There are tens of thousands of charitable organizations registered in the United States today, and any one with a 501(c)(3) designation is eligible to receive tax-deductible contributions. The IRS offers a complete list at www.irs.gov (click on the Charities & Non-profits tab).

Of course, it is important to select a charity whose mission you support. At the highest level, the following kinds of organizations offer opportunities for deductible giving: religious organizations, educational organizations such as elementary and secondary schools (both public and private), social service agencies, arts organizations (museums, theater and dance groups, and musical groups, as long as they are registered as not-for-profit), environmental groups, hospitals, and medical research, disaster, and poverty relief organizations.

It also makes sense to consider how well an organization will make use of your donation. The site www.independentsector.org/gandv/giving.htm provides an excellent summary of issues to consider when evaluating a charity. So does www.libraryspot.com/features/evaluatecharities.htm.

The GuideStar service (www.guidestar.org) provides access to relevant information about virtually all not-for-profits by publishing the Form 990 that these organizations are required to file with the federal government. This form includes both financial and operational data. GuideStar offers a tutorial on reading this form at its Web site, as does the New York Coordinating Committee for Nonprofits www.npccny.org/Form_990/990.htm. The Program (click here) offers guidance as well.

Other groups have developed methods to analyze and assess the operating practices of not-for-profits, although none has reviewed all eligible organizations. Some pay particular attention to organizational efficiency, as measured by the percentage of donations used for expenses/administration (the lower the better). The site www.give.org, sponsored by the Better Business Bureau Wise Giving Alliance, is well done. Others to consider include www.independentcharities.org, a vetting service searchable by theme, and www.charitywatch.org, sponsored by the American Institute of Philanthropy, which rates some 500 major charities. You can also check directly with the Federal Trade Commission on whether a charity of interest to you has been involved in any findings of fraud or other violations at www.ftc.gov/bcp/conline/edcams/charityfraud.

The growing size and complexity of the not-for-profit sector in America has attracted the attention of a variety of business thinkers and strategists in recent years. Some advocate the application of modern management techniques to make the sector more efficient, including “The Nonprofit Sector’s $100 Billion Opportunity” by former senator Bill Bradley, and others. in the Harvard Business Review, May 2003 (harvardbusinessonline.hbsp.harvard.edu). An alternative point of view, that business is not an ideal model for not-for-profits, is advanced by business guru Jim Collins in his recent book, Good to Great and the Social Sectors.

The T. Rowe Price Program for Charitable Giving is designed to enable you to structure your giving wisely from a tax planning point of view. These laws change constantly, and it is always wise to consult a qualified tax attorney.