The Hindu Business Line : Swipe the card, contribute to a cause

ALL those who think that credit cards merely encourage frivolous expenditure, think again. You can contribute money to a worthy cause while spending money on yourself.

Just use a credit card that has a tie-up with a non-profit making organisation.

State Bank of India is the latest to launch a social card. It has tied up with four NGOs - - Cancer Patients Aid Association, National Association for the Blind, SOS Children's Villages of India and World Wildlife Fund, India. Called the SBI Social Card, it allows the cardholder to donate to the NGOs every time they use it.

SBI Card will donate 20 per cent of the annual fees or renewal fees to the four NGOs. Apart from this, customers also have the option to issue standing instructions for a fixed amount to be donated to any of the NGOs.

Mr Roopam Asthana, Chief Executive Officer, SBI Card, said, "We are targeting issues such as cancer, visual impairment, wildlife conservation and children's welfare through this card. The idea behind is that Indians are by nature compassionate and generous. With this card donating money to NGOs becomes easy."

Similarly, Citibank has a tie-up with CRY and WWF. A percentage of what customers spend goes to the organisations. Apart from the contribution of the customers' annual card fee, Citibank also contributes a percentage of what the customers' spend to CRY's Kislay Project based in the slums in Vikaspuri, Delhi.

In case of the WWF Card, the contribution goes to WWF projects across India, aimed towards protecting nature and endangered animals.

Mr T.R. Ramachandran, Business Manager, Cards, Citibank, said, "Customers prefer using these cards as they contribute to a cause that they believe in while carrying on with routine purchases."

For the NGOs, the advantages, apart from an assured sum of money, is more visibility. Mr Ravi Singh, Secretary General and Chief Executive Officer of WWF said, "The Citibank experience has been good and we hope the tie-up with State Bank of India will help us as well. We need to increase our visibility for the sake of conservation of nature."

Another advantage of joining with credit cards is it helps NGOs reach out to the younger generation, Mr Singh said. "As of now, it is the older generation that is pushing social causes like wildlife conservation. But through credit cards we can reach the younger people."

The CRY-Citibank card launched in 1998 was one of the first affinity cards in the county. Mr Tarun Vohra, from CRY, "The experience with Citibank has been an enriching and rewarding one. It has enabled us to reach out, create awareness and generate funds for the work we do. Communication on CRY sent out to card members helps keep our organisation on top of mind among the target audience."

Credit card holders too stand to gain more than the just the mental satisfaction of doing a good job. For instance, WWF regularly sends cardholders information about activities such as nature camps and tree plantations.

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