Personal Finance

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

  • Last Updated:
  • Aug 24th, 2012 8:59 am
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Deal Addict
May 4, 2010
1226 posts
6 upvotes

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.
6 replies
Deal Addict
User avatar
Aug 18, 2008
2300 posts
363 upvotes
Ottawa
Was treated as a purchase for me in the past.
Deal Expert
User avatar
Jun 14, 2003
23140 posts
177 upvotes
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
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Stay hungry, stay foolish.
Deal Fanatic
Feb 17, 2007
5037 posts
1275 upvotes
No and you'll get whatever cashback/points your card hands out. Give with confidence ;)
Newbie
Mar 31, 2010
21 posts
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 :-)
Deal Addict
User avatar
Sep 4, 2005
2168 posts
236 upvotes
Toronto
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?
Newbie
Nov 9, 2010
60 posts
9 upvotes
Richmond
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.
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