Ledger

Mailboxes are jammed with begging letters and sad stories of the hungry and the homeless. Ringing bells and reaching hands remind passersby that those less fortunate need help. Telephone calls ask for "just a small donation" to house the orphans, to educate the children, to cure the disease.

More than 80 percent of the money raised by charities comes from individuals. Half of all charitable giving by individuals occurs between Thanksgiving and New Year’s Eve, according to Charity Navigator, a website that bills itself as a "guide to intelligent giving."

Most individuals donate to charities that offer some kind of personal relevance. Someone whose mother died of breast cancer might choose to give to the Susan G. Komen Breast Cancer Foundation. A lover of animals might donate to the local humane society. The aftermath of natural disasters also tends to capture the public’s hearts, prompting many individuals to donate.

After Hurricane Katrina in 2005, donations to the Red Cross were so amazingly generous that the American Red Cross announced that the financial donations and pledges would cover the estimated costs of its hurricane relief efforts.

That same high of giving to a cause is often followed by "donor’s fatigue," resulting in a lull in charitable donations. However, most charitable organizations stress that it’s never too late to donate. Whether giving to local, national, or international charities, philanthropists must make responsible and informed decisions. Researching charities and learning the lingo can mean the difference between donations that go toward effective charitable work and money that simply goes in a stranger’s pocket.

For instance, tax exempt does not always mean tax deductible. "Tax exempt" simply means the organization does not have to pay taxes. The Internal Revenue Code defines more than 20 different categories of tax exempt organizations, but contributions to only a few of those organizations are tax deductible.

Foremost among the "tax deductible" groups are those in the 501(c)(3) category, broadly termed "charitable organizations." The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals.

Researching charities will help potential donors determine if their donations will be spent in accordance with their wishes. "Give, but give wisely," advises the Washington Secretary of State’s office. Before donating, make sure the charity is legitimate, effective, and financially efficient.

Several resources on the Internet provide information about charitable organizations:

• www.IRS.gov. The Internal Revenue Service lists al charities who have been given 501(c)(3) status.

• www.charitynavigator.com. This website offers advice on charitable giving. You can search for charities by category, rating, or name.

• www.give.org. The BBB Wise Giving Alliance’s website provides reports on national charities based on the alliance’s standards for charity and accountability.

• www.secstate.wa.gov/charities. The website of the Washington Secretary of State offers tips on charitable giving. You can search for information on specific charities or commercial fundraisers.

• www.guidestar.org. Operated by Philanthropic Research, Inc., this website requires registration to access its information. A basic subscription is free but provides only limited data about specific charities.