How to donate to charity using loyalty programs

Donating loyalty points to charity is a great way for people to support causes they care about without directly impacting their wallets. Many loyalty programs now offer the option to convert points earned from shopping, travel, or credit card use into charitable donations.

Some loyalty programs partner with a wide array of charities, giving customers the flexibility to choose where their points go. Whether supporting causes like disaster relief, educational programs, or health and wellness initiatives, these partnerships make it easy to donate to a cause that aligns with one's values.

Here's how different loyalty programs incorporate charitable giving and which ones might offer donation options.

How to donate points to charity

Donating loyalty points to charity can be a straightforward process, though the specific steps may vary depending on the loyalty program and online platform. Generally, here's how it works:

1. Identify a participating program: First, ensure that a loyalty program supports charitable donations by reviewing the program’s website or, if one has an account already, logging in to the program's rewards account online.
2. Select a charity: Once it's confirmed that a program donates to charities, browse through the list of available organizations.
3. Choose how many points to donate: After selecting a charity, decide how many points to donate. Be aware of the conversion rates, as some programs require a minimum number of points or convert points into a cash value at different rates.
4. Confirm the donation: Complete a donation through the program’s online platform. This step typically involves verifying the amount and recipient before finalizing the transaction to ensure that everything is correct.

Some loyalty programs have various fees or requirements for donating points, others do not. For example, the PayPal Giving Fund offers an additional benefit of covering transaction fees¹ for the donor when giving in the app or on the PayPal website.

Additional considerations for charity donations

When planning to donate loyalty points to charity, several additional factors should be taken into account to maximize the impact and ensure the donation aligns with personal values:

• Employer matching programs: Some employers offer matching gift programs, which can double the impact of a donation.

• Points consolidation: If participating in multiple loyalty programs, consider consolidating points into one donation. This might involve transferring points to a single program that takes points for charity, allowing for a larger cumulative donation.

• Tax implications: Donating loyalty points may have tax implications, depending on laws in one’s jurisdiction. It’s advisable to consult with a tax professional to understand how donating points might affect tax obligations.

• Charity research: It is wise to opt for charities that are reputable and provide clear reporting on how donations are used, which can enhance trust and satisfaction in a particular contribution.

Potential reasons to donate loyalty points

There can be various benefits when donating, making it an attractive option for many. These include:

• Support a good cause: Donating points allows charitable giving without the need for direct financial expenditure. In other words, it’s a way to make a positive impact using resources one already has.
• Utilize expiring points: Points in some loyalty programs might expire if not used within a certain timeframe. Donating them ensures they go to good use rather than being wasted.
• Personal satisfaction: Supporting a good cause can provide a strong sense of fulfilment.
• Program rewards: Some loyalty programs reward charitable donations with bonus points or other incentives, which can help customers advance to higher tiers or unlock additional rewards more quickly.

Turn loyalty points into positive change

If interested in turning loyalty points into a force for good, exploring rewards programs could be the answer. Many programs, like PayPal Giving, partner with charities to offer an easy, straightforward donation process, helping use points effectively.

Learn more about the PayPal Rewards program.