The Offer
- Gyft is offering 15% off a Charity Choice gift card when you use promo code GIVE
The Fine Print
- Promotion is limited. Promotion is valid while supplies last
- Get 15% off a CharityChoice Gift Card
- Must apply the promo code GIVE at checkout to receive the 15% discount
- Promotion ends at 9:00 PM ET on December 31, 2019 or while supplies last
- Promotion is only eligible for a CharityChoice Gift Card purchased through Gyft
Our Verdict
Gyft doesn’t earn 5x anymore with Chase Ink cards. Charity Choice gift cards give you 1000 charities to choose from to make a donation to. I’m not sure how much actually gets passed on, but I’d hope it was more than 85% of the gift card value so this could be a good way to super charge your donations. That being said I’m unsure how this works as a tax write off.
Hat tip to GC Galore
The math on this didn’t make a ton of sense to me, so I looked through the charitygiftcertificates.org website a bit and found their fees explainer:
“””
CharityChoice Gift Cards are recipient-designated charity gifts: a project of Special Kids Fund (501c3, EIN 58-2550249). Only the gift-recipient is entitled to designate the charity, which he/she may do at any time. If a card is purchased in order to use to donate to a charity, and not given as a gift; then the card-holder may redeem the card. Cards never lose value, nor expire. We always retain a reserve for honoring unredeemed cards. Purchases of gift cards are charity donations, that are 100% tax deductible at the time of purchase; and, as such, are non-refundable.
FEES: The funds are allocated from Special Kids Fund, usually quarterly (4 – 6 weeks following the ending), to the recipient’s designated charity; deducting $0.50 per card [for cards $2 and up]+ 5% administrative fee and 3% credit card processing (used towards management of this nonprofit fundraising program, and towards our mission to benefit special needs children).
Note: Occasionally, a larger than 5% administrative fee may be required; depending upon how the card is purchased and the costs involved, e.g., affiliate marketing.
REWARDS PROGRAMS: 10% total fee deducted for cards ordered through rewards programs (includes all fees, marketing and program expenses).
Please note that unlike for-profit websites and charity portals, CharityChoice is run by a charitable organization with a distinct cause and mission, providing for special needs children. So using our service is worthwhile all around!
SHIPPING AND HANDLING: Physical Cards – $4.95 per order (for any quantity of cards shipped to a single address) for USPS First Class mailing with additional options for expedited shipping available at checkout.
“””
I think I’d think of this mechanism as a way of having most of the value of the gift card donated to your charity of choice and some amount of it being donated to the Special Kids Fund. Someone, maybe Gyft, has to be subsidizing this somewhat.
Right, it looks like Gyft is taking at least a 5% hit since they are paying at least 90% of the face value (according to those terms), but are offering a 15% discount (plus Gyft is paying the card processing fees). A bit weird.
Per the terns, “ CharityChoice Gift Cards is a project of Special Kids Fund (501c3, EIN 58-2550249). Special Kids Fund allocates funds to the selected charities, quarterly. Funds are distributed to each of the designated charities in one payment, as a bulk allocation. Keep confirmation of your charity designation and verification of your order from your rewards program for your records.” You’d be able to take a tax deduction for your donation to Special Kids Fund. It’s basically a donor advised fund, and you trust that funds follows your instructions.
That makes sense when donating directly to Special Kids Fund. I’m still a bit fuzzy, though, on whether it can be deducted when purchasing a gift code from Gyft (or another site) since the funds don’t go directly to the charity. I suppose Gyft is like a go-between, similar to Paypal, and it could be deducted, but it’s a bit different.
I’m curious about the tax angle as well. Maybe an accountant can chime in.
For all but very high income people, tax writeoffs for charitable giving has ended. Only if itemizing deductions works out to more than the new standard deduction (now approximately doubled) would giving to nonprofits have any effect on taxes.
True. Worth noting that some people in high tax states/city get near the standard deduction on their regular income, and then a bit of charity pushes them over the top.
I still give a fair amount and receive no tax benefit. Most people haven’t given in the past based off tax deduction. I think you’d be surprised how few people have itemized historically.
Many people are now itemizing every other year by giving double to charities every other year. This way they are able to make it worth it to itemize in those years, and taking the standard deduction in the years I’m between.