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The Federal Trade Commission received 1,843 complaints of charity fraud in 2007. But the number of incidents is probably far greater because most contributors don't realize they've been defrauded, says Lois Greisman, associate director of the FTC's division of marketing practices.
Donors increasingly are seeking more accountability from the charities they help, says Bob Ottenhoff, president of GuideStar, a Washington, D.C.-based clearinghouse for the USA's more than 1.7 million non-profits. Many donors continue to steer dollars to religious, educational and health care institutions, but more are donating to groups that focus on a pet cause; as a result, they're "raising their expectations of what they expect an organization to do and how they expect it to perform," he says.

Ottenhoff and other watchdogs urge people to do a little homework before making a donation to ensure that their money goes to the cause or community for which it was intended.

USA TODAY's Charisse Jones examines tips and resources to guide your giving:

Q: What's the first step in picking a charity?

A: Focus on your interests and priorities. Do you prefer an international relief organization or one that specifically serves your community? A new group that has an innovative mission or a long-standing charity that has shown it can deliver?

"So often … we give as a result of a phone call, or perhaps a piece of mail we got or even someone we met on the street," Ottenhoff says. "And that's fine to respond with your heart, but we also urge donors to give with your head."