Donating to causes based purely on cute photos of endangered animals, haunting images of starving children or the high-pressure tactics of potentially fraudulent charities is a faulty way to give.

This is the warning message of a newly-published book, which happens to coincide with the industry watchdog flexing the full might of its regulatory muscle against three charities for the “most serious” of breaches.

In The Most Good You Can Do, the Australian philosopher and ethicist Peter Singer argues that giving should be logical so that the money can be most effective.

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Only three in 100 givers do research to find the most effective charity, Peter Singer says in his book. Photo: Getty

“Some charities do hundreds, even thousands, of times more good per dollar than others,” writes Mr Singer, who believes, for example, that restoring sight does more good than training guide dogs.

Describing the situation in the USA, the author says a small number of charities are “outright frauds”, while “very few” are transparent enough to allow givers to make a truly informed decision.

Fraud, mismanagement and waste are valid concerns here too, with the charity watchdog – the Australian Charities and Not-for-profits Commission (ACNC) – revoking the registration of three organisations on March 10.

Secrecy provisions in the law prevent the watchdog from telling The New Daily exactly why the three charities (Young People For Tomorrow Ltd, The Trustee For First 24 Hrs Foundation and Mununjali Traditional Custodians Ltd) have been deregistered and stripped of their tax exempt status, but it is understood that action of this severity is rarely taken.

The charity industry is broadly trustworthy thanks to the “quite considerable powers” of the watchdog, ACNC Commissioner Susan Pascoe says, but she warns that scams and waste do occur.

“I think it’s fair to say that, of the complaints we’ve had, a small number relate to charities wasting or misusing givers’ money,” she says.

With that in mind, here is how we can ensure our donations do the most good.

Find where you can be effective

The best strategy, writes Mr Singer, is to ask yourself where you can make the most difference.

For example, in the 1970s, Mr Singer chose to devote his energies to preventing animal suffering, as there were already plenty of people campaigning against global poverty, the Vietnam War and nuclear weapons.

In today’s context, the author argues that donating to malaria prevention is more effective than climate change because mosquito nets are certain to save lives, whereas governments may continue to ignore climate change.

He admits that comparing causes is difficult, sometimes impossible, but says givers should still try to use logic to do the most good.

Do your research

Financial records of registered charities can be found online.

The first step should always be to check the national charity register, Ms Pascoe says.

“If the charity is registered with the ACNC, it means they’ve been through a checking process, and it also means that they have kept up-to-date with providing us with annual information,” she says.

If you prefer an overseas charity, check that it is a member of the Australian Council for International Development (ACFID), which self-regulates the international aid sector.

Avoid high-pressure situations

Street fundraising, known also as ‘chugging’ (charity mugging) or tin rattling, is a controversial and sometimes costly method designed to drum up donations directly from pedestrians.

Phone calls and door knocking are also used.

Ms Pascoe says these high-pressure tactics frequently result in complaints to her office.

“Even though sometimes it’s a really worthy cause, people don’t like being stopped in the street and they don’t like being put under a sense of pressure,” she says.

“My sense is that any individual should feel free to politely say no and walk on.”

Being put on the spot also prevents you from making the reasoned decision that Mr Singer recommends, so it may be more effective to research quietly at home and then approach your favoured charity directly.