The First Step is to Establish What You CARE ABOUT

How do you decide where to put your energy, your skills, or your money to help others? The first step is to establish what you care about. As with anything else, you'll be most successful in giving back when you let your values drive you.

For example, ask yourself these questions: What have been my three most formative life experiences? Who are the three people who have influenced me the most? Your answers will help define your top-five values. From there, you can determine your community values.

Then ask yourself, Do my values match up with how I'm now giving? Your answer may surprise you. You might find that for years, you've given to university scholarships when what you really care about most is homelessness. Or vice versa.

Once you've decided on your true interests, rather than taking immediate action, learn about those topics. "Illiteracy," "homelessness," "environment": These are huge words. Learn what the issues are and where you might best place your time and your resources. And then, when you begin, remember that it's not about you, your voice, or your brilliance.

I learned that lesson the hard way back in the 1960s, when I decided to help fix up a poor Boston neighborhood. With the hubris of youth and naivete, I thought that I could fix the people too. Needless to say, that didn't go over too well. When it comes to giving, you have to guard against your own hubris. It's the really talented donor who can enter a situation and provide sensitive, wise advice and help -- without assuming the kind of arrogance that often comes with doing so.

Peter Karoff worked in real estate and insurance before forming The Philanthropic Intiative Inc. in 1989. TPI helps clients such as the AOL Foundation and Citigroup Private Bank increase their impact by developing innovative, strategic approaches to philanthropy.