each funder, kept beside your own, and a funder's own rules win on travel it pays for. Around it: the least expensive unrestricted fare up to $600 a round trip, meals up to $68 a day with every receipt, and donor and partner meals in their own category, paid from unrestricted funds and never a grant. GSA's rates for each city and month, and per diem paid at them, are coming.

Start from the nonprofits pack.

A short walkthrough mapped to your policy: what the pack sets up, what you would change, and how every request is answered before the money moves.

Book a demo →See pricing

Sources

Rules and figures as published on 1 November 2026. This page summarizes public rules and published figures for general information; it is not legal or tax advice.

Travel and expense management for nonprofits