Charity credit cards, or "affinity" credit cards, get their name from the bond between a charitable advocacy or other non-profit organization and a credit card company. These cards are sometimes offered exclusively to an organization's donors or members. Most of these credit cards, however, are issued by banks and credit card companies under agreements worked out with individual charitable organizations. These cards are similar to other credit cards but have an additional feature - this specified charity receives a financial benefit from the credit card company. The ideology behind a credit card that supports a non-profit organization or charity is brilliant, but the process may not be equivalent, or even valid. There are some factors to consider before deciding to apply for an affinity credit card to which supports an organization you are familiar with.  

Each credit card is different, and offers vary in terms of how the charity benefits, as well as the terms of the credit agreement with you. The charity usually receives a benefit in one or more of the following ways: a certain percentage of each of your purchases every time you make a purchase with the card; a certain dollar amount every time a new customer signs up for the card; or a portion of the annual renewal fee for the card.

You must read the promotional literature in order to understand exactly how the charity will benefit. For example, one affinity card offered declared that a specified national charity would receive half of one percent of all transactions made with the card (that's 5¢ for every $10 you purchase). If the financial benefit for the charity is not spelled out, ask before signing up. It is also important to consider the specific terms as you would any credit card offer, including the amount of interest rate or finance charges along with the annual fee, if any, the late fees and over the limit fees, if any, and the length of the "grace period."

However, do not apply for an affinity card for the purpose of tax breaks. Any amount that the charity receives from your involvement with an affinity credit card cannot be used by you as a charitable donation for federal income tax purposes. The "contribution" is actually being made by the credit card company.

Affinity credit cards can be worthwhile if they meet your criteria and if the charity, of your choice, actually benefits from it. As with anything, take a few minutes to do your homework and you will make a better decision for the long run.