Credit cards can fund charities, nonprofits

By Emily Starbuck Gerson and Ben Woolsey

Most Americans view credit cards as a means for buying gas, making hotel reservations and gathering frequent flier miles. But did you know that credit cards can fund your favorite charities and nonprofit organizations?

The end the year is the time to consider it, since you must make a donation by the end of Dec. 31 for it to qualify for the current year's tax deduction.

Charitable agencies large and small have opened up to credit cards. Large charities such as the United Way have dramatically expanded their humanitarian reach by letting supporters make pledges through one-time or monthly payments charged directly to a Visa, MasterCard, Discover or American Express credit card.

Other nonprofit organizations, apart from true charities, can also benefit from credit card payments.

Nonprofits and charities can capture donor information for future giving and tax deduction purposes.

Local public radio and television stations let supporters break up large annual gifts into manageable monthly amounts using automatic recurring credit card payments. 

Cash back for kindness?
Depending on the type of card, you can earn airline miles, cash back and other credit card-related rewards on any amount. Credit card issuers consider any charge eligible. 

You can, of course, use your regular card to donate to a variety of charities, but some issuers are creating many special credit cards to support specific charitable organizations.

Meg Stinson, a public affairs specialist with Chase Bank, says that a portion of each purchase made with these "cause cards" is donated to the organization at no additional cost to the cardholder; the bank makes the contribution. Some of the cards even have reward programs.

Chase bank offers cards supporting American Kennel Club, Massachusetts Teachers Association, Milwaukee Symphony Orchestra, National Cattlemen, St. Jude's and Special Olympics. Bank of America issues cards such as the Elton John AIDS Foundation, Habitat for Humanity, American Diabetes Association, The Rainbow Endowment, Make-A-Wish Foundation and Sierra Club. American Express has a card to help fight AIDS in Africa, but it so far it's only available in the United Kingdom. 

Donating points
Another way to donate money with your credit card, Stinson says, is using your reward card to benefit others. 

"Cards such as the Chase Freedom credit card allow users to donate $25 to the American Cancer Society once they have accumulated 2,500 points," she says. If you're feeling generous, donate your reward points to a worthy cause.

One important warning about credit cards and charities: if you notice a small charge on your credit card statement from a charity that you do not remember donating to, it should be a red flag. Sometimes when scammers steal peoples' credit card numbers, they will donate a dollar to charities using the card to make sure that the card is still valid. They hope cardholders will shrug off the charge and not question its origin. If you see that type of charge on your bill, it is a sign that your credit card number could be in the wrong hands. If that's the case, call the issuer immediately and cut off the thief's access to your money. You may be charitable, but probably you aren't that charitable.

To comment on this story, write to editors@creditcards.com.

Published: December 3, 2007

	Three most recent Reward programs, cash back cards stories: Black, white, titanium: Are elite credit cards worth it? – If your credit rating is outstanding, you earn big and spend big, you could win an elite credit card, which provides premium benefits -- at extreme cost ... Credit card issuers shift rewards to 'platforms' – Credit card issuers are increasingly consolidating their rewards programs to allow points shopping across categories for numerous cards ... Do credit card rewards make people spend more? – Study: The allure of credit card rewards is one contributing factor that may lead to increased card debt ...

	CreditCards.com's newsletter Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!