Why Donating Points to Charity Is a Poor Redemption

By Bryce Casson, Founder · Cardocrat · Updated August 2026
The short answer: Most loyalty programs let you donate points or miles to charity, and it feels good, but it is a weak way to give. Points donated to charity are typically valued around one cent or less, and because you never received income, you cannot deduct the donation on your taxes. Donating cash instead is worth more to the charity, is tax-deductible, and lets you keep your points for travel worth far more.

The value is low and the deduction is gone

When you donate points to charity, the program converts them at a fixed, usually unfavorable rate, commonly around one cent per point or less, and the charity receives that cash equivalent. Two things make this a poor use of points. First, those same points could be worth two cents or more redeemed for premium travel, so you are giving at the program worst rate. Second, you get no tax deduction, because the IRS treats points as a rebate, not income, so donating them is not a deductible charitable gift the way writing a check is. See what points are worth.

Cash gives more and is deductible

If your goal is to help the charity, cash does more good per dollar of value you give up. A cash donation is fully deductible if you itemize, the charity receives money it can use immediately without the program taking a cut, and you keep your points for travel. Even a modest premium redemption can turn the same points into two or three times the value the charity would have received, value you can then choose to give as deductible cash. The charity is better off, and so are you.

When donating points is fine

There are reasonable exceptions. If you have a small orphaned balance too low to redeem for travel, or points about to expire that you cannot otherwise use, donating them beats letting them vanish. Some programs also run matching campaigns where the airline doubles donated miles, which improves the math. Outside those cases, the better pattern is clear: redeem points for travel at their highest value and donate cash, which helps more and lowers your tax bill. See when to use cash instead of points and the worst ways to redeem points.

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Frequently asked questions

Can I deduct points donated to charity on my taxes?
No. The IRS treats points and miles as a rebate rather than income, so you never recognized income on them and cannot claim a charitable deduction when you donate them. A cash donation, by contrast, is deductible if you itemize.
What value do I get donating points to charity?
Usually around one cent per point or less, the rate the program sets. That is well below what the same points can be worth redeemed for premium travel, so charitable donations are one of the lowest-value uses of points.
Is it better to donate points or cash?
Cash, in almost every case. It is tax-deductible, the charity receives the full value without the program taking a cut, and you keep your points for travel worth far more. Redeem points for travel and give cash instead.
When does donating points make sense?
When you have a tiny leftover balance too small to redeem, points about to expire with no other use, or a matching campaign where the program doubles donated miles. Otherwise, donating cash does more good and is deductible.

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Bryce Casson

Written by Bryce Casson, Founder of Cardocrat. About the author and how we rank cards.