There are few things in life more satisfying than making a charitable gift. Whether it's to a cause we care about, an organization doing good work in our community, or to victims of a faraway natural disaster, it feels good to give to those in need.

That said, a charitable gift is still a financial transaction. Which means it deserves to be considered with the same degree of care you'd devote to investing, estate planning, or any other part of your personal finances.

If you're thinking about making a charitable gift over the next few years, you face a variety of options. Whether you're donating cash, stocks or other investments, or that old painting you found in grandpa's attic, it's a good idea to make yourself familiar with the pros and cons of each method of giving, so you can choose the one that's right for you.

* Cash

Probably the simplest method of charitable giving is the cash gift: you write a cheque, and the charity provides you with a tax receipt for your donation. The benefit of cash is easy to see-you can make your gifts when you can afford to, and you can give when the charity needs it most. On the other hand, cash gifts receive no special tax treatment, other than the donation tax credit.

* Gifts in kind

The official name for gifts of stock, mutual funds, real estate, and collectibles (art, antiques, and other items of cultural value). The tax credit you receive is based on the property's fair market value. A good option, particularly with gifts of securities, which receive preferential tax treatment on any capital gains realized when they're donated to a registered charity.

* Life insurance

There are a number of ways to give using life insurance. If you make your charity the owner and beneficiary of an existing life insurance policy, you realize a policy gain in income, but you can claim the cash surrender value of the policy, and any ongoing premiums you make result in donation tax credits. Alternatively, you can make your estate the beneficiary of a life insurance policy, and include a provision in your will for the donation. In such a case, your estate will receive a receipt for the amount of the death benefit. Be aware, however, that depending on the size of the policy, your donation could generate more donation tax credits than can be used on the final tax return.

* Charitable remainder trust

With this giving method, you pass property intended for a charity to a special trust. You receive an immediate tax receipt for the property, but retain the right to use and derive benefits from the property as long as you are alive. Upon your death, the property passes directly to the charity. Such an arrangement is surely not suited for everybody, or for all types of gifts, but it is an ideal way to give real estate (a recreational property, for example), or fixed-income assets (a bond portfolio, for example).

* Private foundation

Perhaps the most complicated giving method, and one that is best suited for wealthy individuals looking to give a substantial donation. While there is no minimum on the amount of money that could be placed in a private foundation, but the administration and legal costs make it prohibitive for gifts of less than $1-million. The exact structure of a private foundation is rather complicated (and requires specialized legal advice), but in the most basic scenario, the giver establishes a private non-profit organization, and assigns assets to that organization in exchange for a tax receipt. The giver appoints a trustee to oversee assets and a group of directors to oversee a series of ongoing grants. As long as the foundation continues to follow the appropriate government rules, assets can compound within the foundation free of tax. This can be an excellent way to establish a long-lasting charitable legacy-foundation assets could theoretically grow far beyond the size of the original gift. However, establishing a foundation requires significant commitments of time and money.

So, which giving structure is the best for you? There's no right or wrong answer to that question. If you're interested in making a charitable gift, be sure to speak to a financial professional with experience in the field. Simply put, a professional opinion makes it that much easier for you to get the most bang for your charitable buck.

The information in this article is not intended to constitute legal, financial planning or investment advice, and it may not be relied upon for such. Please seek specific professional advice with respect to your particular circumstances, as each client's financial situation is unique and solutions may vary. The strategies discussed herein are general. Mutual funds are not guaranteed and their values fluctuate on a daily basis. Investments may decline in value and investors may or may not receive back the original amount invested.