How to donate credit card points to charity
Quick insights
- Some credit card issuers may allow you to donate your rewards directly to select charities.
- You may also consider redeeming points for cash back and then donating that money to a cause of your choice.
- Donating points directly typically doesn't offer a tax deduction, but donating cash back might.
If you want to support a good cause and have a rewards credit card, you might have an alternative way to give. Some credit cards let you donate your rewards to charity, allowing you to support causes you care about while managing your monthly budget. Let’s learn more below.
Can I donate credit card rewards to charity?
You might find yourself wanting to contribute to a cause, like a local animal shelter or a national health organization, but you're also focused on managing your everyday expenses. Donating your credit card rewards to a non-profit could be a helpful alternative.
Using your rewards to make a charitable contribution can help you support organizations you care about while managing your budget.
Some credit cards offer ways to stretch the value of your contributions. For example, if you have the Chase Freedom Unlimited® Credit Card or Chase Freedom Flex® Credit Card, you might consider charging the donation to your card and then using Pay Yourself Back® to redeem your points for a statement credit. Alternatively, if you have a lot of travel rewards, some airline and hotel loyalty programs also let you donate your points and miles directly to partner charities.
How to redeem credit card points for charity
If you decide to redeem your rewards for a charity, credit card issuers will typically have built-in platforms that let you donate directly from your account.
Here are the general steps you might take to donate your points:
- Sign in to your account: Log in to your credit card issuer's website or mobile app and navigate to the rewards portal.
- Look for the donation option: Search for a "donate" or "charity" category within the redemption options.
- Select a charity: Browse the list of approved charitable organizations and choose the one you want to support.
- Choose your donation amount: Enter the number of points you wish to donate. The portal typically shows you the cash value of those points.
- Confirm the transaction: Review the details and submit your donation.
When you donate directly through an issuer's portal, you're usually limited to the specific charities they've partnered with. If your preferred local charity isn't on the list, you might consider exploring other methods.
The cash back option
If you want to support a charity that isn't listed in your issuer's portal, there's an alternative approach. You may be able to redeem your rewards for cash back and then make a direct cash donation to the charity.
You might choose to receive your cash back as a direct deposit into your bank account or as a statement credit. If you choose a statement credit, you are then able to use your credit card to make a cash donation to the charity, and the statement credit will be applied to your balance.
If you use your credit card to donate online, it may help to make sure you're on a safe website. You can usually spot this by looking for "https" and a padlock symbol in your browser. It might also be a good idea to avoid sharing your card information over email or on suspicious sites.
When it comes to taxes, you may wish to consult your own tax professional for information specific to your financial situation.
Potential advantages of donating rewards
Before you decide to donate credit card points to charity, it may be helpful to weigh the potential benefits:
- No out-of-pocket cost: You can help support a cause without spending additional money.
- Streamlined process: Donating through an issuer's portal is often quick and efficient.
- Putting unused rewards to work: If you have points sitting in your account with no planned use, donating them can be a meaningful option.
Potential disadvantages of donating rewards
You might also consider a few potential downsides:
- Lower point value: Sometimes points are worth less when redeemed for charity compared to travel or other options.
- Limited choices: Direct donation portals only feature select partner charities.
In summary
Donating your credit card rewards can be a meaningful way to support organizations you care about while managing your budget. Whether you donate points directly or redeem them for cash back first, your everyday purchases can help make a difference. You might consider checking your credit card's rewards portal to see what options are available.
JPMorgan Chase and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting professionals for information specific to your financial situation.
