Step1
Think of a Cause
There are many organizations that need donations, any cause is justifiable, but what inspires you to reach in your pockets? Knowing what charity best defines your focus, is the first step in knowing what to look into. There are thousands of charities out there, so narrowing down your focus is key.
Step2
Evaluate Resources
Take advantage of important resources that keep watch of charitable organizations and make sure they use donations wisely. The BBB Better Business Bureau keeps a close eye on nationally recognized charities, through a quarterly issued magazine called Better Business Bureau Wise Giving Guide, as well as a website, Giving.org, through these resources you can research organizations and take a look at everything from contact information, to tips about the organization, to financial reports.
Another source is Charitywatch.org, it's regulated by the American Institute of Philanthropy, or AIP. Charitywatch.org grades charity on those that spend generally $25 or less per $100, and they have a very useful top-rated page where charitable organization topics are listed from AIDS to Youth related organizations.
The last listed website that aids in deciding where to put your money is Charitynavigator.org, which offers a charity search, top ten list, and a 4 star organization search that separates organizations and provides in depth information about the reviews it's received and lots of information
regarding financial reports. The charities investigated on Charitynavigator.org are considered 501 (c) (3) charities, so often don't include religious charities due to lack of data, but still provides great guidance towards the right charity.
Step3
Go With Your Gut
When you've researched, reviewed and reflected, in the end go with your gut. The charity that warms your heart should make you feel confident that the change in your pocket will convert to a change in the world that you want to see.