November 17, 2025
Scammers consistently exploit generosity—not just during tough times, but especially during the holidays when giving spikes and emotions are heightened.
Consider this: a large-scale telefunding scam was dismantled after officials uncovered that the fraudsters made 1.3 billion deceptive donation calls, swindling more than $110 million from unsuspecting donors. (Federal Trade Commission)
At the same time, Cornell University researchers revealed over 800 social media accounts running donation scams, steering victims to fraudulent fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong charitable move risks more than financial loss—it can link your brand to fraud, damage your reputation, and diminish trust among clients, partners, and your community.
Learn how to thoroughly vet fundraisers, identify warning signs, and safeguard both your business and goodwill this holiday season.
How to Verify Fundraisers Before Donating
Legitimate fundraisers should provide clear answers to these key questions:
- Who is organizing this fundraiser, and what is their relationship to the beneficiary?
- How will the donated funds be allocated, and over what timeframe?
- Who manages fund withdrawals? Is there a documented process ensuring funds reach their intended recipients?
- Are close contacts of the recipient, such as family or friends, publicly endorsing the campaign?
If any information is unclear or missing, request further details. Silence or avoidance signals a potential scam.
Warning Signs That Often Indicate Scams
Pause and investigate if you notice:
- Deceptive or blatantly false content on the fundraiser page.
- Funds not being used for their stated purpose within a reasonable period.
- Impersonation of individuals or copying someone else's story.
- Stories that are overly perfect or use manipulative emotional appeals.
When multiple red flags surface, report the fundraiser and avoid donating.
How to Vet Established Charities
Even respected charities may engage in questionable practices. Watch for:
- Detailed program descriptions, transparent financial reports, and annual statements.
- Clear breakdowns of what percentage of donations directly support programs versus overhead.
- Search results associating the charity with terms like "fraud," "scam," or "complaints."
Lack of transparency or poor reviews should trigger caution.
Common Tactics Used by Charity Scammers
Be alert for:
- Requests for donations through gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites missing "https" in their URL, indicating insecure data transmission.
- Urgency tactics pushing for immediate donations—these prevent careful consideration.
- Claims you've previously pledged or donated without your recollection—always verify before giving.
Scammers are sophisticated: polished websites and professional messaging can mask malicious intent.
Why This Matters for Your Business
When your business donates—whether openly or behind the scenes—your generosity becomes part of your brand image. Falling victim to a scam or having an employee donate under your business name can entangle your brand in fraud controversies.
Worse, the fraud techniques used in charity scams—such as urgency, impersonation, and fake websites—also overlap with phishing, invoice fraud, and wire transfer scams aimed at businesses. Training your team to recognize fraudulent fundraisers strengthens their ability to spot wider scams.
Steps to Safeguard Your Business and Goodwill
Implement these practices to ensure your donations are secure and impactful:
- Establish a Donation Policy: Define approved causes and set authorization limits for donations.
- Educate Employees: Equip your team to identify fake fundraisers and encourage verification before donating under your business name.
- Use Verified Channels: Make donations directly on official charity websites rather than through unsolicited links.
- Ensure Transparency: When publicizing your donations, confirm the legitimacy of supported charities.
- Monitor Donations: Follow up to verify that contributions are used as intended; many charities provide impact reports.
Make Your Holidays Meaningful—Without Risk
The holiday season offers a special chance to give back, not a time to regret lost resources. Applying smart verification and policies protects both your funds and your reputation.
Want your team to be empowered to identify scams—whether it's a fake fundraiser, phishing email, or fraudulent payment request?
Contact us at 877-310-0123 or click here to schedule your free 15-Minute Discovery Call today.
Because the most valuable gift you can give your business and community is unwavering trust.
