Did you know that you can donate your unused loyalty reward points to bring down just how much you owe at the end of the year – and the more you give, the more you save. If you have miles or points on a card you know you’re never going to get around to using, it might be time to donate ‘em and actually get rewards you can use, like a lower tax bill in 2014.
Did You Know: Only specific loyalty programs allow you to transfer your points, so choose wisely! We’ll have a quick list later on, so check it out.
Going for a Small Gift
Maybe you have multiple cards with less than $200 worth of miles on them (each can be valued differently, so make sure you get receipts from your chosen charity after you transfer your points!) or maybe you just need a tax write off. It’s the end of the year and it’s just around the corner, so it doesn’t hurt to start thinking about it now.
If you give $0 to $200, you’ll receive a 15% tax credit. Again, you’ll need to make sure that you get a receipt from your chosen charity to prove your generous donation.
Who Lets You Donate Points?
Only select cards allow you to donate points, let’s check them out!
- Air Miles Reward Program
- AIMIA (Aeroplan)
- Esso Extra
- Petro Points
- Shoppers Optimum
- HBC Rewards
- Club Sobeys
Most of these cards are limited to select charities and they may charge you a small fee (anywhere from $20-$30 to $.10 per mile) to transfer the points. You’ll want to also remember that your points can expire in as a little as a year, so it’s good to make a habit of donating those dusty ol’ points at the end of the year.
Did You Know: 92% of Canadians are members of at least one loyalty program? You can actually pass points on to heirs or to charity in most cases, don’t be afraid to ask your card issuer what options are available to you.
Larger Rewards, Larger Write-Offs
If you’re a first time donor giving anywhere from $200 to $1,000 in rewards points, you can earn anywhere from 40% and 54% - but only if this is the first time you’re donating reward points.
Luckily when it comes to donating points, you’ll only be able to donate them to licensed, registered charities. This means you won’t end up getting tricked by some scheme to donate them to a fake charity – though if you’re trying to donate to a charity that isn’t registered, you may be able to work with the card issuer to get it done.
While we can’t help you pick the right charity to donate all those unused, soon to expire rewards points to, we can help you find a beautiful new home or sell the one you’ve outgrown. Give us a call today and see the difference the Goodale Miller Team can make for you!