Published on June 16th, 2014 | by William Charles5
Best Credit Card For Charity Donations
According to the National Philapronic Trust the average household contributes $2,213 to charity every year (the median is much lower at $870). This is quite a sizable amount, as I increase my charity contributions I always look for ways to be more efficient.
By using a credit card that earns at a high rate on charity donations, I am able to re-give that additional money to charity. The key is finding a credit card that earns at a higher rate than the charity would pay in credit card processing fees (if you’re unable to do this, you’d be best off just sending the charity a direct deposit donation that is slightly smaller instead). Keep in mind that most charities have successfully negoiated lower than normal processing fees. Anything over 2% should be profitable.
It’s also possible to do some manufactured spending by using charities, we’ll be having a more in depth look at this in the future. I’m sure most of you are already familiar with the method I’m discussing.
VantageWest Credit Union Connect Rewards Credit Card – 5x, No Annual Fee ($15 Joining Fee), $1,500 Limit Per Quarter
Card lets you choose one category to earn 5x points in. Unfortunately there is a limit of $1,500 per quarter.
U.S Bank FlexPerks, 3x Points (6% In Travel), No Limit, $49 Annual Fee Waived First Year
This card earns 3x points on all charity contributions without any limit. These points are only worth 1 cent each when redeeming for cash, but they are worth up to 2 cents each when redeeming for travel expenses (e.g 20,000 points = up to $400 in flights).
If you know of any other cards that earn at a high rate on charity contributions, feel free to let us know in the comments section below.
You can find out what the best card to use is based on a certain category by clicking one of the links below. I hope you find this series useful:
- Drug stores
- Everyday purchases
- Gas stations
- Grocery store
- Office supply stores
- Cards that earn 5% or more cash back