- Over 50 per cent of the UK population give to charity
- Consumers should choose the best way to donate to suit them
moneysupermarket.com advises charity givers to choose the best way of making their money work hard when donating to their chosen charitable organisation.
There are a number of options available to those wishing to donate and whether its direct debit, paying in cash, buying goods or event sponsorship, there is always a convenient way to give generously.
One increasingly popular route is through charity credit cards or savings accounts. These are available from many providers in conjunction with a range of charities and aim to have the same features of traditional products, while also providing benefits to a charity, such as a donation being made upon each purchase.
When taking out a charity card, the charity automatically receives a one off payment, after that most providers donate a percentage of everything you spend direct to the charity. For example, the market leading credit card from the British Heart Foundation offers a £50 donation when the card is used for the first time and 35p per £100 spent thereafter. Someone spending £150 per month on their card would net the charity £56.30 over the course of a year.**
Using a Cashback credit card is another way of gaining extra cash to donate to a charity of your choice. By using American Express Platinum Cashback credit card, for every pound spent consumers can gain an extra five per cent cashback**** which pound for pound on spending generates a better return than credit cards. However when comparing Cashback cards to charity credit cards it's worth taking into account the initial donations, as sometimes these will mean the credit card gives a better return. Spending £150 per month on this card would earn £29.25 which can be donated to a charity of your choice.
Peter Harrison, credit card expert at moneysupermarket.com, said: "We have seen from our own poll**** that over 50 per cent of people are still giving to charity regularly despite the recession, but for everyone else that wants to donate, there are certain financial products that can make this easier. Charitable credit cards are an easy way of supporting a worthy cause, as all you have to do is use your card in the normal way. Although rates are competitive, the return to charities can be much smaller than alternative methods of raising funds."
Another way to give is through charity-linked savings accounts, which offer a percentage of the interest to a particular charity, allowing customers to donate as they save. For example, the Poppy Bond from Coventry BS offers savers a competitive rate of 4.3 per cent as well as contributing 0.20 per cent of the balances invested into the bond to the Royal British Legion Poppy Appeal.
Peter Harrison, credit card expert at moneysupermarket.com, said: "Rather like charity credit cards, these linked savings accounts are encouraging consumers to connect with worthy causes. However, whilst you can't argue with the sentiment of donating as you save, consumers should pick their product carefully as not all accounts offer equally competitive rates."
Charity Credit Cards
|
Provider |
Typical APR |
Introductory Offer |
Donation |
|
British Heart Foundation
Credit Card |
15.9% |
0% on balance transfers for 12 months
(3% fee applies)
0% on purchases for 3 months |
For every successful application made, £50 is donated to the British Heart Foundation when the card is used for the first time. 35p per £100 spent on the card is donated thereafter. |
|
Breakthrough Breast Cancer
Charity Card |
15.9% |
0% on balance transfers for 12 months
(3% fee applies)
0% on purchases for 3 months |
£40 is donated to Breakthrough Breast Cancer when the card is used within 90 days of the account opening. 25p per £100 spent on the card is donated thereafter. |
|
UNICEF
Platinum Card |
15.9% |
0% on balance transfers for 12 months
(3% fee applies)
0% on purchases for 3 months |
£20 is donated to UNICEF when the card is used within 90 days of the account opening. 25p per £100 spent on the card is donated thereafter. |
|
NSPCC
Charity Card |
16.9% |
0% for 9 months on purchases and balance transfers
(3% fee applies) |
£20 is donated to the NSPCC when the card is first used after which 25p for every £100 spent is donated. |
|
Cancer Research UK
Credit Card |
16.9% |
0% for 9 months on purchases and balance transfers
(3% fee applies) |
£20 is donated to Cancer Research UK when the card is first used after which 0.25% of all purchases is donated. |
Sourced by www.moneysupermarket.com 09.11.2009
Charity Savings Accounts
|
Provider |
Charity Account |
Rate |
Donation |
|
Coventry BS |
Poppy Bond |
4.30% |
0.20% of the balances invested into the Poppy Bond is donated to the Royal British Legion Poppy Appeal. |
|
Cheshire BS |
Caring for Children |
0.10% |
Cheshire will provide a cash sum to Action for Children based on your savings. |
|
Derbyshire BS |
Ellen McArthur Trust & Rainbows Children's Hospice Account |
0.10% |
For every £100 that is saved Derbyshire BS will donate £1 as long as the £100 is kept in the account continuously for 1 year. |
Sourced by www.moneysupermarket.com 09.11.2009
- Ends -
Notes to editors:
* The Charities Aid Foundation and National Council for Voluntary Organisations published a report in September 2009 on charitable giving in the UK
** Based on £150 per month usage on the British Heart Foundation card with 3% interest free on purchases
*** Based on 5% cashback for 3 months, up to 1.25% thereafter
**** The poll was conducted on moneysupermarket.com between 29.10.09 and 15.11.09 with 929 respondents
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