Companies large and small know that corporate giving to charitable causes is not just in their best interest, but is the right thing to do. Yet, in these tough economic times, making a corporate donation to a charity has become very challenging.

So, companies need to get smarter about how they invest their charitable donations. Here are a few tips to make the decision process easier.

• Consider the administrative overhead costs for the charity. Check out how low and effective their administrative and fund-raising costs are to determine if your donated dollars are really going to the cause. A great resource is www.Guidestar.org.
• Are you considering this donation for charitable purposes or for marketing purposes? Often, sponsorship of charity events has a marketing purpose, in that promotion for your company through the event takes place. If the audience for the event is one that you need to get in front of, then it's a marketing decision and not a charitable-giving decision.
• How does this giving request fit with your company mission? A charity's purpose or request just might be significantly aligned with your reason for doing business, and that makes it a good reason to give.
• Understand the ask and figure out what else -- beyond dollars -- your company can contribute. Often, in-kind donations are just as valuable as dollar donations to a charity because a charity can reduce its overhead costs. Perhaps you can lend staff or consulting expertise the charity doesn't have.
• Finally, think about what value you can add with your donation. Just because a charity has asked for a donation doesn't mean you can't enhance it. For instance, are you able to open some doors for the charity through your business and professional contacts? Are there logical partnerships that you can facilitate? Can you create a challenge for additional giving beyond your company?

Just because it's a tough economy doesn't mean your charitable contributions can't be great!