Take care: Make sure the charity you are giving to is registered. This is important if you are hoping to claim a tax deduction but will also prevent your money going to an unscrupulous organisation or individual. Status: Verify that the organisation has tax-exempt status. In Hong Kong, the Inland Revenue Department publishes an annual 'List of approved charitable institutions and trusts of a public character', see www.info.gov.hk . Adjustments are made quarterly to record organisations that are dropped from the list. In the United States, similar information can be found at www.irs.gov . Cash counts: In Hong Kong, donations of money - not goods or property - made to approved organisations or trusts for charitable purposes are eligible for tax deductions in the year they are made. Minimums: The donations must not be less than HK$100 to gain tax exemption in Hong Kong. Deduction limit: The tax deduction in any year cannot be more than 10 per cent of your assessable income. Nothing in return: In order to gain a tax deduction, you cannot receive anything in return for your money. For example, paying for a grave space, buying raffle tickets or tickets for charity balls are not eligible. Background check: Scrutinise the organisation's background before you hand over your hard-earned cash. Make sure it has a clearly stated purpose and a programme consistent with that purpose. Big organisations such as Oxfam and the Red Cross keep the public informed via their Web sites as to the percentage per dollar that makes it past administrative hurdles to the needy. Accountable organisations should provide you with detailed financial information on request. Online gifts: For donating online, use the charity's own Web site if possible. If you use a 'philanthropy portal' that lists charities, ask how much of your donation will actually go to the charity. Privacy: Check a site's privacy policy and whether the site is secure before you hand out your bank account or credit-card details. Big sums: If you are of high net worth and donating a significant sum, it is best to see a tax lawyer or accountant to ensure your gift is structured correctly and made at the right time. The same applies if you are the citizen of another country or the charity does not operate in Hong Kong. There are pitfalls in estate planning and tax that the experts can help you to avoid. Graphic: trigg1gwz