FORT LAUDERDALE, Fla. — Competition for charitable donations during the holidays is getting almost as intense as the hunt for the season’s hottest toys.

There are more charities than ever before, and some are seeing record numbers of people coming through their doors for food, housing and financial support as the economy continues to sag.

And they are struggling as those same economic conditions stifle giving. The $307.65 billion Americans contributed to charities in 2008 was a 2 percent drop over the previous year, the first time that has happened since 1987, according to industry consultant Giving USA’s annual report released several months ago.

That’s why it’s more important than ever to do your homework before you write a check so that even a modest donation goes where it can do the most good.

“People have a limited amount of charity dollars. And even one dollar spent on a scam is one that won’t go to a legitimate organization that could use it,” said Tracy Thorleifson, an attorney with the Federal Trade Commission who specializes in charities.

By making a plan, rather than donating on impulse, you can come up with a gift that will make a difference in the lives of others — and not break the bank.

Kindness on a budget

Times are tight but you still want to give? You can if you get creative.

• Ask friends and family to give to a charity instead of giving you a gift. Give them a list of choices you already have researched.

• Volunteer your professional expertise. Doing accounting, marketing or paralegal work for your favorite organization saves them lots of money.

• Check whether your company will match your charitable donations.

• Join a giving circle, a network of people who pool their small donations for a shared cause. Go to www.givingcircles.org.

• Use a credit card that gives a portion of your purchases to a charity — but check that the percentage is high enough to be worthwhile. Some cards give only a quarter-percent. Compare rates at www.bankrate.com or www.cardratings.com, looking in the “cash back” category.

Good-giving benchmarks

Make sure your money goes to those in need, not into the CEO’s pocket. These are good general guidelines from the experts:

• Check an organization’s annual IRS 990 form and pick those where about 60 to a preferred 75 percent of a group’s money goes into programs; no more than 35 percent is spent on fundraising (10 percent preferred); and no more than 15 percent is spent on administrative costs.

• A CEO’s salary, in most cases, should be less than 3 percent of the total operating budget; the average salary nationwide is $160,000.

• Beware of charities that have run deficits for several consecutive years.

Check it out

These three sites rate thousands of charities and compile “best” and “worst” lists. They use different formulas, so results will vary. But a group getting good marks from all probably is a safe bet.

• Charity Navigator: Four-star rating system. Online data free. Go to www.charitynavigator.org or call 201-818-1288.

• American Institute of Philanthropy: Letter grade rating system. Lists and some other information free. Go to www.charitywatch.org or call 773-529-2300.

• Better Business Bureau’s Wise Giving Alliance: Reviews performance based on 20 standards. Online data free. Go to www.give.org or call 703-276-0100.

General tips

• Be aware that most charities are exempt from state and federal “do not call” registries. But if the organization is using a professional telemarketer for soliciting, as many do, they must take you off their phone list if you ask. Report those that persist to the FTC at www.ftc.gov or call 877-382-4357.

• Carefully check out organizations soliciting for veterans, military families or victims of recent disasters. These are some of the most common pitches used by fraudulent operations.

• Never send or give cash donations.

• Ask for a receipt showing the amount of your contribution.

• Make sure your charity has a 501(c)(3) IRS designation if getting a tax deduction is important. Not all nonprofits are tax-exempt.

Tips for charities

Times are tough out there in gift-giving country, so the folks who manage America’s charities are searching for ways to recruit new contributors and to squeeze more cash out of the long-timers. Here are some of their ideas:

• Ask potential givers to donate via credit cards. This helps increase donations, as philanthropic professionals have discovered in recent years. • Ask each of the charity’s board members to give a certain minimum annual contribution. A reasonable contribution is $5,000 a year.

• Ask board members to sponsor fundraising events at their homes. For example, host a string quartet concert where local musicians perform for free and ask the audience for donations of $50 each.

• Remember, the more a charity can demonstrate that it performs real benefits for the community, the more people are likely to give.

— MarketWatch