Saturday, June 13, 2009

Capital One launches nonprofit card program

Capital One Financial Corporation announced June 2 the launch of Card Lab Connect, a program to help nonprofit organizations of all sizes expand the ways in which their card-carryinhg supporters can donate to charity programs.

Capital One said it tailored the Card Lab Connect program to help nonprofits with their fundraising programs. Through an online tool, cardholders can register for the program, create a custom design and market their affinity cards toward their supporters. All rewards earned on the cards, including 1 percent of net purchases, are donated directly to the nonprofit organizations. Organizations also receive an automatic $25 donation with each new account opened.

"In the current economic climate, nonprofit organizations are facing a dual challenge of increased need and tightened budgets, and these issue are amplified for smaller nonprofits " Capital One said in a press release. "Cash-strapped consumers are finding it more difficult to provide ongoing support." Capital One cited its 2009 Card Lab Connect Charitable Giving Survey, in which 57 of respondents said they had been unable to make donations of the same size as previous years because of their own financial difficulties. According to Capital One, only 34 percent of Americans said they planned to support local organizations in 2009, a 27 percentage point plunge from 2008.