Turn Your Points into Purpose: A Simple Guide to Donating Credit Card Rewards

Many Canadians collect credit card points, cash back, or other rewards. Sometimes, though, these valuable points just sit there, unused, and can even, unfortunately, expire. What if there was an easy way to use them for the good of others instead? Donating your credit card points to charity is a kind and simple choice. It helps causes you care about.But, before you make the choice to donate, it’s wise to get a better idea of how it works, what value the charity receives, and if you can get a tax receipt.

In this guide, we’ll show you how to donate credit card points in Canada. 

Quick Look:

• Many credit card programs in Canada, like RBC Avion and MBNA Rewards let you donate points or cash back to charity.
• When you donate, each point usually gives less money than if you used it for travel.
• You might (or might not) get a tax receipt, but it depends on the specifics of the rewards program.
• Donating is a great idea if helping a worthy cause matters more to you than getting the most money for your points.

What Does Donating Points Really Mean?

Donating your points means you turn your rewards into a gift for charity. There are a few ways to do so:

1. Trade points for cash. You can convert your points into cash value, then give that money to charity.
2. Use a "Donate Points" button. Many rewards websites have a direct option to donate points to a list of charities.
3. Donate cash back. If your card gives cash back, you can simply donate the proceeds.

Many banks keep this process straightforward. They will guide you through the steps to complete your donation and offer backend support if you need it.

Donating Credit Card Points

Several major credit card rewards programs allow you to turn your points into charitable donations, making it easy to support the causes and organizations you care about.

Let's look at some examples from:

• MBNA Rewards: You can donate your MBNA Rewards points to a worthy cause through cash back and charitable donations option on the MBNA Rewards site.
• RBC Avion Rewards: You can donate Avion points to approved charities, such as Hope Air, and you’ll usually get about 1 cent of value for each point. However, for some people, using points for travel can give a much higher value.
• Marriott Bonvoy: You can donate your Marriott Bonvoy points to over 20 charities through the program’s “Points for Good” option. This is a simple way to support causes you care about.

Why Donate Your Points? The Good and Bad

The Good Things About Donating Points:

• Helps good causes: Every donation, big or small, adds up and makes a difference for charities.
• It's easy: Programs like MBNA, RBC Avion make it very simple to donate directly.
• Better than losing them: It’s much better to donate points than to let them expire without redeeming them for any value.

The Not-So-Good Things:

• Lower value per point: You often get less money for each point when you donate while travel options or cash back can give you up to twice the value.
• Not guaranteed a tax receipt: You might not get a tax receipt for your donation. Always check this before you decide to give.
• Minimums can apply: Some programs ask for a minimum number of points to make a donation.

When Does Donating Points Make Sense for You?

Donating your points is a good idea if:

• You want an easy way to support a charity you care about.
• The program gives a tax receipt, and you want to claim the tax credit.
• You're okay with giving up a bit of points value for the ease and joy of helping a cause.
• You don't have immediate plans to travel or use your points for anything else.
• The charity you want to support is one of the options offered in your credit card’s rewards program. If not if you get cashback you can donate the cash you receive after.
• You care more about helping a cause than getting the highest cash value from your points.

How to Donate Your Credit Card Points

1. Log in: Go to your credit card company's rewards website.
2. Find "Donate": Look for an option such as "Donate Points" or, for programs like MBNA, "Cash Back and Charitable Donations".
3. Check the value: Use our credit card comparison tool to compare credit cards, then take advantage of our credit card points calculator.
4. Pick a charity: Choose a charity you want to support. If you are looking for a tax receipt, make sure it's a registered charity.
5. Confirm and save: Finish the donation and keep any confirmation emails or screenshots for your records.   

If your credit card program doesn’t offer a direct “Donate Points” option, you can still make a difference. Simply redeem your points for cash back, a statement credit, or a gift card, and then use that value to make a monetary donation to the charity of your choice. This method often gives you more flexibility and can make it easier to support any registered Canadian charity, not just those listed in your card’s rewards portal. Plus, when you donate the cash yourself, you’ll receive an official donation receipt, which may qualify you for a tax credit from the Canada Revenue Agency (CRA). It’s a simple workaround that ensures your points still do good—even if your rewards program doesn’t handle donations directly.

What About Taxes?

Claiming a tax receipt for donating points can be complicated. According to a CIBC analysis, the Canada Revenue Agency (CRA) generally allows a donation tax credit if loyalty points go to a charity and their value can be reasonably determined. It is worth noting that:

• Only some rewards programs provide a tax receipt.
• For you to get a tax credit, the charity must be a registered Canadian charity.
• Sometimes, point donations receive the same treatment as cash for tax reasons.
• Always keep complete records so you can claim any tax credits you are eligible for.

Conclusion

Donating your credit card points is a kind and easy way to help others. Instead of letting points sit unused (or, even worse, expire!), you can turn them into real support for charities you care about. If you don’t plan to travel or use points for things like flights, hotels, or gift cards, giving them to charity is a much better choice. No matter what you decide, think about your goals. Pick the option that feels right for you, whether it’s helping a cause or getting the best value for yourself.