Think about what's most precious to you, Heisman suggested. Are you most concerned about the welfare of children, cancer patients, women, the homeless? Or do you aim to support education or the arts? Home in on what you want your money to accomplish.
Next, think about whether you want your gift to go to an organization that's national, international, regional or local.
Finally, seek out charities that do a good job serving that particular need in the geographic area that you've selected. You can do that by talking to your friends or by looking up charities on websites such as Charity Navigator, which lists charities by category.
INVESTIGATE
Charity Navigator provides ratings of charities, based on how much of their expenses go to programs versus administration, the charity's financial health and its effectiveness. But the group rates only the nation's largest and most popular charities. If your favorite cause is a local soup kitchen, you may have to check it out yourself.
Go there, Heisman suggests. See the operation in action and then ask for a copy of its most recent financial statement. (It is called an IRS Form 990.) Use that to see how much of the charity's money is going to finance its various programs and how much is spent on paying salaries and sending out marketing materials.
(A rule of thumb is to look twice at groups that spend more than 15 percent of their money on administration and marketing. But it's your money. You get to decide whether or not you think they're being wasteful or prudent.)
VOLUNTEER
If you're supporting local groups, you have the ability to make your money go further by donating time as well as cash, Kobara said.
"Organizations need all sorts of help and assistance," he said. "It's great to give a check, but if you can donate time, that's even better."
While it is obvious that you can help a soup kitchen by passing out bowls and napkins, some charities may need professional assistance, too.
If you can do bookkeeping or marketing for them, it improves their efficiency ratings and allows them to preserve cash for their programs.
It also can help you get a closer look at the organization, which can help you decide whether it's deserving of your donated dollars.
RECRUIT THE KIDS
Years ago, when I was trying to teach my kids about charity, I had them look through the World Vision Christmas catalog and asked them to think about having me give one of their gifts to someone else who would need it more.
They could see pictures of kids in Bangladesh, who could get five ducks for $30. Or they give somebody a goat for $75. My son, the athlete, could choose to outfit a school with soccer balls for $16. My daughter, the intellect, could sponsor an orphan for a whole year of school for $70. They were happy to have one less box under the tree, knowing that they were helping somebody less fortunate.
Gifts like these are particularly nice when times are tough because they remind your kids that, even if they have less than they had a year ago, they're still blessed, Kobara said. Another group to consider if you're getting your kids involved in giving is YouthGive.org, where kids write up profiles of various charities in an effort to get their friends and families to contribute.
CLEAN UP
Even if you don't have money and you don't have time, you probably do have some unused but usable household items that you could give to someone in need.
Consider cleaning out your garage, closets and attic. If you've got blankets or coats that aren't being used, it's particularly helpful to bring these to shelters now as the weather gets cold.
"If I had any recommendations about where to concentrate your giving, I'd say think about basic human services such as health care, homelessness and food pantries," Kobara added. "They are getting less money, and the demand for health care, shelter and food has increased well beyond their capacity to handle it."
Your budget may have you feeling as if you can't do much this holiday season, but if you give wisely, you may be able to have a bigger effect than you think.