This news article explores the increasingly popular practice of donating credit card rewards to charity, highlighting various methods and participating issuers. It emphasizes the ease and impact of this form of giving and provides actionable information for readers wanting to contribute to their favorite causes using accumulated rewards points and miles.
Key Takeaways:
- Transform Unused Rewards into Charitable Donations: Learn how to convert your credit card rewards points and miles into meaningful donations to nonprofits, maximizing the value of your existing rewards.
- Multiple Issuers Offer Direct Donation Options: Discover which major credit card companies – including American Express, Discover, and Chase – allow for direct charitable donations through their rewards programs, simplifying the process.
- Alternative Methods for Chase Cardholders: Understand that, while Chase doesn’t directly support charitable donations of Ultimate Rewards points, a workaround involving the Pay Yourself Back feature allows for indirect contributions.
- Unlock the Power of Airline and Hotel Loyalty Programs: Explore the potential of donating airline miles or hotel points to select charities through your preferred loyalty programs, adding another avenue for giving back.
Donating Your Credit Card Rewards: A Simple Way to Give Back
The holiday season is a time traditionally associated with generosity, but did you know that your unused credit card rewards can be a potent way to make your generosity go even further? With both Giving Tuesday (December 3rd) and Small Business Saturday (November 30th) approaching, there’s no better time to consider the power of donating your credit card rewards. This isn’t just about contributing financially; it’s about leveraging existing assets to directly support the causes you care about, making a tangible difference in your community and beyond. Instead of letting those points and miles gather digital dust, consider transforming them into tangible support for nonprofits working to address critical issues in your community or nationally.
The Evolving Landscape of Charitable Giving
Traditional forms of giving remain crucial – online donations and in-kind contributions of food and clothing are invaluable. However, the addition of credit card reward donations offers a novel and effective way to boost the impact of your charitable efforts. As more companies recognize the value of charitable giving and partner with nonprofits, the options for leveraging credit card rewards for worthy causes increase accordingly.
How to Donate Credit Card Rewards to Charity
Many credit card issuers have established partnerships with charitable organizations, thereby creating streamlined channels for donating accumulated rewards. These programs significantly simplify the process, often allowing direct redemption of points or miles towards a specific charity through your online account. This eliminates the need for complex transfers or other intermediaries.
American Express: Expanding the Scope of Giving
Amex cardholders with Membership Rewards® points, earned through cards like the American Express® Gold Card or The Platinum Card® from American Express, have access to a vast network of charities. Through a partnership with JustGiving™, Amex members can donate to over 1.5 million registered U.S. nonprofits. One Membership Rewards point is equivalent to 0.7 cents in charitable donations. This simple conversion allows for flexible contributions, regardless of the total number of points accumulated.
Discover Card: Supporting a Range of Causes
Discover cardholders, using cards like the Discover it® Cash Back or Discover it® Miles, can directly donate their rewards to a variety of partner charities and nonprofits. The list of supported organizations typically includes well-known national names such as the American Red Cross, the American Cancer Society, and Make-A-Wish, offering diverse avenues for targeted support.
Chase: A Creative Approach to Charitable Giving
While Chase doesn’t offer direct donation options for Chase Ultimate Rewards® points, they provide a clever alternative. By using your Chase Ultimate Rewards card (like the Chase Freedom Unlimited® or Chase Sapphire Preferred® Card) to make a donation to an eligible charity, such as Habitat for Humanity or Feeding America, you can later use the Pay Yourself Back feature. This lets you redeem your points for a statement credit, effectively recouping your donation. While this is not a direct donation, it provides flexibility to support specific causes. Keep in mind, the Pay Yourself Back benefit ends December 31st, 2024. Additionally, using Pay Yourself Back provides increased value where points are worth 25% more (50% for Chase Sapphire Reserve® cardholders) making your charitable contribution go even further.
A $25 charitable donation traditionally requires 2,500 points. With Pay Yourself Back, this could cost as little as 1,667 or 2,000 points, depending on your specific card.
Airline and Hotel Charitable Options: Expanding Your Giving Potential
If your rewards portfolio includes airline or hotel loyalty points, you still have avenues for charitable giving. Co-branded airline or hotel cards often require utilizing the specific brand’s loyalty program to redirect points towards charity. For instance, Alaska Airlines partners with various organizations, including The Nature Conservancy, while Delta Airlines enables mile donations to a handful of partner charities such as Habitat for Humanity. The redemption processes vary across each brand, so consulting the associated loyalty program website is critical.
Why Trust CNBC Select’s Advice on Credit Card Rewards?
CNBC Select is committed to providing high-quality, unbiased guidance on consumer financial matters. Our credit card guides are meticulously crafted through rigorous reporting by experts in the field. While CNBC Select does earn commission from affiliate partners, our content remains entirely independent, upholding our journalistic integrity and ethical standards assuring transparent and reliable information to our readers.
This article reflects the collective insights of CNBC Select’s expert team. We encourage readers to explore the specific terms and conditions associated with their chosen credit card and loyalty program before proceeding with charitable donations. Remember, responsible financial management ensures that charitable giving complements a well-structured financial plan.