November 17, 2025
Scammers exploit generosity year-round, but during the holiday season—when giving surges and emotions run strong—they strike hardest.
Not long ago, officials dismantled a huge telefunding scam that made a staggering 1.3 billion fraudulent donation calls and swindled unsuspecting donors out of over $110 million (Federal Trade Commission).
Meanwhile, Cornell University researchers uncovered that more than 800 social media accounts run donation scams, funneling people toward fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single misstep in charitable donations risks more than financial loss—it can link your brand to fraud, tarnish your reputation, and undermine trust with clients, partners, and community members.
Learn how to carefully vet fundraisers, spot warning signs, and protect your business and goodwill during this giving season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will transparently answer these key questions:
- Who is behind organizing this effort, and what is their relationship with the cause beneficiary?
- What is the precise purpose and timeline for how funds will be allocated and used?
- Who manages fund withdrawals, and is there a clear, secure process ensuring donations reach their intended recipients?
- Are close contacts such as family or friends publicly endorsing the campaign?
If any answers feel unclear or incomplete, request clarification immediately. Lack of transparency or evasive replies are strong warning signs.
Key Warning Signals of Fraudulent Fundraisers
Before donating, be cautious if you notice:
- The fundraiser page contains misleading or blatantly false claims.
- Fund usage deviates from the stated goal within an unreasonable timeframe.
- The organizer impersonates someone else or copies another person's story.
- Stories seem overly perfect or employ intense emotional manipulation.
Encountering multiple red flags? Report the fundraiser and refrain from contributing.
How to Safely Vet Charities Beyond Crowdfunds
Even longstanding charities can have questionable practices. Look for:
- Transparent program details, comprehensive financial breakdowns, and readily available annual reports.
- Clear disclosure of how donations are split between programs and operational costs.
- Search results free from terms like "fraud," "scam," or "complaints" tied to the charity's name.
Absence of details or negative feedback should raise suspicion and prompt further investigation.
Common Tricks Used by Charity Scammers
Stay alert to these tactics:
- Insisting that donations be made via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking https security (the "s" indicates encrypted data transmission).
- Urgent, high-pressure appeals to give immediately—a common strategy to prevent clear thinking.
- Claims you've already pledged or donated without your recollection—always verify before paying.
Remember, even professional-looking websites and heartfelt headlines can mask deceit.
Why Protecting Your Brand Matters
Charitable giving—whether public or private—reflects directly on your business reputation. An inadvertent donation to a scam or employee donations linked to your company can tarnish your brand.
Moreover, many fraud methods seen in charity scams—like impersonation, fake websites, and urgency—are also used to target businesses through phishing, invoice fraud, or wire transfer scams. Helping your team detect fraudulent fundraisers equips them to recognize these threats across multiple contexts.
Practical Steps to Safeguard Your Business and Reputation
Follow these guidelines to make your donations secure and effective:
- Establish a Donation Policy: Define approved donation channels and establish authorization limits.
- Train Employees: Educate your team on how to identify fake fundraisers and verify requests before donating under your company's name.
- Use Reliable Channels: Make donations directly via official charity websites instead of unknown links from emails or social media.
- Maintain Transparency: If your business publicly shares its donations, verify the legitimacy of charities you endorse.
- Monitor Donations: After donating, track whether funds are utilized as promised; many charities publish impact reports for public review.
Celebrate the Holidays with Generosity—Not Risk
The holiday season is perfect for giving back, not for suffering regrets. By implementing wise checks and policies, you safeguard both your resources and your reputation.
Want to empower your team with the skills to spot scams—be it fake fundraisers, phishing emails, or fraudulent payment requests?
Call us at 978-664-1680 or click here to schedule your free 15-Minute Discovery Call today.
Because the greatest gift you can give to your business and community is unshakable trust.
