November 17, 2025
Scammers prey on generosity year-round, but during the holiday season, when giving reaches its peak and emotions soar, their attacks intensify.
Not long ago, authorities dismantled a massive telefunding fraud operation that had made an astounding 1.3 billion fraudulent donation calls and swindled over $110 million from well-meaning donors. (Federal Trade Commission)
Simultaneously, Cornell University researchers uncovered more than 800 social media accounts running donation scams, directing victims toward fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can cost more than money—it can link your brand's name to fraud, damaging your reputation and undermining the trust of clients, partners, and your community.
Here's your essential guide to thoroughly vetting fundraisers, recognizing warning signs, and safeguarding your company's goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before You Donate
Any trustworthy fundraiser should provide clear answers to these critical questions:
- Who is behind this fundraiser, and what is their relationship to the beneficiary?
- How specifically will the donations be utilized, and what is the anticipated timeline?
- Who manages the disbursement of funds? Is there transparency ensuring donations reach the intended recipients?
- Are close contacts of the recipient—family or friends—publicly endorsing or involved in the campaign?
If any details are unclear or omitted, request clarification immediately. Evasive or no response is a critical red flag.
Key Warning Signs of Fundraising Scams
Be cautious if you notice any of the following:
- False or misleading information presented on the fundraiser's page.
- Funds are not used for the stated cause within a reasonable period.
- Someone impersonating another person or recycling another's fundraising story.
- Stories that feel overly idealized or manipulate emotion to an extreme.
If multiple red flags appear, report the fundraiser and refrain from donating.
Thoroughly Vetting Established Charities
Even well-known charities can exhibit questionable practices. Watch for these indicators:
- Clear and transparent descriptions of programs, detailed financial reports, and published annual reports.
- Information showing how donations are divided between program services and administrative costs.
- Online presence flagged with terms like "fraud," "scam," or "complaints" associated with the charity's name.
Insufficient details or negative feedback are strong reasons to proceed with caution.
Common Manipulation Tactics Used by Charity Scammers
Be vigilant for tactics such as:
- Requests for payment via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking secure https protocols—absence of "s" means your data isn't protected.
- Urgent pleas to donate immediately, designed to rush decisions and bypass skepticism.
- Claims that you've already pledged or donated when you haven't—always verify before transferring money.
Scammers are cunning; sophisticated websites and convincing wording can conceal malicious intent.
Why Protecting Your Business From Charity Scams Matters
Your company's charitable contributions—whether public or private—reflect on your brand. Donating to a scam or having an employee give under your business name can entangle your reputation in fraud.
More concerning, fraudsters employ similar tactics in charity scams—urgency, impersonation, fake websites—that also target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to recognize fake fundraisers equips them to identify broader fraudulent schemes.
Proven Strategies to Safeguard Your Business and Its Reputation
Implement these steps to ensure your charitable giving remains secure and effective:
- Establish a Donation Policy: Clearly define donation guidelines, including approval limits and designated giving areas.
- Educate Your Team: Train employees to recognize fake fundraisers and verify legitimacy before donating on behalf of your company.
- Donate Through Verified Channels: Use official charity websites instead of random email or social media links.
- Maintain Transparency: When publicizing donations, confirm the authenticity of the supported charities.
- Monitor Donations Post-Gift: Follow up to ensure contributions are used as intended; many charities publish impact reports for this purpose.
Keep Your Holiday Giving Generous and Secure
The holiday season should be about generosity, not regret. Establish smart checks and clear policies to protect both your funds and your business's hard-earned reputation.
Need your team to learn how to spot scams—including fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 888-624-7383 or click here to book your complimentary 15-Minute Discovery Call today.
Because the most valuable gift your business and community can receive is trust that stands unshakable.
