Know how much is tax deductible. To show their appreciation for your donation, many charities offer gifts in return. These can reduce the amount of your tax deduction if accepted. Gifts such as a dinner for two or concert tickets will lessen the amount you can deduct come tax time. Of course, these gifts can be turned down, and often are. Maintain accurate records. Upon making a donation, the charity should provide you with receipts and possibly even forms you'll need to prove you made the donation. Always keep these records, even after you've filed your tax returns. For more information, visit the Internal Revenue Service Web site at www.irs.gov.

Plan for your gift. Most people recognize the need for giving around the holiday season and want to do their part. To ensure you can do just that, plan for your gift and add the amount into your monthly budget. Just like you would rent or utilities or your monthly car payment, plan ahead on how much you'll donate and stick to that amount. Charities will appreciate the effort and you'll feel better having done your part.

Do your research. Not all charities are legitimate and well-intentioned. In fact, criminals prey on charitable people around the holiday season, recognizing the added desire for giving and attempting to capitalize on that desire. If you don't have a favorite charity with which you've established a relationship over the years, take some time to do your research and ask a few questions along the way. Be skeptical of charities you've never heard of or aren't familiar with. Ask how much of your donation goes to the needy and how much goes to the charity's overhead costs. Ask where the money will go as well. Any charity worth giving to will be glad to answer these questions. If a charity does not know the answers to such inquiries, ask for a phone number for the charity's headquarters or simply look elsewhere. Never trust a charity is a charity simply because it says so. There are nearly as many bogus charities as there are legitimate ones.

See if your employer matches gifts. Employers often recognize their role in making charitable donations as well. Such a recognition often results in matching programs, where an employer will match the donation amount their employees make to a given charity. This can make your donation go even further. Of course, it can also help your employer when it comes time to file taxes as well.

Recognize there's more than one way to give. It's no great secret money can be tight come the holiday season. Giving time is often as valuable as money. Since charities experience a sharp increase in donations around the holiday season, they often need help in handling those donations. In addition, charities often get more public around the holidays in an effort to increase giving. That increased presence is made possible by volunteers willing to offer their time.

Another great way to give is to bequeath some money to a favorite charity upon your death or set up an endowment. Both of these methods will ensure you charity keeps reaping the rewards of your generosity even after you've passed. Most charities provide information regarding how best to set up such gifts. If your particular charity does not, consult your attorney on what's the best approach to take.

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