November 17, 2025
Scammers are always on the lookout for generosity, but the holiday season—when giving spikes and emotions run high—is when they strike hardest.
A few years back, authorities dismantled a massive telefunding scam that made an astonishing 1.3 billion fraudulent donation calls and swindled over $110 million from well-meaning donors. (Federal Trade Commission)
Simultaneously, research from Cornell University uncovered that over 800 social media accounts were operating donation frauds on platforms like Facebook, X, and Instagram, enticing victims toward counterfeit fundraisers.
For small businesses, one wrong move in charitable giving can cost more than just money—it risks associating your brand with fraud, damaging your reputation and losing the trust of clients, partners, and your community.
Here's how to thoroughly evaluate fundraisers, identify warning signs, and safeguard your business and goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A genuine fundraiser should provide clear answers to these critical questions:
- Who is organizing this fundraiser, and how are they connected to the beneficiary?
- Precisely how will donations be used, and what is the expected timeline?
- Who manages the withdrawal of funds, and is there a transparent process ensuring money reaches its intended purpose?
- Do the recipient's close contacts (family, friends) publicly back this campaign?
If any information is vague or missing, request clarification immediately. Evasive or silent responses are a major red flag.
Key Red Flags That Indicate Potential Scams
Be cautious and investigate thoroughly if you notice:
- False or misleading details on the fundraiser's page
- Funds not being utilized for the declared cause within a reasonable time frame
- Impersonation of individuals or replication of someone else's story
- Stories that feel too perfect or designed to manipulate emotions
If you encounter several of these warning signs, report the fundraiser immediately and avoid donating.
How to Verify Charities Beyond Crowdfunding
Even well-known charities can harbor questionable practices. Watch for:
- Detailed program descriptions, transparent financial reports, and published annual reports
- Clear breakdown of donation allocation between programs and overhead costs
- Any online mentions linking the charity's name to "fraud," "scam," or "complaints"
If you find scant information or negative reviews, proceed with caution.
Common Tactics Used by Charity Scammers
Be vigilant for these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking https in their URL (indicating insecure data transmission).
- High-pressure appeals urging you to donate immediately, using urgency to cloud judgment.
- Claims that you have already pledged or donated without your recollection—always verify before giving.
Remember, scammers often disguise themselves behind professional websites and convincing narratives, hiding their malicious intent.
Why Protecting Your Business Matters
Your business's charitable giving—whether public or private—reflects directly on your brand. A donation tied to a scam or an employee's unauthorized giving under your business name can irreparably harm your brand's reputation.
Moreover, the same tactics used in charity fraud—urgency, impersonation, fake websites—are increasingly leveraged in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to identify fake fundraisers equips them to recognize a variety of fraudulent schemes.
Strategies to Safeguard Your Business and Its Generosity
Follow these best practices to ensure your donations are secure and meaningful:
- Develop a Clear Donation Policy: Outline how and where your company donates, establishing approval processes.
- Educate Employees: Inform your team about fake fundraisers and encourage verification before donating under the company name.
- Use Trusted Donation Channels: Always give via official charity websites, avoiding unknown links sent through emails or social media.
- Maintain Transparency: When publicly promoting donations, verify the legitimacy of the charities you endorse.
- Monitor Donations Continuously: Confirm that donated funds are utilized as promised; many charities publish impact or financial reports for public review.
Make This Holiday Season About Genuine Generosity, Not Risk
The holidays offer a perfect opportunity to give back—make sure your generosity doesn't become a source of regret. A few smart precautions and clear policies protect your funds and your hard-earned reputation.
Want your team trained to spot scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Reach out to us at 507-718-4288 or click here to schedule your free 15-Minute Call today.
Because the greatest gift you can give your business and community is unshakable trust.
