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.

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

Our review

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)

Our review

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:
    William Charles
  • On June 16, 2014, 09:54

View Comments (20)

  • You may want to update this page to state the VantageWest card is AZ only, as you do in the review.

    I spent the better part of two months looking at this. The compromise I went with was the PayPal card with manual donations via their givingfund. The charities do not pay transaction fees and the card pays the 3% of regular PayPal transactions. There is a couple of asterisks: the model of distribution (technically, the donation is made to the givingfund 501c3, which then passes it along to the charity) and the fact only charities on their roster qualify. It is a broad roster, so that shouldn't be much of an issue, though.

  • I am wondering if anyone has used BoA Cash Rewards or Susan Komen etc credit cards to donate to charity. How much cash-back does one get with MCC 8398? I checked https://www.managerewardsonline.bankofamerica.com/cms/published/root/duo/sharedContent/pdf/cash/CashEng048139Nov2019-0121K_v002_ADA.pdf ; it doesn't list the code is excluded; however, I don't know whether donating online to charity is going to get me 2% or 3% based on the Program Rules document...

    • Donating to helpinghandsforsinglemoms from their website using VW card worked for 5% 8398 MCC but the same MCC failed for School choice az.
      Donating thru benevity website to child crisis gave 3% with boA cash rewards Susan Komen card but directly from child crisis website gave 1% CB!.
      I will update as I find out more...

  • It will depend on personal circumstances and aims, but dedicated charitable broker accounts are something to consider. You can search for "charitable brokerage account" or similar to get some options. Essentially you donate appreciated assets rather than take the tax hit on a sale, all wrapped up in a dedicated account. My father has a ton of Netflix gains that he's liquidating in this way.

  • Not really a credit card perk, but generic giving tip: be sure to check if your employer does any charitable matching. An extra +100% easily overcomes whatever 2% processing charge may be assessed.

    I'm not sure it's manufactured spend if you'd be giving to charity anyway, but yeah, it's a great way to meet minimum spend requirements while meeting your charitable giving goals. If you're worried about the processing fee, just donate 2% more than you otherwise would and consider it a cost of churning. Obviously, any sign up bonus will still be well worth it even if you deduct 2% on the entire MSR (worst case).

    Cheers!

  • Flexperks are only worth 1.5 cents rather than 2 each now. And the card only earns 2x points on charity now. That makes it a 3% card.

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