Planning ahead can provide major benefits.

Every year, more people are claiming gifts to charities as tax deductions. So is it worthwhile and what is the best way to do it?

For a donation to be tax deductible the recipient charity organization, fund or authority must be classified as a deductible gift recipient (DGR). The Centre of Philanthropy and Nonprofit Studies at the Queensland University of Technology says in 2005 there were more than 19,100 endorsed DGRs in Australia.

Welfare and rights organizations such as the Cancer Council and Alzheimer's Australia made up 55% of DGRs, while educational and cultural organizations such as the University of Canberra and the Australian War Memorial made up 20 per cent and 13 per cent respectively.

To find out if an organization is a DGR it is best to search the business.gov.au website.

We at Advantage One would say you shouldn't give to charity just for the tax deduction, as the tax saving will be less than your donation.

But if you plan for the long term and consult an accountant or financial adviser like Advantage One, there are benefits to be had.

What if you adopted a more long-term approach to charitable giving? What if you brought forward your future donations to the current year? And at the same time you could adopt a more strategic approach to charitable giving, by considering where your donations could make the greatest impact.

This would mean you could save tax and make a greater impact with your philanthropic goals.

When considering your charitable giving strategy it is important to:

1. Articulate your philanthropic goals (family involvement, level of control, areas of concern).
2. Distinguish between one-off donations versus a longer term strategy.
3. Consider your cash flow needs and your tax liabilities (refer to your accountant).
4. Appreciate that different structures for giving have varying levels of control, compliance and responsibility.

Timing is also imperative. You should plan at least three months ahead, giving ample time to establish a preferred "philanthropic structure", and implement your chosen path before June 30 of the same year as your tax liability.

One way to donate is through workplace giving. The Australian Taxation Office says if an employer has a workplace giving programme in place, employees can donate money through the payroll system to one or more charities. The donations are made on a regular basis under a planned fortnightly or monthly arrangement.