November 17, 2025
Scammers are always lurking around acts of generosity, but they become especially aggressive during the holiday season when charitable giving peaks and emotions run strong.
Not long ago, authorities uncovered a massive telefunding scam involving 1.3 billion deceptive donation calls that defrauded generous donors out of more than $110 million (Federal Trade Commission).
Meanwhile, research from Cornell University revealed that over 800 social media accounts on platforms like Facebook, X, and Instagram were running donation scams, misleading people into fake fundraisers.
For small businesses, a single mistake in charitable donations can cause more than financial loss—it can associate your brand with fraud, damage your reputation, and break trust with customers, partners, and your community.
Here's your essential guide to properly vetting fundraisers, recognizing warning signs, and safeguarding your business and goodwill this holiday season.
How to Evaluate a Fundraiser Before You Donate
A trustworthy fundraiser should be able to provide clear answers to these questions:
- Who is behind the fundraiser, and what is their relationship to the beneficiary?
- Exactly how will the donations be used, and what is the timeline for spending?
- Who manages the funds, and is there a transparent process ensuring money reaches its intended purpose?
- Do close contacts of the recipient, like family and friends, openly back the campaign?
If any information is unclear or missing, ask for details. Silence or evasiveness is a major red flag.
Warning Signs That Could Indicate a Scam
Be cautious and investigate further if you notice:
- False or misleading details on the fundraiser's page
- Funds not being allocated to the declared cause within a reasonable period
- Impersonation of another individual or copying someone else's story
- Accounts with narratives that feel too perfect or heavily emotionally manipulative
When multiple red flags appear, report the fundraiser and avoid donating.
How to Vet Charities Beyond Crowdfunds
Even well-known charities can have questionable practices. Watch for:
- Clearly detailed program descriptions, financial reports, and annual filings
- Information about the percentage of donations that directly supports programs versus overhead
- Search results showing the charity's name linked with terms like "fraud," "scam," or "complaints"
Limited transparency or negative feedback should raise your concerns.
Common Tricks Used by Charity Scammers
Be alert for these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency; reputable charities typically accept credit cards or checks.
- Fundraiser websites lacking https encryption (missing the "s"), signaling insecure data transfer.
- Urgent appeals demanding immediate donations, designed to prevent rational decision-making.
- False claims that you have already pledged or donated, which should always be verified before sending money.
Scammers often use professionally designed sites and convincing headlines to disguise their malicious intentions.
Why Protecting Your Business Matters
Your business's charitable contributions—whether public or private—reflect on your brand. Falling victim to a scam or having an employee donate through your company name without proper vetting can entangle your business in fraud cases.
Moreover, the tactics behind charity scams—urgency, impersonation, fake websites—also mirror those used in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your staff to identify fake fundraisers equips them to recognize a wide array of fraud.
Practical Steps to Safeguard Your Business and Reputation
Implement these measures to ensure your donations are secure and well-managed:
- Establish a Donation Policy: Define where and how your company gives, with clear approval processes.
- Raise Employee Awareness: Train your team to verify fundraisers before donating in your company's name.
- Use Reliable Channels: Make donations directly through charity websites, avoiding random email or social media links.
- Maintain Transparency: If you publicize your giving, verify the legitimacy of the supported charities.
- Monitor Donations: Follow up to ensure funds are spent as promised, since many charities publish impact reports.
Celebrate a Safe, Generous Holiday Season
The holidays offer a wonderful opportunity to give back without regret. Smart policies and diligence protect both your financial resources and your hard-earned reputation.
Looking to empower your team with skills to detect scams—from bogus fundraisers to phishing emails and fake payment demands?
Contact us at 952-941-7333 or click here to schedule your free Consult today.
Because the greatest gift you can offer your business and community is unshakable trust.
