November 17, 2025
Scammers prey on goodwill year-round, but during the holidays—when generosity surges and emotions heighten—their attacks intensify dramatically.
In one infamous case, authorities dismantled a massive telefunding scam that made an astonishing 1.3 billion fraudulent donation calls, swindling over $110 million from trusting donors. (Source: Federal Trade Commission)
Similarly, Cornell University researchers uncovered more than 800 social media accounts orchestrating donation scams, steering victims toward counterfeit fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, one careless charitable contribution can lead not only to financial loss but also associate your brand with fraud, damaging your reputation and weakening trust among clients, partners, and your community.
Learn how to thoroughly vet fundraisers, recognize warning signs, and protect your business's goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will clearly answer the following questions:
- Who is organizing this campaign, and what is their relationship to the beneficiary?
- How will the raised funds be allocated, and what is the expected timeline for their use?
- Who manages the disbursement of funds, ensuring they reach the intended recipients securely?
- Are close contacts of the beneficiary, such as family or friends, publicly endorsing the fundraiser?
If any answers are unclear or unavailable, request further details. Unresponsiveness or vague replies should raise suspicion.
Warning Signs That May Indicate Fundraising Scams
Be cautious and investigate if you notice:
- False or misleading information on the fundraiser's page.
- Delays or misuse of funds not adhering to the stated purpose.
- Impersonation of individuals or plagiarized stories.
- Stories that appear overly perfect or manipulate emotions excessively.
Encountering multiple red flags warrants reporting the fundraiser and refraining from donating.
How to Evaluate Charities Beyond Crowdfunding Campaigns
Even reputable charities might have questionable practices. Watch for:
- Detailed program descriptions, financial transparency, and available annual reports.
- Clear breakdowns showing how donations are divided between programs and overhead costs.
- Search results linking the charity's name with terms like "fraud," "scam," or "complaints."
Insufficient details or negative feedback should prompt caution.
Common Tricks Used by Charity Scammers
Be vigilant about these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrencies—legitimate charities typically accept credit cards or checks.
- Websites lacking HTTPS security (look for the "s"), signaling unsafe data transmission.
- High-pressure demands to donate immediately, aiming to bypass rational decision-making.
- Claims that you've pledged or donated previously without your recollection—always verify before making payments.
Fraudsters can craft sophisticated websites and compelling headlines to mask their malicious intent.
Why Vigilance Matters for Your Business
Charitable giving, whether public or private, becomes a reflection of your business identity. A donation tied to a scam—or an employee donating in your company's name without proper checks—can drag your brand into a fraud scandal.
Moreover, fraudsters use similar deception tactics—urgency, impersonation, fake websites—across various scams targeting businesses, including phishing, invoice fraud, and wire transfer schemes. Training your team to recognize fake fundraisers equips them to identify broader fraud threats.
Steps to Safeguard Your Business and Its Generosity
Implement these practices to ensure your charitable efforts remain secure and impactful:
- Establish a Clear Donation Policy: Outline how and where donations are made, including approval limits.
- Educate Employees: Train your team to spot fraudulent fundraisers and verify requests before donating on behalf of the company.
- Donate Through Trusted Sources: Use official charity websites instead of random email links or social media solicitations.
- Maintain Transparency: If your business publicly donates, ensure the legitimacy of the charities you endorse.
- Monitor Donations: Follow up to confirm funds are used appropriately; many charities provide impact reports.
Keep Your Holidays Generous and Risk-Free
The holiday season is an opportunity to give back—not to face regret. Smart precautions and clear processes protect your money and your business's reputation.
Want your team to learn how to identify scams—be it fake fundraisers, phishing attempts, or fraudulent payment requests?
Contact us at 954-327-1001 or click here to schedule your free Consult today.
The greatest gift you can offer your business and community is unshakable trust.
