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Still, one rule always applies: Verify, first, that the organization is certified a nonprofit by the Internal Revenue Service, crucial to obtaining a tax deduction for your donation (related story). Not all nonprofits are 501(c)(3)'s. Gifts to lobbying groups like the Sierra Club, for example, are not deductible, while donations to the Sierra Club Foundation, the group's nonadvocacy arm, are. Confirming a group's status also weeds out sound-alikes, groups that glom onto popular names, hoping for mistaken donations.

Experts also suggest giving to groups you know. "There really is a logical reason why people give to their alma maters," says Christine Letts, associate director of Harvard's Hauser Center for Nonprofit Organizations. Volunteering is another prime way to learn about the inner workings of an organization. Andrew Schechtman, a 36-year-old family practitioner in San Jose, Calif., volunteered in Liberia for a year with the international health group Doctors Without Borders, treating malnutrition, malaria, and war wounds. Now, safely back in the States, Schechtman donates money to the group. "I know from experience that they're stingy," he says, "so I know my money's going to be well spent."

Failing firsthand experience, donors can consult community foundations, which make grants to local nonprofits in more than 650 areas nationwide. "We can connect you with staff who have expertise in the area you're exploring," says Stuart Appelbaum, vice president of development for the Minneapolis Foundation. The Council on Foundations' Web site (www.cof.org) lists community foundations that you can tap for assistance. Finally, quiz family and friends. A pal on the board of a women's shelter, for instance, can give you the skinny.

Charity-rating services can also be helpful. The BBB, for example, assesses national groups on 20 different standards, from fundraising efficiency to board governance. Every quarter, it produces a list (www.give.org) denoting whether groups have met its standards. AIP grades charities on similar measures, publishing the names of its top-ranked groups at www.charity watch.org. (A full report, which includes those graded C and below, is available for $3.) Charity Navigator also rates over 2,500 groups at www.charitynavigator.org.

But rating services cover only the largest or most-asked-about charities. And because standards differ, watchdogs may disagree. For example, Shriners Hospital for Children met the BBB's criteria, but got an F from AIP for hoarding enough cash to fund over 13 years of programs (AIP's limit is three years). "It's the investment that produces the income to pay for our hospital budget so we don't pass any costs onto our patients," says Executive Vice President Lewis Molnar. Standards on that most controversial of benchmarks--the percentage of a charity's expenses spent on program services--also vary. The BBB says groups should spend at least 65 percent of gifts on programs, while AIP and Charity Navigator say 75 percent.

The premium put on how much money goes toward program services is a sore point for many nonprofits. "Donors often want 100 percent of a gift to go directly to fund programs," says Indiana's Tempel. "But every organization has to pay utilities, rent, staff, and all the infrastructure pieces necessary to run a good organization." And expenses vary widely among charities. According to Charity Navigator, museums spend, on average, 18 percent of their expenses on pricey necessities such as high-profile collections and tony galleries. Food banks, which funnel donated food to the needy, typically spend less than 2 percent on administration. "You need to compare food banks to food banks and museums to museums," says Charity Navigator executive director Trent Stamp. "They operate fundamentally differently."

Details, details. Donors can also run their own background checks by perusing a charity's tax form. A third of the nation's nonprofits take in more than $25,000, which means they must complete IRS Form 990. Trouble is, the data on the forms are not consistent. A 2002 General Accounting Office study, for example, found that 64 percent of charities listed no fundraising expenses at all. Still, the 990s are chock full of details about a charity's finances, listing helpful nuggets like the amount of individual contributions and top officers' salaries. Some nonprofits spell out, say, how much they spent on bank fees or insurance. Legally, charities must disclose 990s to the public.

While finances are important, they're just one way of judging a charity's effectiveness. Equally critical is whether the group is setting--and achieving--clear, well-articulated goals. " `We're going to give people better housing' " is a noble aim, says GuideStar's Ottenhoff. But a better target would be: "'Next year, we're going to rehabilitate 1,000 apartments and provide them to families with at least two children, at a cost of $5,000 per apartment."' Such specifics should be detailed in the group's annual report, on its Web site, or in any requests for donations.

Donors may feel shy about being nosy, but the best answers can come from nonprofit staffers themselves. "I called a local nonprofit last week and asked, `Why should I donate to this group?'" says the FTC's Thorleifson. "The guy nearly fell out of his chair." But his response was informed and passionate enough to persuade her to give. Another telling query: "What percentage of your board wrote a check to the organization?" says Renata Rafferty, author of Don't Just Give It Away, who contends it should be no less than 80 percent. How much each member gave is inconsequential. The point is whether board members believe in the organization enough to put their own money into it and thus whether they are motivated to keep a close eye on the books. "What do they care," asks Rafferty, "if someone ripped off a million dollars if it's not their million dollars?"

Response to such inquiries varies. A U.S. News reporter called several groups, identified herself as a potential donor, and asked what percentage of board members donated. An executive assistant at America's Second Harvest answered cheerily: "All 17 members of the board contribute." Staffers at Easter Seals and the Cystic Fibrosis Foundation were stymied but promised to call back with an answer--and did. (All board members of both groups give.)