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Donating your unused loyalty reward points is an easy way to bring down your tax bill, and it won’t cost you a dime.
The federal government rewards those who give to charity with a tax credit: 15% on donations under $200 and 29% on larger gifts. But credits jump to 40% and 54% for first-time donors giving between $200 and $1,000. While most Canadians donate cash or stocks to earn these kinds of tax breaks, you can also get a tax receipt for donating your Air Miles. Other popular loyalty programs like Aeroplan, Petro-Points, Shoppers Optimum and Club Sobeys also make it easy to donate to charities, but you won’t get a tax receipt. For Air Miles members, gifting travel points to charities, including the Canadian Red Cross and Kids Help Phone, can be a no-brainer if you’re already in austerity mode and have decided a vacation isn’t in your near future. Not only will you keep more of your hard-earned money come tax time, but you’ll also be helping a registered charity that regularly improves the lives of thousands of people.
Chart: Loyalty programs that allow you to donate points
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