I was wondering if anybody knows what I need to do step by step to create a charity organization? And what are some good ideas on what the charity should be donating to? Please help

You just cant 'create' a charity out of thin air, or on a whim. Licensing issues have to be in place. Otherwise it would be viewed as fraudulent and a federal offence.

As tickle mentioned... its nowhere near as easy as just deciding to do it.

Hire an experienced lawyer who can guide you through all the legal requirements. Miss just ONE requirement and you are no longer a legal charity.

Start with the causes that you care about and learn the old fashion way, get INVOLVED by doing the work of a charity. Once you take that first step as a volunteer, the rest will come.

A charity basically takes money from a donor and gives it away as a non profit. Where are you going to get seed money? Where are you going to get money to live? Unfortunately people are skeptical of charities and non profits when, for example, the administrative costs are high(read-salaries) Here is an example:

"American Tract Society (http://www.atstracts.org/)Administrative expenses: 68.0%
Topping the list of America's worst charities is an organization that spent more than $1.6 million dollars on its administrative expenses in 2007, over twice what it spent the previous year. The American Tract Society (http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=6713), based in Texas, distributes religious literature to spread its message around the world. With a history of low ratings from Charity Navigator, the group's administrative expenses have consistently outpaced the amount of donations coming in".