'Tis the season to give to charity ... as long as you know to whom you're giving.

The holiday season often stirs people's generosity to give to local and national charities. During such a season, it seems only fair that the needy benefit from your good fortune.

But how do you know that your contribution makes it to the needy?

Though most charities are on the up-and-up, some are simply inefficient -- and a few even make a business of fattening their own pocketbooks from honest donations.

There are a number of ways to satisfy yourself that your contribution will be used as you intended. A few organizations monitor and evaluate charities for consumers. The Wise Giving Alliance -- a joint project of the National Charities Information Bureau and the Council for Better Business Bureaus has definite standards charities must meet to gain their endrosement. It also lists hundreds of charities, some that meet their standards and those that don't -- and it lists which standards they do not meet. It also offers a reliability seal for organizations approved by the CBBB to post on their Web sites.

Another charity watchdog organization is the American Institute of Philanthropy. The AIP gives letter grades to about 400 charities in 37 categories, such as animal protection and cancer. If you have an idea of what specific cause you'd like to support, this site breaks your options down clearly.

These organizations and other sources offer tips to consumers looking to donate to charities. They emphasize getting to know the charity you're interested in, as well as preparing for a tax deduction.

Tips For Charitable Giving

Check credibility of the charity with the above online sources or at your local registration office -- which is usually a division of the attorney general's office. The Wise Giving Alliance provides a list of government offices by state that register charities.

Look closely at the charity's name. Charities often sound very much alike, but their qualities are often very different.

Do not give cash to any charity. Write a check made payable to the full name of the charity, not to the individual collecting the donation. Request a receipt and keep it, along with your canceled check and bank statement, for documentation at tax time.

Determine the purpose of the charity. Make sure it is what you think it is. For example, some cancer charities work to cure the disease, while others work to care for those suffering with the disease. Also, ask how the charity attempts to achieve its goals, whether through research, giving grants or some other way.

Find out if your donation is tax deductible. Remember, even if the organization is tax exempt (which means it doesn't have to pay taxes), that doesn't guarantee you a tax deductible. Charities deemed tax deductible are usually have the Internal Revenue Code of 501(c)(3), broadly defined as "charitable" organizations. To find out your donation is tax deductible, request the charity's tax exempt letter or contact your local IRS office.

Find out what percentage of your donation goes toward charitable purposes. The phrase "All proceeds go to charity," though often used, is misleading. This means that all the money left over after expenses goes to charity.

There isn't a clear line that charities should fall into -- many factors contribute to the percentage of income that goes directly to the charity. Expenses facing charities include program expenses (money for charity's recipients, in the form of grants, food, educational materials, etc.), management (including any paid employees, as well as day-to-day administration expenses), and fund raising.

The CBBB standards call for at least half a charity's total income to be spent on programs; at least half of public contributions to be spent on programs described in appeals for funds; no more than 35 percent of contributions to be spent on fund raising; and no more than half the income to be spent on administration and fund-raising costs. Both the NCIB and the AIP call for a minimum of 60 percent of a charity's income to be used for true charitable purposes. Watchdog groups suggest that you request a charity's latest annual report or their IRS Form 990 to determine this information.

Online Donations

The steady rise of the Internet makes available not only tools to choose a charity, but the tools to donate electronically. A few other tips apply when looking to donate online.

Don't automatically trust .org domain names. As the NCIB Web site explains, the Internet used to be much more separated by domain names. Organizations with a .org domain name would generally be nonprofit, just as .com was commercial or for-profit and .net was a network- or technology-based business. But these suffixes can no longer be used to determine a certain type of organization because anyone can register for any of these domain names.

Look for the charity's physical mailing address and telephone number. Don't get sucked into an Internet "charity" that exists only on the Web and has no options available for hard-copy information or face-to-face interaction.

Looking for something different? Try shop-for-a-cause options! Web sites such as GreaterGood.com give consumers the option of shopping online, and a percentage of their purchases go to their favorite charity at no higher cost to them. Sound too good to be true? Maybe, but it's true. These sites use some or all of the referral fee they receive from retailers to donate to charity. They are for-profit organizations that make money off advertising, but they donate to any nonprofit you choose. Again, don't forget to check out the charity you choose before signing up.

Low on cash, but still feeling generous? Give gifts of support. There are several sites that have developed a "one-click" idea -- users click on whatever cause they want to help, and sponsors automatically contribute a specified amount -- generally a cent or two. The Hunger Site pioneered the idea in June 1999. Since then, t101 million visitors have given more than 198 million cups of staple food.

The "one-click" idea was carried onto similar sites, such as EcologyFund.com.

Additional Resources:

• IRS information for charities and nonprofits
• Forbes list of most efficient charities