Using a rewards credit card to make a charitable donation is an easy way to earn rewards while helping an organization you support. Many charities accept credit card donations online.
However, it’s worth noting that using a credit card for your donation could result in less money for the charity due to credit card processing fees.
Yes, it’s common for charitable organizations to accept credit card donations through their websites. Depending on the charity or nonprofit organization, you might also be able to make donations through other convenient methods, such as PayPal or Google Pay.
Here are a few examples of charitable organizations that accept donations with a credit card:
American Red Cross
Feeding America
Goodwill
Mayo Clinic
UNICEF
YMCA
Donating to a charity with a credit card is as easy as visiting the organization’s website and navigating to its donation page.
After continuing through the process, you can select your payment method, including a credit card. Often, you can also choose to cover the credit card transaction costs.
The primary factor to consider when making donations using credit cards is how much the charity has to pay in credit card processing fees. In some cases, the charity may also have to pay platform fees for its donations page. These fees could reduce the amount of your donation by 3% or more.
You may have the option to cover these fees during the donation process, or the charity could offer other payment options, such as using a debit card or bank account, without the same fees.
Read more: How do credit card processing fees work?
Pros:
Easy and convenient
May help you earn rewards
You get to support charitable giving
Donations may be tax-deductible
Cons:
Many credit card issuers have rewards programs that provide redemption options where you can donate or use your rewards for charity:
Chase: You can use the Pay Yourself Back redemption option with certain Chase credit cards to cover eligible charges to charitable organizations with your Chase Ultimate Rewards points.
Discover: Some charitable organizations accept PayPal as a payment method, and Discover lets you redeem cash-back rewards with PayPal at select merchants.
American Express: You can donate your Amex Membership Rewards points to different charities using the JustGiving platform.
If your credit card rewards program doesn’t offer a direct way to donate your rewards, consider other methods, such as redeeming your rewards for cash and then making a cash donation. Many cash-back credit cards have various cash-back redemption options you can utilize for charitable donations.
Some charities also accept gift card donations, giving you another option if you can redeem rewards for gift cards.
Yes, but there are a few things to be aware of:
Credit card processing fee: There’s a credit card processing fee for donating to charities in the U.K., U.S., Canada, and Ireland. There are no fee for charities in Australia and New Zealand.
U.K. charity processing fee: There’s a 30 pence charge on top of the credit card processing fee if you donate to a U.K. charity in any currency other than GBP.
International currency fees: Depending on the credit card you use, you might have to pay a foreign transaction fee if donating to an international charity. You can typically avoid this if you use a credit card with no foreign transaction fees.
Platform fees: Some charities in the U.S. and Canada incur platform fees of up to 5%.
Yes, it’s common for charities to get charged credit card processing fees when their donors use a credit card to make a donation. Some charities will charge a donation fee if you decide to use a credit card, which effectively offsets the credit card processing fee they have to pay.
Follow these steps to redeem Chase points for charitable donations through Pay Yourself Back:
1. Make a donation to an eligible charity using your applicable Chase credit card.
2. Log in to your Chase online account and navigate to the Ultimate Rewards section.
3. Choose the “Pay Yourself Back” option.
4. Select an eligible charge and continue through the process to redeem your points toward the charitable donation.
The two primary benefits of donating to a charity using a credit card are:
Convenience and ease
Earning cash back, points, or miles with your credit card’s rewards rate
However, keep in mind that many charities have to pay credit card processing fees, which could lower the amount of your donation by around 2% to 3% or more.
The Charity Charge Credit Card is a business card designed for nonprofit organizations, not typical small businesses. It has no annual fee and runs on the Mastercard network. Responsibly using Charity Charge may help build or establish your business credit history.
To qualify for this card, an organization must have an active 501(c) nonprofit status and either five years in operation and $100,000 in annual revenue or two years in operation and $500,000 in annual revenue.
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