Thinking of giving money to a charity? You might be better off donating directly.

The sheer cost of administering a gift card program means very few charities produce their own specific gift card. Many of them do have an online facility for you to donate straight to their website and even produce  an electronic receipt and thank you message that you can enclose in your birthday Christmas/ engagement/ wedding card for whomever you’re buying it.

America’s largest non-profit organisation, United Way sells gift cards, while Goodwill has stores across the states, but no national gift card program.

There are four major organisations in the US which let you pick your own charity – Charity Choice, JustGive.org, Network for Good and Tisbest. If you decide to use one of these Big Four, keep in mind that:

* some of your donation gets chipped away in administration and transaction fees

* not all organisations transfer the monies to their charities right away; some pay quarterly

* they don’t last indefinitely: Network for Good’s gift cards expire within 6 months.

* only you, as the gift-card-giver, get the tax break – not the recipient who actually selects the charity

Gift card prices range from $1.49 for Tisbest to $5 for the three others. Charity Choice has 100 charities while Network for Good lists an astonishing 1.8 million charities (who knew there were that many?). Network for Good includes its handling fee within its $5 purchase fee but admin costs range from 3% for card-processing for JustGive to Charity Choice’s $1.85 transaction fee per card, 5% admin fee and 3% credit card transaction fee.

Tags: birthday gifts, Christmas gifts, engagement, gift cards, wedding gifts

This entry was posted on Wednesday, February 3rd, 2010 at 1:55 am and is filed under Christmas gifts, birthday gifts, engagement gifts, gift ideas, wedding gifts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.