As the year draws to a close, the 2006 Foolanthropy interactive charity drive is already in full swing, with this year's five charities already selected. Members of the Fool's discussion boards are already doing their part, as the Fool has again decided to donate two cents for every post made to our discussion boards, as well as every pitch or blog entry to Motley Fool CAPS, during the month of December. The charity that raises the greatest amount of donations by Jan. 7 will receive an additional $10,000 gift from the Fool, while the proceeds of the "My 2 Cents Campaign" will be split among the other four charitable selections.

Whether or not you decide to make charitable gifts through the Foolanthropy campaign, there are plenty of worthy charities that need your support. From local organizations that make a clear and visible difference in your own community to international charities that fight hunger, disease, and the results of natural disasters and other catastrophic events, you'll be able to find a charity that reflects and supports your own particular values.

Once you've decided on the charities to which you'd like to make gifts, the next step is figuring out how you want to follow through with your giving. Here are a dozen ways you can provide much-needed assistance to the charities of your choice.

1. Give cold, hard cash.
It may not seem very creative, but gifts of plain old money are sometimes the most useful contributions that charities receive. Although you may think your modest check may not make a significant difference in comparison to huge donors, keep in mind that with large gifts often come restrictions in the way charities can use the money. By making unrestricted gifts of cash, you give the charity the flexibility it needs to put resources where they can do the most good.

2. Use appreciated stock.
If you own stock that has risen in value, you'd have to pay capital gains tax on your profits if you were to sell the shares. However, if you give those shares to charity, you not only get a tax deduction for the value of your gift, but you also don't have to worry about paying tax on your profits. This double benefit makes giving appreciated stock especially valuable to many donors.

3. Get your employer involved.
Before making a gift, check and see if your employer offers any type of charitable matching program. Some companies will match whatever charitable gifts you make with an equal donation of company funds, giving you the opportunity to get twice the money into the hands of your chosen charity.

4. Let your IRA do the giving.
For the first time, certain donors aged 70-and-a-half or older can make distributions of up to $100,000 from retirement accounts directly to charity. Although these donors won't get a tax deduction for their contributions, they won't have to pay tax on their retirement account distribution.

5. Put a charity in your will.
Even if you can't spare much money now, you might want to consider leaving a more substantial gift after your death. Adding a testamentary gift avoids the uncertainty of giving away money that you might need yourself for your own expenses.

6. Give and you can receive.
Depending on the charity, you may be eligible to receive a merchandise item or other gift back from the charity if your gift exceeds a certain amount. Remember, however, that you generally may not deduct the full amount of your donation if you get an item back; instead, you have to reduce your deduction by the value of what you received.

7. Keep your credit card in your wallet.
Many charities accept donations by credit card in order to facilitate giving by donors. However, keep in mind that charities usually have to pay the resulting merchant interchange fees, which can be as high as 5%. Of course, using a credit card to give is better than not giving at all, but better still is a gift by cash or check.

8. Get income back with a planned gift.
Some charitable giving strategies, including charitable gift annuities and charitable trusts, allow donors to receive a future stream of income from the charity. This can be a good way to make a substantial gift now while preserving your desired level of income.

9. Let the IRS supplement your giving.
For those who itemize their deductions, charitable giving is cheaper than it looks. A donation of $100 may save you $35 or more on your income taxes. If your $100 donation actually costs you only $65, you may be able to give more than you first thought.

10. Give your time.
If you're short on cash during the holiday season, look into how you can help your favorite charity by volunteering your time (see Volunteering 101). Almost all charities need people to do time-intensive administrative tasks like making phone calls, helping with mailings, and preparing for fundraisers.

11. Give your expertise.
Even if you don't have a lot of spare time, you can help charities by lending them your business knowledge. You may be able to teach people involved with your charity about skills that will help them be more effective.

12. Give it forward.
Giving is about more than just money. Teaching children and other loved ones about the importance of giving ensures that the generosity of your community will continue far into the future. Take the time to explain how making charitable gifts reflects your values.

For related reading:

• Why Bother Investing?
• Charity Warning Signs
• Fun With Charitable Gift Funds

Fool contributor Dan Caplinger sees the value of charities in his work every day. The Fool has a disclosure policy.