Use caution when solicited by charities

Requests for donations are plentiful during the holiday seaon and would be givers should beware.

Tips on giving inlcude:

• Be proactive in your giving. Smart givers generally don't give reactively in a knee-jerk reaction. They don't respond to the first organization that appeals for help.

• Never give out their personal information - like credit card accounts, social security numbers - over the phone.

• Be careful of sound-alike names.

• Confirm 501(c) (3) status. This is the tax-exempt status under of the Internal Revenue Code.

• Ask about spending. Effi- cient charities spend at least 75 percent of their budget on their programs and services and less than 25 percent on fund-raising and administrative fees.

• Concentrate your giving. When it comes to financial investments, diversification is the key to reducing risk. The opposite is true for philanthropic investments. If you've really taken the time to identify a well-run charity that is engaged in a cause that you are passionate about, you should then feel confident in giving it a donation. Spreading your money among multiple organizations not only results in your mail box filling up with more appeals, it also diminishes the effect.