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I would think that it was a sweet idea. There are very few people whose lives haven't been affected by cancer. I would just make a little note card for each table or something though to let people know, and maybe stick some pictures of the people you have lost to cancer around to make it even more special.
Considering your family history I think that it would be wonderful gesture.
I agree with MsBlueberry about recognizing those affected by cancer in some way; I'd suggest maybe placing their names on the back of the donation card. A little note on each table explaining the donation would also be enough. I'm not sure you'd have to make one for everyone. This way people who don't know both sides of your family can learn about why you chose this charity.
Personally, I'm not a big fan of the donations for a favor idea. I understand the obvious tie and appreciation you and your FI have for the above mentioned charities and I wholeheartedly am for the two of you supporting them as you see fit. But giving money to a charity shouldn't serve as a favor for your guests.
In my mind, the favor is supposed to be a small thank you for attending your wedding and being a part of your special day. And I just don't see how donating money to a charity that many of your guests will have zero tie to is a thank you to them. I think you should make donations on your own time but not as favors.
i love the idea of doing a donation instead of favors, and you have a charity that really means something to both of your families. as a guest, i'd be happier knowing that you are supporting a great cause than having a few pieces of chocolate to take home. i plan on going this route as well. i agree with a pp that it would be nice to print up some cards for each table explaining the donation and the significane to your families.
My fiance and I are buying our table placecards and favour boxes from the Make-a-Wish Foundation UK, which come with a little pin to put in the box along with whatever we decide to put in (sweets, memento, etc). We are going to tie a ribbon around each box in our wedding colour, so it fits in (they are cream and gold, the boxes so they go with most everything).
The whole set (table placecard, favour box, and pin) is £2.50 per person, so we get items we can use at our wedding reception and we're also getting to make a donation. It seems better (to us) than buying the table placecards and favour boxes from another company, since we know the money will go to good use. We're also putting a note on our invitation that we would be happy for our guests to donate to the charity in our name, in lieu of a gift, if they would rather.
We chose this charity because my brother was granted a wish from the Canadian counterpart when we were kids.
Crap, I tried to attach a photo but it was too big, maybe this one will work (re-sized). This is the sample photo they sent us, when we enquired. :D
Wedding_Favours_10.jpg (74.3 KB, 36 downloads) 1 year old 
I love the idea of doing a donation over favors. We definiately considered doing that but then we got some really great favors for free so we couldn't pass them up.
Know your guests. On each placecard I gave my guests the option to vote for a charity, and several commented that they really appreciated the gesture and were tired of regular favors! Guests dropped their votes into a box at the card table.
I'm sure the minority of old-school guests present were not as pleased, but since I knew the majority of my guests were like-minded and less traditional, I was comfortable with the idea.
Thanks all for the feedback! I think we will be going with doing donations in lieu of favors, or if we can, do both. @royal, my sister also was granted a Make-A-Wish here in the US, I'll have to see if they offer something similar!
I don't think donations are a replacement for favors; a donation isn't a token the guests can take away with them, which is, by definition, what a favor is. A donation is a great idea on its own, without it being called a favor. You're right, though. A donation to a charity would be a better use of your money than a favor. :)
I love donations as favors. I've only been to one wedding where this happened, but it really struck me as nice. It made me happy to think that someone made a donation to a charity in my honor, rather than buying something trinket-y that I will most likely throw away.
Favors can take a lot of forms - including a gesture (aka a donation).
Miriam Webster has a few definitions:
a (1) : friendly regard shown toward another especially by a superior (2) : approving consideration or attention
a : gracious kindness; also : an act of such kindness <did you a favor>
a : a token of love (as a ribbon) usually worn conspicuously b : a small gift or decorative item given out at a party
It can take many forms. Basically, it is a nice way to say Thank You.
I agree with you @FutureKMM. People have taken the time/money to come to your wedding, I think it is nice to send them with a 'taste' or a small token from you. A little effort goes along way.
I vote for donations - and go ahead and buy a plain old bag of hershey kisses to stick on top. A huge number of favors get left on the tables and end up being basically gifts for the wait staff. Who really needs another dust collector in your house?
People have taken the time and spent the money to come to your wedding because they care about you and appreciate you and because they are honored to be part of your special day. Not because they are getting a random thing with your name on it.
Honestly, as a guest, I'd rather know that $200 went to a charity rather than $2 worth of candy to each of the 100 guests (for example). I think especially with your family history, people will appreciate a donation being made.
I much prefer donations. I have gotten coasters, bottles of wine, candy etc... at weddings. I didn't want or need any of it and would have been much happier knowing the money went to a good cause.
Just know your guest list. I couldn't care less about seeing the donation card or a favor so either is wasted on me. PS: I think some people are very down on ACS (or is it the Heart Association). I think its pretty innocuous but some people may poo poo on your choice (consider the reaction you would get if you advertised that you were giving a donation to a white supremacist non-profit or a terrorist org...obviously not the same at all but then again, some people are crazy).
We're doing a donation to the MSPCA. (massachusetts society for the prevention of cruelty to animals) We adopted our cats from this shelter and personally I'd rather money go towards a good cause then to a favor my guests are going to eat in 5 minutes or throw away.
What many people don't realize is that favors are never required and no one will miss them if they aren't there. The wedding magazines want you to spend money you don't have on your wedding and make you feel guilty because you don't, but those who love you don't want you to do that. Favors are the first thing to be cut when a budget is tight or limited, and because guests won't miss them, they would rather that you either save the money for a rainy day after the wedding when your bank account is tight or use the money for things they actually remember: food/beverages and entertainment, or put it toward better photography which is your only tangible keepsake after the day is over.
If you must have favors, edible is best. Donations are not favors and should always be kept private between the couple and the charity in question, and most guests don't need or want to know that you spent the money for that reason. Alot of charities are controversial and most do not take no for an answer when seeking out further donations in the future (to the names of your guests you provide if you do it in their names).
As a guest, I would prefer you put the money toward better food or photography, or else save it for after the wedding when you really need the money.
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So I was thinking about favors, and my original plan revolved around silver and purple hershey kisses, with our wedding date on the bottom. Now I'm thinking instead of doing that, to make donations to the American Cancer Society and Children's National Medical Center in honor and in memory of family members who've had cancer. What do you think? FI's family has lost an uncle to cancer, and his aunt is a breast cancer survivor, while my sister had cancer at 15 (she's a survivor). We can't afford to do much more for favors than the hershey kisses, but we can definitely do more by donating, in my opinion. What do you think bees?