Giving generously should be a habit for each of us with means, and since United Way kicks off its annual campaign each fall, now is a good time to begin considering the costs and benefits of making charitable contributions through United Way versus writing checks directly to the NGOs and nonprofit organizations you care about most.

And, like most questions in economics, economic analysis can’t tell you what the right answer is for you—but it can help you understand the question better.

The United Way model is straightforward. Though each local agency is independent, governed locally and individually incorporated, its global umbrella United Way Worldwide targets three areas of impact: health, education and economic mobility. And for lots of us who give each year through a payroll deduction, each local United Way makes it convenient to give to organizations in our communities addressing these issues.

Many people give through United Way because it helps them economize on gathering information about the charities in their community they potentially could support. Suppose, for example, your family has decided to give 10% of its annual income to charity. You might choose to donate more or less, of course, but 10% harkens back to the Old Testament concept of “tithing,” and if nothing else it makes for a convenient benchmark.

If you simply write one check to United Way for the full amount, you don’t have to personally do the hard work of discovering all the not-for-profits in your community and then investigating their financials and outcomes. The organization does this for you. Taking United Way of Lee, Hendry and Glades Counties as one example, its website states that almost 500 volunteers do all the legwork when it comes to scrutinizing local charities for inclusion in the annual campaign. Working in more than 40 teams, volunteers review local charities and then make recommendations to the local United Way board of directors. Those recommendations are incorporated when the board decides how to appropriate funds to local organizations each year.

In a sense, when you give to United Way you are economizing on information-gathering by outsourcing it rather than doing it yourself. This makes investing in your community look a lot like investing your savings in financial institutions, such as banks and managed funds. Every time you make a bank deposit, your bank turns around and lends out your money all over town. But a key reason you trust your bank with your money is that you believe the bank scrutinizes its borrowers before lending them your money, just as United Way scrutinizes its local partners.

But just like anything else in economics, there are obvious trade-offs to giving to United Way. And the most obvious is that it’s harder to fine-tune the allocation of your contribution to the charities that most closely share the passions of your heart when it comes to making a difference in the world. When you delegate information-gathering to United Way, you also restrict the appropriation of your contribution to only its approved partners. And unless you take the additional step of earmarking your United Way contribution for specific uses, then United Way decides how your funds are distributed.

On the other hand, you could allocate your tithe on your own—and give directly and exclusively to the organizations that have missions and visions that most closely align with your personal priorities. Lots of organizations “make a difference,” but only a few might be doing what you are most passionate about. So, the trade-off is this: If you directly allocate your money as you see fit, you also have to gather information yourself about the charities you might support. And that’s hard work.

So, as we move into United Way season, it seems there are three strategies you might pursue. First, if it’s more important to you to “give back” to your community than to fine-tune your donations, then United Way is likely right for you. Economists have a name for the positive feeling people get from giving, regardless of whether it makes a difference: We call it the “warm glow effect.” Plus, United Way gives you the added benefit of checking out its partners for you.

Second, you could donate individually—including to organizations not in United Way—thereby making sure your funds follow your heart. But that will require effort.

And third, you could diversify. If giving to “the community” is important to you, but there are also a few charities doing work you especially admire, then by all means split the difference and do both.

A dollar you donate in one place can’t be donated elsewhere, so consider the trade-offs carefully.

Victor V. Claar is an associate professor of economics in the Lutgert College of Business at Florida Gulf Coast University.