Charitable Uses of Credit Card Rewards

In the wake of the economic crisis and numerous natural disasters, people begin to think more about donating to help others overcome their financial setbacks. During “Hope for Haiti Now” more than $58 million alone was raised through credit card donations. Many of the credit card companies will allow customers to donate their rewards points to other clients. This is a new and convenient way to help those in need.

Citi Card Members

The American Red Cross allows Citi Card Members to donate any Thank You points earned to a charity. Most of these members can donate points in $50 or $100 intervals. Currently, 5000 points are needed to donate $50, and 10,000 points are needed to donate $100. The money will be used to provide relief for disasters, health emergencies and other humanitarian crises around the world. Gift cards are also used to donate cash to clients.

American Express Card Members

AMEX card holders can donate their rewards through the GivingExpress program. This program will allow consumers to donate to any earned rewards program of choice. The program is designed to allow people to earn points on the card for each dollar that is donated. Recurring donations can also be automatically set up for ease of the card holder.

Taxes are a synch with American Express. Consumers can track the donations easily through a program established by the card company. When consumers are ready to file taxes, they simply only have to confirm the donation and print the detailed record for each donation made.

Discover Card Members

American Red Cross also has a partnership with American Red Cross. Using points or the cash back program is a way to donate to charity without ruining your monthly budget. Simply donate the cash that you have not redeemed to the nearest charity.

During the Haiti Relief fund, Discover waived the transaction fees for donations to the following organizations: American Red Cross, Americares, Direct Relief International, CARE USA, Doctors Without Borders, Habitat for Humanity, Mercy Corps, International Rescue Committee, Save the Children, Oxfam America, World Vision and U.S. Fund for Unicef. ‘

Discover has a website where clients can give to their chosen charity. Visit the website at https://discover.justgive.org/index.jsp. Card holders simply enter the charity of choice on Discover’s approved list and click the “Donate Now” button. This will help make donations easier.

Capital One

Capital One also allows its card holders to donate rewards to charities. They allow contributions through the No Hassle Giving Site. The website has nearly 1.2 million charity options for the card holder to contribute. Capital One has one of the most comprehensive websites of any card available.

Other Card Holders

Call the credit card company and request information about the credit card’s giving options. Most credit card companies have at least a few options for donating money. Inquire with customer service for more information.

Donation Tips

Consumers should be aware that when crisis strikes get-rich scams also ensue. Donating through a credit card will minimize the potential for giving to an incredulous charity. Charity credibility may be established through charitynavigator.org, according the the New York Times. Nothing would be more disheartening than losing money to someone when you are trying to help.

Always determine the fees associated with donating to charity and verify that the donation is tax deductible. Tax deductions are a good incentive to give to local charities. Accountants can verify which fees are tax deductible.

Conclusion

While giving is considered favorable in the eyes of most, the act of giving should be done with caution through reputable organizations. Allow your credit card company to help you give in a safe and stress-free manner.