Your credit card can be a powerful tool for more than just everyday purchases or impulse buys – it can also help you support your community or favorite charity with ease.
Many credit cards are designed to let cardholders channel funds towards charitable causes. For instance, some credit cards donate a small percentage of each purchase to a charity, while others make a donation when you first sign up for the card. As R. Brent Lang, director of the Surrey Foundation in British Columbia, explains, “‘Community’ credit cards return a percentage of the transactions back to the community, which is brilliant.” Credit unions in British Columbia, such as Vancity, Coast Capital, and Envision, have led the way in offering credit card programs that benefit charitable causes.
Even if you don’t have a dedicated charity credit card, there are still ways to use your regular credit card to give back. If you have a rewards card, for example, you can often donate your unused miles or points to a charitable organization. Aeroplan’s Beyond Miles Program allows you to contribute your accumulated miles to charities like War Child Canada and Veterinarians Without Borders. Similarly, Air Miles has a program that lets cardholders donate to charity when redeeming their points.
Aside from the rewarding feeling of giving back, there are also financial benefits to charitable donations, such as tax breaks. Using your credit card for donations makes it easy to track and record your giving. In general, according to Lang, the first $200 donated within a calendar year qualifies for a modest tax credit, with any amounts beyond that potentially earning you a larger tax credit, depending on provincial regulations.
Lang points out that organizations like Habitat for Humanity’s ReStores offer unique opportunities to combine credit card donations with tax benefits. ReStores are shops that sell donated building materials, and when you buy these items with your credit card, the funds go directly to Habitat for Humanity’s projects. Donors of the materials also receive tax receipts, making it a win-win for everyone involved.
“This is a fine social enterprise, both socially and environmentally conscious,” Lang adds.
If you’re looking for other ways to get involved in your community, here are a few ideas – with or without using your credit card:
- Support local businesses by purchasing homegrown or locally made products.
- Consider banking with a credit union, as many offer services that align with community initiatives.
- Hire a student for summer work and mentor them in your area of expertise.
- If you’re a professional, provide pro bono services to non-profits in your community.
- Encourage your employer to match donations to causes that matter to the team.
- Attend local fundraisers, such as community galas or charity events.
- Volunteer your time at places like hospitals, retirement homes, schools, or libraries, all of which can always use an extra hand.
Businesses also benefit from engaging with their local community. Lang suggests that professionals can bill for their time and then donate the payment back to a non-profit, receiving a donation receipt in return. Corporate philanthropy can inspire and unite employees around a shared cause, fostering a sense of purpose that transcends both individual and company goals.
By making thoughtful choices with your credit card and your time, you can play a part in building a stronger, more connected community.
