Give to Charity; Get a Discount

Giving to charity has its perks, and this year that includes coupons for your favorite store. But caveat emptor: The biggest benefactor might be the retailer.

Looking at dismal sales predictions for the holiday season, shops are stepping up their links to charitable groups as a way to bring in customers. CB2, a sister to Crate and Barrel, is offering a 15% off coupon for shoppers who bring in five nonperishable food items. Purchases made during Gap’s four-day Give and Get promotion yield a 30% discount for the buyer, while their choice of charity gets 5% of the total spent. (For more details on these and other offers, see the chart below.)

Consumers who sign up of course increase store traffic, while the store snags a juicy tax deduction for all those contributions. “It’s a feel-good move,” says Ellen Davis, a spokeswoman for the National Retail Federation, an industry group. “Shoppers feel like they can really maximize their spending and give back.”

Here’s how to navigate these offers:

Read the fine print. Check how much of your purchase is actually going to charity to gauge the promotion’s worth, advises Larry Chiagouris, a marketing professor at Pace University in New York City. A shopper would need to spend $250 at Macy’s (M) this holiday season to break even on the $25 enrollment fee for the retailer’s Thanks for Sharing program, $10 of which goes to charity. Infrequent Macy’s shoppers may benefit more from a straight donation.

Consider need. If you have a choice, consider sending your contribution to food banks, homeless shelters and other human services groups aiding people in need, says Sandra Miniutti, a spokeswoman for independent charity evaluator Charity Navigator. Such nonprofits have seen demand for their services skyrocket with rising unemployment and other fallout from the recession. “Giving hasn’t increased enough to offset that,” she says.

Make your own donation. Don’t let store promotions substitute for your own direct contributions. A tax deduction can be as valuable as a store discount. “If you want the deduction, you’ve got to write your own check,” says Miniutti.