Travel Advance

A travel advance is a pre-approved sum of money provided to an employee or volunteer before they undertake official travel for a nonprofit’s business purposes. This advance covers anticipated out-of-pocket expenses such as transportation, lodging, meals, and incidentals. Recipients must later provide receipts and a reconciliation of actual expenses incurred, returning any unused funds. Travel advances facilitate smooth operations by ensuring personnel aren’t financially burdened while representing the organization. Proper documentation and timely reconciliation are essential for accurate accounting, compliance, and effective financial management within nonprofit organizations.