Posted by William Charles on June 16, 2014
Credit Cards

Published on June 16th, 2014 | by William Charles


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

Our review

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:

5 Responses to Best Credit Card For Charity Donations

  1. bookaunt says:

    I make charitable donations through Capital One’s No Hassle Giving Site which (when using a Capital One credit card) covers the transaction fees and I still get my usual reward rate.

  2. Tim says:

    Might be time to re-visit a post like this!

    Check out FM’s post today about Gift of College. Looks like it may code as charity for a Flex Perks card (3x) and you can pay towards a college 529 plan (nice for people with teenage kids) but you can also payoff student loans from many big lenders! I’ve been a FlexPerks fan for a while, and this could be a great opportunity for people with big loans or future college costs. I’m sure a lot of people who took advantage of the recent Olympics bonus could find some use in an update if ya’ll have time.

    Thanks as always for a great site.

  3. Pingback: Recap: Funding College Savings With Credit Card, New Park Hyatt & More - Doctor Of Credit

  4. Crisco says:

    No big deal but the ranking is off. The US bank cash + is the clear empirical winner here. Considering $6000 maximum category spend on an annual basis is nearly 3x greater than the average and more than 6x greater than the more realistic median annual amount spent per household on charity. Even when you factor for the “downside” of $1500/quarter that’s still nearly double the annual basis median.

    Despite that minor detail, great job with the site. It’s the best on the web.

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