One Money Design

Have you heard about charity gift cards? I recently learned about them after reading an article from the Consumer Reports Money Advisor.  I’ve heard about giving to charities by making a donation in the name of someone, but had never heard about buying a charity gift card and giving it as a gift. They seem to be gaining more popularity as gifts.

I understand you purchase the charity gift card as you would any gift card.  First determine the amount of money for the donation and then purchase through several different organizations on the web.  Once you give the card, the recipient can then choose from a list of charities to direct the money or gift.  As an example, Network for Good offers the Good Card.

I wasn’t sure about the gift card giving idea at first, but the more I’ve thought about the concept, the more I like it.  But before discussing why, I should mention I don’t support the charity gift card in place of tithing to your local church.  If already tithing, I think the charity gift card can be a great way to stretch your giving.

Why I like the charity gift card

1. It can put someone in the giving spirit.  Someone who isn’t used to giving can understand what it means to give to those in need.

2. It provides flexibility.  Simply giving on behalf of the recipient doesn’t allow that person to choose the charity.   If you ask a friend if you can make a donation in their name, they might politely decline.  With the charity gift card they can choose the organization they most closely associate with or support.

3. It may provide an opportunity to tell someone about your experiences. The person may become curious and want to learn more about your giving beliefs and/or tithing.

4. The giving may provide funds for a charity that might not otherwise receive them.  In other words, this provides a new avenue of giving that could help charities or ministries.

Things to consider before choosing a charity gift card

1. Only the purchaser of the card can claim the deduction on their taxes.  This is commonly confused because the donation has been made by the person purchasing the card. The person receiving the card is choosing or directing the money to the charity of their choice.

2. Their are some fees associated with the card. Most of them do not exceed 15% of the total amount given and appear to be quite a bit less, but this should be kept in mind.   Sure, some might think it’s better to just give the money in the name of the person so money isn’t used for the fees, but again, purchasing the card opens up the above opportunities or benefits.

3. Before choosing a card, check the charity organizations available for donation for that particular card. The list differs based on the card you choose.

4. Always read the terms and conditions before purchasing the card. If they’re not available, don’t purchase the card.

5. Keep in mind their are termination periods for the cards and if not used, most of the time the funds go to the organization which sold the card.  You might communicate this to the recipient.

What do you think about the charity gift card?  Do you have any experiences you can share?

Related Posts:

• Money Margin: It is No Mirage!
• What the Bible Says About Money: Giving Part 2
• What the Bible Says About Money: Giving Part 1
• Christian Giving: When to Give to Christian Ministries
• Happy Thanksgiving and Black Friday Tips (Not What You Think)