Can I use a credit card when donating to charity?
Quick insights
- Making charitable donations with a credit card may help you earn rewards and reach the spending requirement for a new cardmember bonus.
- Some organizations may give you the option to add an extra amount that covers the card processing fee so that they receive your full intended contribution.
- In addition to using your card for donations, some rewards programs allow you to donate your points or miles directly to a charity.
Whether you're supporting a local food bank or a global relief effort, using a credit card is one way you can give back. While this method offers a streamlined way to make charitable donations and earn rewards, you may want to consider how processing fees affect your contribution.
Can I donate to charity with a credit card?
Many nonprofit organizations and charities accept credit card donations through their websites, over the phone or in person. Digital records can help keep track of finances and budget for the year. Note that it may be helpful to research and confirm the legitimacy of the charity so that you’re confident your money is going to a reputable organization. For example, a secure website may include "https" and a padlock symbol in your browser.
How do credit card fees affect my donation?
Credit card processing fees might impact the total amount the charity receives. Banks and payment processors usually charge a small percentage of each transaction to cover the cost of the service.
- Processing fee impact: Some charities pay a processing fee on every credit card transaction. This means if the amount you donate will be reduced by the fee.
- Covering the cost: Some organizations may give you the option to add a small amount to your donation to cover these fees. This helps the charity receive the full intended amount.
- Alternative methods: Charities may accept payment through other methods, such as a bank transfer or mailing a check.
Earning rewards and points for charity purchases
When you use your credit card for a donation, you could earn your usual rewards, such as cash back or travel points. These rewards are calculated based on your total spending, just like when you buy groceries or gas.
While some cards offer a standard 1 point per eligible dollar on donations, other cards may offer higher rates. Using your card for larger donations might also help you reach the spending requirement for a new cardmember bonus. A new cardmember bonus is a reward offered to customers who spend a certain amount of money within the first few months of opening a new account.
Which credit card can I use for donations?
Many major credit cards, including some from Chase, can be used to support your favorite causes. If you're looking for a card that provides extra value when giving, you may want to look at cards with flexible redemption options.
For example the Chase Freedom Unlimited® Credit Card and Chase Freedom Flex® Credit Card allow you to use your rewards in unique ways. Through the "Pay Yourself Back" feature, you might be able to redeem your points to offset eligible charitable donations. When you use this feature, your points may even be worth more than their standard value.
Eligible charities may include humanitarian aid or children's organizations. Redeeming points to cover a past donation can help you support a cause while managing your monthly budget.
Donating my rewards directly
If you have a balance of points or miles that you aren't planning to use for travel, some rewards programs allow you to donate those rewards directly to a charity. This may be a way to help an organization without spending any additional cash out of pocket.
However, you might want to check the value of your points before choosing this path. Sometimes, redeeming your points for a statement credit and then making a cash donation may result in a higher value for the charity. A statement credit is an amount applied to your credit card balance that reduces the total amount you owe.
The bottom line
Using a credit card for charitable giving may be a helpful way to earn rewards and stay organized while supporting the causes you care about. Whether you want to earn points or reach a spending requirement for a bonus, your card can be a streamlined tool. You may want to check if the organization allows you to cover any processing fees to help maximize your impact.
