Why Donating Points to Charity Is a Poor Redemption
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.
Frequently asked questions
Related reading
