Democratizing online giving

“Set up recurring donations for charities you care about,” Strathmann says. “Do $10 a month. That’s easier than giving $120 at the end of the year when you’re trying to figure out whether you can afford it, along with all your other expenses.”

Another tip: Be an informed giver.

Strathmann says people should ask a lot of questions. What are the financials of this nonprofit? What is their mission? What percentage of dollars is really going to that mission vs. general administrative expenses?

“Give with your head as well as your heart,” he says.

Also keep in mind that many employers match gifts made by their employees. Strathmann says to ask your company if it can help your gift go even further.

“Many times, your companies will match,” he says. “That’s terrific. If it’s a dollar for dollar match, then you can double what you give to these nonprofits. A lot of people don’t think about that, but they should.”

In addition, it’s also important to consider the tax implications of charitable giving. Bob Meighan, vice president of TurboTax, cautions that there is a limit on how much you can deduct.

More than 1.5 million charities are listed on the Network for Good Web site.

The basic rule is that the contributions can't exceed 50% of your adjusted gross income. If these restrictions limit the write-off in the year of the gift, the excess deduction carries over to the next year.

You can deduct charitable donations only if you itemize your deductions. TurboTax has a program called ItsDeductible that tracks and values non-cash items and puts the information directly into TurboTax on the Schedule A form.

Also, people need to realize that tax exempt is not the same as tax deductible. “A lot of state troopers’ organizations, for instance, may have some charitable purpose, but they’re not qualified organizations as defined by the IRS,” says Meighan. Check the online version of IRS Publication 78 to search a list of organizations eligible to receive tax-deductible charitable contributions.

Of course, the charity industry does have its share of fraudsters and con artists. There are people out there who do take advantage of the public’s trust in charity and hoodwink them out of money. But there are a few simple safeguards people can use to make sure their cash gets to the folks who need it.

Do some background research at GuideStar, a database of 1.7 million nonprofit organizations in the U.S. There, users can verify a nonprofit's legitimacy, learn whether a contribution will be tax deductible, check out a nonprofit's recent Forms 990, and get a better sense of its mission, programs and finances.

Getting the goods on 5,000 charities
Also, go to Charity Navigator, a New Jersey based organization that rates nonprofits. The outfit evaluates the financial health of over 5,000 charities. The watchdog group says it examines how responsibly the charity functions day to day as well as how well positioned it is to sustain its programs over time. Each charity is awarded an overall rating, from zero to four stars.

Americans will be checking out these sites as the year now nears an end, looking over which charities best represent their values and concerns. This is the time of year when people give the most. They know how much money they have left to donate and it makes sense for tax purposes.

But Americans also go online and give because of the holiday season, because this is when a lot of us feel especially motivated to give to those organizations dedicated to helping those in need, like the Brain Tumor Foundation for Children, that nonprofit Christy Bennett is helping raise money for.

Her niece, Abby, now 3-years-old, was back in the hospital this December. She had more blood and platelet transfusions. Bennett says that she tries to stay optimistic, believing still in Abby’s eventual recovery and sustained by her Christian faith.

“She put up a great fight the first time,” Bennett says. “She can make it. I don’t know why this has happened to her. But, sometimes, you just can’t understand. So you need a stronger belief, in something bigger than just us.”

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