American Airlines 20 Miles per $1 Donated

[Matt]

AA is currently offering 20 miles per $1 donated (for over $25 donations) to their charity partner, the Cure/Komen.



From a tax perspective, note that the miles have a value assigned by AA:

For charitable deduction purposes, each mile is valued at 2.75 cents per mile if fewer than 6,000 miles are awarded and 2.5 cents per mile if 6,000 or more miles are awarded.

Link

The value of the points applies to IRS rules that you cannot deduct a donation if you receive something in exchange for it. EG if you paid $100 to attend charity dinner, and the dinner was valued at $50 you could claim $50 as a donation for your tax deductions.

 

[William Charles]

I'd recommend anybody considering doing this has a look at Cure/Komen's financials first. This is a marketing company, not a charity.

 

[Matt]

I'd recommend anybody considering doing this has a look at Cure/Komen's financials first. This is a marketing company, not a charity.

http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=4509#.VCxEDvldVa0

 

[Benwa]

Also, you can look up their 990 (tax return) on Guidestar.org
A 990 takes a little professional skill to read, but worth doing if you can, and are considering this.

 

[Benwa]

Also worth noting that you *DO* get a tax benefit for doing this, just not 100%. More like 50%. So, hypothetically, if you gave $1,000, you'd get 20,000 miles, and you'd be able to deduct $500 (.025 * 20,000 = $500 is disallowed, what AA values the miles you receive, leaving $500 that you can claim on your taxes.)
If you're in the 15% tax bracket, that's a $75 savings on your taxes, assuming you itemize deductions.
If you're in the 25% tax bracket, that's a $125 savings on your taxes, assuming you itemize deductions.
So, you pay $925 or $875 (depending on tax bracket) for 20,000 miles, or 4.6 cpm/4.4 cpm, and you've donated to a cause.

Edit: This isn't taking into account any CC bonus you get. So, I don't know if this counts for Discover's 5% cash back for online shopping, for example. Also, if you use an AA card to make the donation, then the math above is a little off.

 

[Benwa]

AA is currently offering 20 miles per $1 donated (for over $25 donations) to their charity partner, the Cure/Komen.

Matt, when I click your link, I'm seeing 10 miles/dollar donated, not 20.

 

[mrsjon01]

Matt, when I click your link, I'm seeing 10 miles/dollar donated, not 20.

AA is saying 20 miles per dollar here:

http://hub.aa.com/en/ju/be-pink

 

[Matt]

AA is saying 20 miles per dollar here:

http://hub.aa.com/en/ju/be-pink

Yep - when you click this link you get to then click the link I posted that says 10... hey ho! YMMV, don't sue me etc.

 

[Haley]

It is 10 miles per $1 from Komen and that is matched by American Airlines, so you receive 20 miles per $1 total.

 

[Matt]

It is 10 miles per $1 from Komen and that is matched by American Airlines, so you receive 20 miles per $1 total.

Hmm missed that, but thanks for clarifying it anyway.

So 20 miles at 2.5cents = 50cents per dollar of value, meaning 1 dollar (could) get a 50 cent deduction plus 20 miles.

For those in higher brackets it might be a good deal.