Editor’s Note: Liz Peek is a financial columnist and the author of wowOwow’s Wall Street Weekly. Liz Peek’s SHEconomics series, herewith, is scheduled to become a book. Click here for your introduction.

Sister, can you spare a dime? Or maybe even a quarter? After the year we’ve had, it’s hard to think about giving money away. But the jingling of Salvation Army bells, piles of toys for needy children, coat drives for the homeless – all these remind us of those who are cold or hungry – or alone. No matter how dreadful our situation, there is always someone who’s worse off.

Welcome to SHEconomics. In the spirit of the season, this segment discusses charitable giving – and how to avoid being fleeced by the Bernie Madoffs of the charity circuit.

Let’s assume that you would like to make a year-end gift. Which of the hundreds of thousands of worthy causes should you give to? How do you make sure your contributions are put to good use, and not sending some scoundrel to Antigua for the holidays?

This is not a simple matter. Think about Warren Buffett, considered by many to be the smartest investor in the world. When it came time to give his money away, he realized he had no experience in the field whatsoever. Thus, he turned over his wealth to Bill Gates who, with his wife, has set up a giant foundation, researched the causes that appeal to them, and established the means to distribute his Microsoft money. If Warren Buffett needed help, so might we all. Admittedly, few people will be making the kinds of grants that Buffett can muster. Still – I want to make sure my money is used wisely, don’t you?

Naturally, your decision will depend mainly on your personal interests. You may be concerned about global warming, or literacy, or helping out the homeless. But once you have selected the kind of cause that interests you, how do you go about finding an organization that fits the bill?

Most of us tend to give money to causes that our friends support, or to groups that send persuasive letters in the mail. There are also, of course, those outfits that call during the dinner hour; I do not deal with them. First, it annoys me like crazy to be interrupted at home. Also, I refuse to be rushed into making a decision. I always request that they send me their material through the mail – and I would encourage you to do the same.

Indeed, the Federal Trade Commission has singled out such telemarketers as an especially problematic breed. The FTC urges us not to reveal any bank or credit information over the phone until we have checked out the charity by getting its name, telephone number and address, calling to confirm that it is making the appeal, and then doing thorough research.

The government advises against cash donations. The FTC also cautions against requests made by e-mail. Most legitimate charities do not solicit via the Internet; numerous frauds have been launched in this manner, often using a soundalike name and creating a convincing website. Always, always make sure to check out the charity and ask for a receipt.

Unfortunately, there is a veritable army of cheats out there looking to separate you from your hard-earned money. This is especially true after any large disaster, when people are particularly vulnerable. For example, the devastating earthquake in China spawned numerous bogus outfits that capitalized on people’s sympathy. Also taking advantage of our good impulses is the widespread use of “police” or “firefighter” in a fake organization’s name.

I have encountered a group that calls frequently, aggressively demanding money for our local policemen. As it happens, this is not a charitable organization, but rather a union affiliate. I do give money each year to the New York Police and Fire Widows’ and Children’s Benefit Fund – a legitimate outfit that helps the surviving families of those killed in the line of duty. This other group pretends to be a charitable organization but is not. One easy test for this claim is simply to ask if donations are tax deductible. All real charitable gifts can be subtracted from your gross income for income tax purposes. If the caller hems and haws about this, hang up.