Along with reflection, resolution and celebration, the end of the Gregorian year inevitably brings thoughts of…  tax preparation. Most U.S. businesses and individuals operate on a fiscal year that is tied to the calendar year.

The end of the year can be  a time to consider last minute contributions to worthy, and tax-deductible, causes. Those causes, in case you haven’t noticed, have been filling in-boxes, mailboxes and voice-mails with everything from gentle reminders to downright guilt trips.

Charitable giving in the U.S. has declined dramatically during this recession. The nation’s 400 largest charities saw an 11% reduction in revenues last year and predict a similar situation for this year.  Total giving, of large and small donations to organizations of all types and sizes, declined 3 – 4% last year. According to GivingUSA, this was the largest decline documented since they began this annual reporting in 1956.

How to choose?

With so much belt-tightening and so much need all the way around, it can be hard to prioritize. A number of companies take the scattershot approach, sponsoring banquet tables and reacting to requests with gifts that might increase their exposure.

Some people believe that philanthropic initiatives – like diversity initiatives – should be motivated only by shared human values such as compassion, generosity and kindness. Indeed, many who donate in this spirit will give anonymously to ensure the purest altruism.

Yet, economic constraints don’t discriminate. The recession has hit the anonymous and the named, the non-profits and for-profits – all alike.

Targeted philanthropy is a significant tool in the business-building toolkit. It can help with company positioning and customer loyalty. It can help engage employees and increase both job satisfaction and pride.

These questions can help you shape giving decisions:

• What causes are most important?  What problems do you most want to help solve with philanthropic dollars?
• What business objectives might be furthered by a philanthropic partnership?
• What charitable organizations offer opportunities that match both of these purposes?
• How effective are these organizations in achieving their missions? How is this effectiveness measured?
• How do these organizations recognize donors?
• How will you track donations and their impact?

As 2010 rolls out, think not just about the check you can write today, but about the philanthropic strategy you will use throughout 2011 to build your business. Assemble a team of diverse people with diverse interests and organizational responsibilities to help plan and guide the process.

Finding mutual benefit in charitable donation is not ignoble. In fact, it can be a highly effective way to leverage scarce resources.