The holiday season is a wonderful time to give thanks for all that we have and to share our gifts with those less fortunate. Charitable giving can be as simple as writing a check to your favorite charity, cooking a complete Christmas dinner for a needy family or dropping off clothing to a non-profit agency. Or, it can be as complex as establishing a private foundation. Whatever route you choose, investment consultants advise that you keep in mind some simple ideas to help your gift make a greater impact, both financially and personally.

Your first step should be defining your mission. How do you want to make a difference in the community? Setting a specific charitable goal is the first step to making it a reality. While hurricane relief has recently taken the spotlight, there are many other worthwhile efforts to help those in need, such as those devoted to children, animals, the homeless, schools, etc. Focus on whatever touches and inspires you, because the stronger you feel about your mission, the more likely you are to achieve it.

Next, determine what you would like to give, and the best way to do it. While you can always write checks to charities, you may want consider other creative ways to contribute that might make more sense for your financial situation and charitable mission. A group of local residents organized a professional clothing drive, Suited for Business, which allowed victims of Hurricane Katrina to “shop” for much-needed business attire. Organizer Tanya Freeman arranged a Friday afternoon clothing drop-off, and then opened the doors the next day for those in need. The program was a great success, a perfect example of how a grassroots campaign can make a remarkable difference—without substantial financial backing.

If you prefer to make financial contributions, don’t let your first consideration be “How much can I afford to give?” says Eric Dunavant, financial consultant at Charles Schwab’s Mandeville Investor’s Center. “A better question might be ‘How can I fulfill my charitable mission over time?’” he says. “Try making a predetermined donation—a set dollar amount or percentage of your income—every month or at the end of the year.” And remember to obtain written confirmation of donations over $250 to a single person or entity. “Most organized not-for-profit agencies will [send] this automatically, but be sure to double check,” says CPA Patrick Gros, noting that you should save those documents to back up deductions you will take on your 2005 taxes.

Dunavant also advises clients to explore various organizations that can help you achieve your goals. “I tell my clients to approach each charity as if it was a potential investment, and engage in some philanthropic due diligence,” he says. What does that mean, exactly? You should examine the organization’s mission and what it has accomplished over the last five years. Dunavant even proposes that philanthropists ask the directors and board members of an organization what their specific business plan may be. An important question to consider is what percentage of each dollar donated goes toward program activities versus what is allocated to administrative overhead and fundraising.

“There are no set guidelines for what makes a particular organization a good choice for you,” says Dunavant. “But … you want to feel confident that your contribution is in good hands and will lead to measurable results.”

The end of the year is a good time to consult with your financial advisor and evaluate the returns of your charitable investments. Together, review each organization’s annual report, including its income, expenses and changes to its financial balance sheet. This will help your advisor to gauge the philanthropic return on your investment. And if you’re considering making a large monetary donation, be sure to set out a specific plan for putting your donation to work, instead of letting the money be placed in a general fund. Dunavant says that the most effective charities allow his clients to designate their funding towards their specific interests. “For example, if you’re very passionate about teenage literacy and reading, and you are planning to make a large donation to the local Boys & Girls Club, you would be able to help them put a set amount of your donation to programs designated to that cause. Similarly, if you want to donate to Habitat for Humanity, and wish to see certain areas of the Gulf Coast rebuilt, you can work with them to be sure that most of your donation is going toward those intentions.”

Lastly, expect your charitable portfolio to change over time. Your mission is a personal expression of how you want to invest in your community’s future. Organizations grow, mature, and sometimes decline; you don’t have to keep giving to a charity just because you’ve done so in the past. Keep in mind that your mission’s success doesn’t necessarily need to be measured in terms of how much you give. Your greatest success will come from making a difference in your community.