Donating effectively

Donations are already pouring in to help Japan recover from the aftermath of the earthquake and tsunami earlier this month. But unfortunately, not every charity appealing for your money is really helping those in need. Kelli Grant, Senior Consumer Reporter for SmartMoney.com, tells what you need to know.

Scam artists prey on people's desire to give, setting up fake web sites and cold-calling consumers. Don't give on impulse to the first person that asks. Take it upon yourself to figure out which charity you want to give to, and approach them. It's the only sure way to know where your money is going.

Experience counts in a big disaster, and it's more effective to give to a charity that has already worked in Japan and is known for getting the job done. Charity Navigator, GuideStar and the Better Business Bureau's Wise Giving Alliance all keep tabs on effective groups working in Asia.

Check up on the charity you are considering. Be sure to give your money to a charity that puts at least 75% of donations toward programs. That makes sure more money gets to people in need, rather than the charity's pockets.

Write a check. The charity gets more of the money when you give them cash, directly. Telemarketers can take more than half of what you pledge, and some middleman donation sites also take a cut. Even paying by credit card can carry fees.

Look for unique ways to give. Some businesses are offering to match your donation, or offer a little something extra. Deal site LivingSocial is asking its users to give $5, and then matching that with its own $5 donation. And Continental is offering 250 miles back for a $50 donation - and you can then donate those miles, too, if you want.

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