What do these option do?
and what will happen when i done it?

It allows you to donate money to a specific charity. You usually have two charities to choose from (that change on occasion) and three choices for how much you want to donate. Once you donate, a halo will appear above your head and you will get a positive "donated to charity" moodlet.

EDIT

I believe you receive this option when your sim has the "good" trait.

Also if they have the evil trait I believe they can donate to evil charities and causes

actually if your Evil you donate to undermine the charities

thanks for the answers guys!

I LOVE being able to donate to charities... it helps me get rid of extra money when I need to

Would be nice if something resulted from it down the line though.

I totally agree. Maybe like something where you have less bills the more money you donate to charity? Maybe that's not what you were thinking exactly but that's one idea that came to mind for me =)

Other than the positive moodlet for donating there isn't any effect currently, though that MIGHT be a fun thing to add later down the road. Where if certain charities get certain cash numbers some side opportunities show up, rare animals/insects show up (preservation charities), or in the case of evil charities a death ray level someone's house. Just brainstorming but that would be the AWESOME.

I think it would be neat if there were a certain percentage of "evil" and criminal sims in the game if the actual ambient light changed in the game. Like it became desaturated and bleak looking while if your town were good and charitable the flowers looked brighter and the sunlight were sunnier.

Been playing Black & White recently Mistermook ?

I was thinking the same thing invock .

My personal favorite charity is "Pools without ladders" To bad it no longer works according to reviews, though I haven't tried it yet myself.