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.
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U.S Bank FlexPerks, 3x Points (4.5% 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 1.5 cents each when redeeming for travel expenses.
Dupage Credit Union Visa Platinum Credit Card – 5x, No Annual Fee, IL only
This card earns 5x points per $1 spent/donated on charities. 10,000 points = $100 meaning this is basically 5% cash back. There are no limits on the amount of points you can earn.
VantageWest Credit Union Connect Rewards Credit Card – 5x, No Annual Fee ($15 Joining Fee), $1,500 Limit Per Quarter (AZ Only)
Card lets you choose one category to earn 5x points in. Unfortunately there is a limit of $1,500 per quarter.
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:
