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The bottom line. You certainly can donate to charity by putting it on your credit card. Just be aware that the charity won't get the full value. If you can write a check instead, they'd appreciate it.
Credit card processors charge a fee for the service that is usually a percentage of the transaction. Assume that someone gives your organization $100 and the processor charges a $3 fee. You would record the $100 in your donor database and accounting software as revenue (donation Income).
How To Set Up Credit Card Processing For Nonprofits In-person. ... Online. ... Mobile. ... Set up automatic recurring donations. ... Maintain an online donor database. ... Provide donation opportunities at every point of contact. ... One integrated solution. ... A dedicated merchant account.
Just like donations made by cash or check, credit card donations to qualifying charities may be tax deductible. So, if you itemize deductions on your tax return, keep accurate records of your credit card donations to support your tax return.
(That's where the "convenience" fees typically come from when you use a card to pay taxes or utilities.) So, when you make a donation to a nonprofit with your credit card, the nonprofit then has to pay the credit card processing fees. In real terms, this could mean they really only see $97 out of every $100 you donate.