Anyone ever go for "charity" cards?

[Anonymous]

My wife and I give to a number of charities, including several that specifically combat modern slavery.  Modern slavery is a seriously under-reported issue (factoid: more people in the world are currently in slavery than the entire slave population involved in the 300 years of the Africa->America slave trade).

Yesterday I received a solicitation for the "Freedom Challenge Visa" card, which seems to follow the pattern of other charity credit cards I've seen.  You get some base level of rewards (hard to tell exactly but it seems like <=1% effectively), bonuses toward the charity when you sign up and when you redeem your points toward the charity, and presumably some undisclosed portion of the swipe fees also go to the charity.

Now, I fully trust the charity (it's actually one we already give to), and I have no reason to distrust the bank.  But I wonder, wouldn't I be better off going with a card that gives me 2%, 3% or 5% cashback, collecting some fat signup bonuses along the way, and making one or more tax-deductible contributions to the charity throughout the year?

Thoughts?

Chris.

[Anonymous]

Most of the charity cards have been less than spectacular in my opinion. Most of them are not transparent as to the actual donation amount and the ones that are generally give a really low amount. You'd think that for charity the commerical banks would be willing to do a 5% donation on non-category spend (a la BuyPower?) since they are getting the write-off...

I much prefer to count my cashback myself and donate out of my pocket. Then I know exactly what's going where. Besides, my church doesn't even have its own credit card haha.

[kdm31091]

I definitely think in the vast majority of situations you are better off taking the (usually higher rate) cash back and just donating it yourself.

[mitchblue]

Definitely donate yourself.. Imo.

[longtimelurker]

I agree with the others that it is usually makes more sense to donate yourself, using part of a higher cashback reward to do so.    The niche where it makes more sense is for those that like the automatic nature, you don't have to remember to donate from time to time.

Also, do you get any tax deduction in this sort of scheme?

[ridgebackpilot]

I've spent my entire career in the nonprofit sector. When I worked at World Wildlife Fund, we had a WWF-branded VISA card. But the return was so poor that most of us concluded it was far better to encourage donors to give directly rather than get the organization's credit card.

I'm afraid I agree with the others here: You're better off getting cash back cards and making a straight donation to your favorite charity!

[Anonymous]

Not a charity card but I have donated my cash back to Charities before.

[Anonymous]

Charity cards rarely offer any beneficial help and to echo others' statements, you'd be better off using a cash back card and donating those funds. A lot of times too, it sems that the charity cards don't last long before the charity and bank part ways.