Which should you support?

With more and more worthy causes on the menu, how do you choose which to support?

• Check it's the real deal:The Charities Register provides a list of all registered charities. These have been vetted by the Charities Commission to make sure they have a charitable purpose and a proper constitution. Registration isn't compulsory - and to avoid the extra administrative burden some groups may not register. Provided they're doing good works, non-registered groups can still be approved by the IRD as "donee" organisations (see "Tax breaks", below).
• Check the sums: Ask what percentage of your donation is used to support the cause and how much is spent on administration and fundraising. Bear in mind some charities will have higher overheads than others because of the nature of their work. For example, a charitable trust running a museum will have insurance and security costs that a charity running a tree-planting programme won't have. 
• Check what it's doing: Financial information is just one indicator of what a charity is doing with your money. You also need to know what it's actually achieving. Ask to see the charity's annual report - most of the big charities provide these. Visit the group's website if it has one. Talk to family and friends and find out what they think about the charity's work. To get a first-hand insight, you could work as a volunteer. Over one million of us already do voluntary work for charities.
• Choose how you give: If you want to cut out the middleman - the fundraising and event-management companies that clip the ticket - give directly to the charity. Payroll giving lets you donate to a charity via your wages. You automatically get a tax credit on your donation (see "Tax breaks") without having to file a claim form.
• Making a complaint: If you think a charity is doing something wrong, make a complaint to the Charities Commission. The Commission can investigate any charity or any person engaged in activities that may breach the Charities Act or constitute serious wrongdoing. Penalties can include fines - and the charity can be struck off the register.

Tax breaks

You can claim a 33.33 percent tax credit on any donation of $5 or more made to an organisation with "donee status". Inland Revenue determines whether a group is entitled to this status.

To qualify, the group must be an entity or trust whose activities aren't carried out for the profit of any individual and whose funds are used mainly for charitable, benevolent, philanthropic or cultural purposes. Organisations don't have to be registered with the Charities Commission to get donee status.