While the percentage of donations that go directly to the cause is important, it's not the only factor that givers should consider.

True or false: The less a charitable organization spends on administration and fundraising, the more effective it is.

If you answered "true," you think like many generous people who support charitable causes. The correct answer: "Perhaps; perhaps not." As Warren Wolfe's recent article on a crisis counseling nonprofit shows ("Crisis center finds itself needing help," Dec. 24), a charitable organization can find itself struggling financially when it tries to satisfy the prevalent donor myth that the lower the administrative costs, the better.

It's easy to see how this myth came about. As a donor, I want as much as possible of my hard-earned contribution to benefit the people the charity serves. After all, I believe in its mission; that's why I'm making the contribution.

Ah, but there's the rub. To carry out its mission, a charitable organization must be more than simply a conduit of money from donor to those served. Every good nonprofit needs strong administrative personnel and systems, a long-range strategic plan, a governing board educated about the organization's operating environment, effective fundraising and donor-relations activities. The costs to accomplish each of these can't be considered program-related (nonprofit accounting rules dictate that all costs must be categorized as either "program," "administrative" or "fundraising"), but they help ensure long-term program success.

One of 16 accountability standards articulated by my organization, the Charities Review Council, addresses the use of funds. The standard advocates that at least 70 percent of an organization's annual expenses be related to program, leaving no more than 30 percent for administration and fundraising (we apply the standard using a three-year average in order to even out occasional peaks). The 70 percent program ratio is a longstanding expectation, but it's simply a floor, established to help donors identify the small minority of charities that are largely fundraising machines or are blatantly inefficient. Beyond the standard, a higher or lower percentage spent on programs does not necessarily mean a charity is "better" or "worse."

Factors having nothing to do with programming effectiveness can cause nonprogram costs to vary, such as:

• Size: Smaller organizations tend to have higher administrative ratios because their compliance requirements are the same as for larger organizations.

• Age: Newer organizations take time to get smoothly running administrative systems in place and develop adequate donor support.

• Mission: Organizations whose missions are controversial or less emotionally appealing may need to work harder to elicit contributions from donors.

• Accounting: IRS guidelines simply call for "reasonableness" in allocating overhead costs between program, administration and fundraising, but there's no standard way of doing so.

As you make contributions, rather than focusing primarily on how much a charity spends on administration and fundraising, ask yourself whether the mission of the organization resonates with your values. Can it show that its programs are making a difference? Does it make it clear what it will do with your contribution? Does it work to meet accepted standards? (The Charities Review Council 's website, smartgivers.org, can help you.) If you can answer yes to those questions, you have a strong foundation for making an enlightened -- and satisfying -- donation.

Rich Cowles is executive director of the Charities Review Council, a St. Paul nonprofit organization that provides tools and resources for giving decisions.