Donating time and money to help those in need should be something we do all year long. However, it seems that we often wait to loosen the bag strings and reserve time until the holiday season. In a study of charitable giving published in the Huffington Post, it was found that 1 in 2 adults were likely to donate during the holidays, and even in tough economic times, 47% of unemployed people said they would donate too.

In 2010, American donated more than $290 billion to charity. Although this is far less than money spent on retail purchases or money set aside in investment accounts, it is a BIG number. Giving has the power to not only improve the lives of others, but it can also be very rewarding for you. Aradhna Krishna, a marketing professor at the University of Michigan, said giving to charity has been shown to increase a person’s feeling of satisfaction.

This may be giving you that warm and fuzzy feeling, but with over 1.7 million charities competing for your well-earned and well-meaning dollar, how do you know where to donate and how?

Health.com interviewed Ken Berger, president and CEO of Charity Navigator, the nation’s largest evaluator of charitable organizations. Berger said: “We’ve seen cases where up to 95 cents goes to the fundraising agency, not the charity.”

Avoid scams and donate your time and money where it can make the biggest difference. Use these tips and suggestions to get into the spirit of giving wisely.

Smartmoney.com provides great advice on how to make sure your contributions are well spent. Know the organization. A charity is a non-profit, tax-exempt organization. When considering donating, please do your homework.

Be picky! Choosing the type of charity you want to get involved with is not easy. There are many options and ways to give. From religious to educational charities. From monetary donations, to time and tangible goods. What and to whom would you like to give away?

Is the charity financially sound? Organizations like Charity Navigator and Guide Star research the largest charities in the country. It provides lists of the best and worst charities, including the top 10 charities that overpay for their for-profit fundraisers and the top 10 charities in deep financial trouble.

Is the organization legitimate? The charity must be in good standing with the Internal Revenue Service and not violate the USA Patriot Act, which, among other things, regulates foreign transactions by charities. The IRS has regularly updated data on charities that are eligible to receive tax-deductible charitable contributions and, if so, how much of your contributions are tax-deductible.

Do your research. Ask questions. Be sure to invest as much time and money as your budget and schedule allow. This is supposed to be something to feel good about, not stress about.

Tax deductions. To claim a deduction for cash or property contributions of $250 or more, the IRS says you must have a bank record, payroll deduction record, or written acknowledgment from the charity showing the amount.

Make sure your money goes where you say it goes and it will have the biggest impact! Experts say healthy charities spend 75 cents of every dollar on programs and services, with no more than 15 cents going toward administrative costs. This information can also be found in Charity Navigator and Guide Star.

Don’t be pressured into donating and don’t be fooled by the online or telemarketing scams that are rampant this time of year!

Don’t know where to start giving your time or donations? Read on for more tips.

Use a search engine that gives. Helping to raise money for charity can be as easy as surfing the Internet. Using a search engine like Goodsearch.com generates money for a cause as you use the Internet. Powered by Yahoo, this site donates about a penny per search to a charity or school you designate.

Shop with a cause. If you do your holiday shopping online, consider using a site that gives you a percentage of your purchase or any cash back rewards you earn to charity.

Goodshop.com works with more than 2,500 retailers (including Amazon, Gap, Target, Staples and Macy’s) to return a percentage of almost every purchase to a charity or school of your choice.

The BoxTops4education.com Marketplace features over 150 retailers who donate a certain number of eBoxTops (worth 10 cents each) for every qualifying $10 purchase to a school of their choice.

Sign up for a free account at Extrabux.com and shop online through the site, you can get cash back on purchases and choose to have that money donated directly to charity (instead of having it sent to you by check or PayPal).

Donate your time. Many groups need additional volunteers during the holidays to help those in need. The time you set aside can be just as valuable as a monetary donation. The more you can interact with the people whose lives you are impacting. Some employers may even match your volunteer hours with funds. For example, Microsoft will match volunteer time at $17 an hour through its Volunteer Time Matching program. Check with your company’s human resources department to find out if it has a similar program and what the requirements are.

Donate your stuff. One man’s trash is another man’s treasure or life preserver. Clean out your closet and donate the things you no longer want. For example, if you have old utensils, plates, pots and pans, check with your local Salvation Army or soup kitchen to see what items are needed to prepare and serve holiday meals. You can claim a deduction for donated items on your tax return if you itemize them. Goodwill has a donation value guide that can help you determine the market value of the items you donate.

Do you have a new or used bike that you are trying to get rid of? Do you want to go global with your donation? Donate your bike to Bikes Without Borders or Wheels of Change International. These two organizations collect bicycles to use as ambulance bikes and also create jobs for communities in need in Africa.

If you’re looking for more creative ways and different organizations to give, Forbes.com suggests “101 New Ways to Give.” With charities to help animals, people in poverty-stricken countries, and fighting disease, this is a list that has something for everyone. Now you can’t choose not to give because you don’t know how or to whom to give. Do your research and find one that speaks to you!

Give out of yourself this holiday season!