Give Back While Shopping

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Make the Most of Charitable Giving

Affinity Cards
Affinity cards send a percentage of each purchase to a partner charity. Bank of America's Sierra Club card, for example, donates an undisclosed amount when you open a new account, and 0.65% of each purchase thereafter. "It's a great way for these charities to raise money," says Curtis Arnold, founder of CardRatings.com, a consumer information web site focusing on credit cards. The Sierra Club has generated more than $1 million in donations since it began offering affinity cards in 1986.

But be warned: These aren't the greatest cards out there for many users. The interest rates tend to be hefty — which can easily outweigh any donations accrued if you carry a balance. Take Chase's Y-ME National Breast Cancer Organization card, which gives 1% rebates to fund breast cancer support programs. Most cardholders carry a variable rate of 16.24% or 23.24% — well above the average standard card rate of 13.08% fixed (14.79% variable). (Only customers with superior credit ratings qualify for the 12.24% variable "Elite Pricing" rate.)

Credit-Card Rewards
Most generic credit-card rewards programs (whether you're accumulating points, miles or cash back) can be used for charitable donations. Here's how each option stacks up:

Cash. Looking for a tax deduction with your charitable gift? Look no further than your cash-back card, says Scott Bilker, founder of Debtsmart.com, a consumer information site focusing on credit cards and debt management. "You could easily take that money and write a check to the charity," he points out. The payoff is big for the little extra work of securing a stamp and mailing the envelope. Because you're the one writing the check, your donation may be tax deductible. (Click here for the details on deducting charitable donations.)

A generic cash-back card can also easily beat out most affinity cards for rebates (and potential donations) accrued. Say, for example, you charge $2,500 per month, and want to give back to your local school. Using one of Target's Take Charge of Education cards, you'd earn rebates of 1% for purchases at Target; 0.5% for purchases anywhere else. That's an annual rebate of $162 (and we're being generous here, assuming you spent $200 per month at Target). Or you might use a Discover Platinum card, which offers up to 1% back on all purchases, plus bonus rebates of 5% in rotating "Get More" categories. (Through December, for example, cardholders get 5% back for restaurant, movie, book and music purchases.) Even if you managed to avoid spending in the bonus categories, your annual donation would be $300 — nearly double that of the Target card.

Points. Using reward points to generate a charitable contribution is a good deal — better than getting cash back. (Most points programs allow you to choose either one.) At American Express, 10,000 points is equivalent to an $80 donation to your choice of registered nonprofits; or a $50 AmEx gift card. At Citibank, you'd spend only 3,000 points for a $25 donation to, say, the March of Dimes — and nearly twice that, 5,000 points, for $25 cash back.

Miles. Miles are a little tougher than other rewards to offer up as charitable donation. (It's unlikely that Pittsburgh's City Theatre, which produces contemporary plays, will have much use for them.) United Airlines allows members to donate in 1,000-mile increments to any of 23 partner nonprofits, including Ronald McDonald House, Guide Dogs of America or the American Red Cross. Northwest Airlines sets a base donation of 5,000 miles to its AirCares program, which distributes miles among nonprofits such as Operation Smile and the Big Brothers Big Sisters of America.

Purchases for a Cause
When you buy a (Product) Red 4GB iPod Nano, $10 of the purchase price goes to the Global Fund to Fight AIDS, Tuberculosis and Malaria. Every pink Yoplait yogurt lid you mail in generates 10 cents for the Susan G. Komen Breast Cancer Foundation, and the purchase of a Hurricane Relief T-shirt from Jetty sends 100% of profits to Habitat for Humanity.

Plenty of companies offer products that send all or a portion of profits to charity, a method called cause marketing. Just be realistic about how much you're really giving to the cause. Giving a little back while crossing another item off your holiday list isn't the same as pulling out that checkbook.

Charity Shopping Portals
So-called portal sites let you earn charitable donations in addition to the rewards you'd reap by using a rewards credit card. Here's how they work: You visit the portal site, and from there link to your favorite retailer. When you make a purchase, the site gets a commission from the retailer for acting as a go-between. In turn, that fee is passed on as a charitable donation to your nonprofit of choice. (For more ways to generate a charitable donation with every click of your mouse, see our column Charitable Clicking.) Here are two portals offering the service:

GreaterGood.com: 100% of commissions generated are sent to the nonprofit of your choice. You can also search specifically for products from companies that already give a percentage of their profits to charity.

iGive.com: Depending on the retailer, up to 26% of each purchase will be sent to the nonprofit of your choice. Expect to find higher matches at little-known retailers. Barnes & Noble, for example, offers a rebate of only 2%, while ValueMags.com offers the full 26%.