If I make a donation by credit card, would it be considered a cash advance?

Aug 10th, 2012 3:54 pm

#1

bullionaire: Deal Addict; May 4, 2010; 1226 posts; 6 upvotes

Aug 10th, 2012 3:54 pm

If I make a donation by credit card, would it be considered a cash advance?

I want to donate to a charity and they accept credit cards.

I prefer credit cards since they are the most convenient, but I'm wondering if it would be considered a cash advance which begins accruing interest immediately

I use a BMO mastercard, BTW.

Thanks.

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Aug 10th, 2012 4:09 pm

#2

Akitakara: Deal Addict; Aug 18, 2008; 2300 posts; 363 upvotes; Ottawa

Aug 10th, 2012 4:09 pm

Was treated as a purchase for me in the past.

Aug 10th, 2012 4:10 pm

#3

gman: Deal Expert; Jun 14, 2003; 23140 posts; 177 upvotes

Aug 10th, 2012 4:10 pm

bullionaire wrote: ↑
Aug 10th, 2012 3:54 pm
I want to donate to a charity and they accept credit cards.

I prefer credit cards since they are the most convenient, but I'm wondering if it would be considered a cash advance which begins accruing interest immediately

I use a BMO mastercard, BTW.

Thanks.

The answer is no.

Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. -- Will Smith
Growing older is mandatory. Growing up is optional.
Stay hungry, stay foolish.

Aug 11th, 2012 8:49 am

#4

WHO: Deal Fanatic; Feb 17, 2007; 5037 posts; 1275 upvotes

Aug 11th, 2012 8:49 am

No and you'll get whatever cashback/points your card hands out. Give with confidence

Aug 23rd, 2012 11:05 pm

#5

wiggy77: Newbie; Mar 31, 2010; 21 posts

Aug 23rd, 2012 11:05 pm

I do it all the time. I have it set so that certain charities can automatically charge my card each month. Counts as a purchase :-)

Aug 24th, 2012 8:43 am

#6

Super_Chicken: Deal Addict; Sep 4, 2005; 2168 posts; 236 upvotes; Toronto

Aug 24th, 2012 8:43 am

Kind of semi-off topic, but I'm in my early 20's. How does the tax refund work for donating money? I've yet to donate anything, but I'm also trying to save as much as possible. So take me as a greedy saver, I'd assume there is no benefit for me to donate correct?

Aug 24th, 2012 8:59 am

#7

KylerH: Newbie; Nov 9, 2010; 60 posts; 9 upvotes; Richmond

Aug 24th, 2012 8:59 am

http://www.cra-arc.gc.ca/chrts-gvng/dnr ... 1-eng.html

Provinicial follows similar rules, but for simplicity I'll just explain federal:

on the first $200 dollars claimed as donations in any given year, you get back 15%, anything past that you get back 29% on the rest.
IE if i donate $300 dollars, I'll get back 0.15*200 + 0.29*(300-200) = $59 in tax credits

you can also not claim for a couple of years and claim all of your donations at once, but they have to have been within the last 5 years for the donations. As one other poster on here taught me, don't just look at claiming every 5 years, it could be beneficial to claim every 2-3 years if you think time opportunities might be better.