Simple Strategies for Donating As You Shop

Do you ever feel guilty spending tons of cash on Christmas presents, knowing there are many people in the world that could use that money to improve their situation in life? I know I do.

With the upcoming holiday shopping season, Smart Money magazine reviewed several ways we can donate to a good cause while gift buying. Compared to the annual charitable donations we make, these methods are pocket change but the more people that participate, the bigger the result. The article lists 4 different approaches we can use:

1) Affinity Cards
How It Works
Banks partner with a charity and send a small percentage of each purchase made with the branded card to the charity.

Examples
Sierra Club and the National Breast Cancer Organization both have affinity cards.

Things to Consider
If you carry a balance, interest rates on these cards tend to be high.

2) Credit-Card Rewards
How It Works
Any cash back, rewards points, or airline miles you earn on your credit card can be donated to charity.

Examples
Any cash back card will work here. Once you have the money, you can donate it to the charity of your choice. For rewards points, American Express and Citibank will send a check to your charity based on the amount of rewards points you’ve earned. United Airlines and Northwest Airlines partner with charities and allow members to donate miles to the approved nonprofits.

Things to Consider
Rewards points may get you a bigger bang for your buck than cash back. For example, American Express will give you $50 cash back if you accumulate 10,000 points but if you have them make the donation directly, they’ll contribute $80.

3) Purchases for a Cause
How It Works
Known as “cause marketing”, a small percentage of the purchase price goes to benefit a charity.

Examples
When you purchase a red 4GB iPod Nano, $10 of the purchase price goes to the Global Fund to Fight AIDS, Tuberculosis and Malaria.

Things to Consider
Don’t use the excuse that you’re giving back to rationalize buying something you’re craving. If you’re really buying it to give back, the charity would be better off getting a check for the full amount of the purchase rather than a small percentage.

4) Charity Shopping Portals
How It Works
An online portal links to different retailers’ websites. If you make a purchase the retailer sends a commission to the portal, who then donates it to your charity.

Examples
Both GreaterGood.com and iGive.com donate money to your charity if you purchase an item through their website.

Things to Consider
Different retailers offer different commission rates to the portal. If you can buy the same thing different places, check out each company’s rates and buy at the one with the highest.

Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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