Lemondrop

There are tons of charities out there, but they're not all created equally. Lemondrop looked at the pros and cons of various types of giving -- and what to look for to make sure your time and money are being well spent.

Overall, only a small portion of a charity's funds should go toward administrative and fund-raising costs. According to Charity Navigator, charities should spend no more than 15 to 25 percent of their budgets on administrative costs. You can find other red flags to watch for here.

So if you're going to give, what's the best method? We review the pros and cons.

Donating Money

Pros: You get to decide what you give. "Every donation, no matter how small, makes an impact," said Elizabeth Kilpatrick, President of Impact Philanthropy Group. "You can ask a charity to earmark your donation for a particular program so you can be responsible for directing specifically how your funds are used."
Cons: You may not know where your money's going -- some charities use donations for administrative costs rather than serving the people they're supposed to be helping.
Good Charity: The Wounded Warrior Project puts 75 percent of what it raises to actual programming.

Click here to learn about other types of giving.

Purchasing Products

Pros: It's shopping. Who doesn't like shopping?
Cons: It's shopping with restrictions. You may have to buy things through certain stores or sites and may not be able to tell how much of the purchase is going to charity.
Good Charity: The Salvation Army donates 100 percent of the profits from its family thrift stores to its adult rehabilitation centers.

Donating Time

Pros: The warm and fuzzy feeling you feel from getting a hands-on helping experience. Hana S. Wolf is an active board member at the Boys and Girls Club of Asbury Park, N.J., and invites potential volunteers and donors to see the group's programs in action. "I love the energy of the Club -- the kids, the staff, the programs, everything," she said. "Every time I donate money or time, or help raise money or start a program, it feels good."
Cons: You're super busy -- when are you supposed to fit in volunteer work? And depending on the program you might need to go through hours or weeks of training -- as well as a background check -- before you're actually qualified to volunteer. You know what they say about the road to hell being paved with good intentions? This is what they're talking about.
Good Charity: Big Brothers Big Sisters gives you one-on-one time with a child, so you can see their progress. You can volunteer for as little as four hours a month.

Donating Goods

Pros: You can get rid of stuff you don't want anymore. Woo hoo! Computers, cars, old cell phones -- even hair -- can all be donated for a sweet tax write-off and good-karma points.
Cons: It's hard to tell where your stuff ends up. And sometimes, you may think you're donating a good for use, when the good is actually being resold by the charity. Take cancer charity Locks of Love, which provides wigs for cancer survivors. The organization receives more hair than they can use, so they actually end up selling some donated hair to wig manufacturers. And they don't just GIVE wigs to kids in need -- they charge on a sliding scale. That doesn't mean you shouldn't donate to them, it just means you should know the facts before deciding on a contribution.
Good Charity: At Goodwill, 84 percent of revenues from donations sold in its thrift stores are used for employment and training programs

Participating in an Event (i.e. Running a Marathon or Attending a Gala)

Pros: You get to participate in doing something good for others -- and maybe get a workout or an excuse to wear a fancy dress. Plus, you can share the good karma with others by encouraging your friends to participate or donate. Who doesn't love a group activity?
Cons: You spend a lot of time on just one event -- and in some cases, you have very little hands-on interaction with the charity itself. Plus, sometimes these events seem to be more about promoting the charity's image than they are about helping people in need.
Good Event: Next to contributions from foundations and corporations, Cancer Care raises most of its money through events and puts it toward programming.

Check These Sites Out

If you want to make sure the group you're getting involved with is worthwhile, visit Guidestar, which lists the operations of nonprofits and how the money is spent. Sites such as Charity Navigator, Charity Guide and the Better Business Bureau's "Charity Reports" section are also good places to look.

For a sure thing, check out these Top 10 charities from Marie Claire. And for opportunities by location and interest, visit Volunteermatch.org.