Charity affinity cards vs cash back cards

If you want to generate extra income for a charity at no direct cost to yourself, using an affinity credit card is a great way to do it: the donations from the bank all happen automatically, you don't need to do anything other than use the card and you don't have to pay anything to the charity out of your own pocket.

However, if you used a cashback card instead, you could receive back a much higher level of cash than your chosen charity would receive if you used its affinity card. Once you've received your cash back, you could make a direct donation to the charity. If you're a taxpayer, this gift would also qualify for gift aid, enabling the charity to claim back the tax you paid on the amount of your donation - further increasing the value of your gift.

Whether or not this would be a better option depends on two things:

1) how much you would spend on your card each year;
2) all good intentions aside, whether you would actually take the time and trouble to make that manual donation to the charity.

When considering the first point, remember that it's not as simple as looking at the cash back rate compared to the ongoing spend-related donations from the affinity card. Usually, an affinity card also generates an initial lump sum payment to the affinity partner - and sometimes further lump sums over time, over and above the spend-related payments (eg annually). Generally, therefore, you will need to be spending a reasonable sum of money on a cash back card before it becomes the more lucrative option.

When considering the second point, be honest with yourself!

Our opinion? If your main aim is to benefit a particular cause - and that cause has an affinity card - the most straightforward and reliable way to support it is probably to opt for their affinity credit card instead of a cash back card.