November 17, 2025
Scammers are always lurking around acts of generosity, but during the holiday season—with increased giving and heightened emotions—they seize the opportunity to exploit kindness.
Consider a large-scale telefunding scheme uncovered a few years ago, which involved 1.3 billion deceptive donation calls and defrauded innocent donors of more than $110 million, according to the Federal Trade Commission.
Furthermore, research by Cornell University revealed that over 800 fraudulent donation accounts operate across social media platforms like Facebook, X, and Instagram, misleading people into contributing to fake fundraisers.
For a small business, one wrong step in charitable giving can mean more than financial loss—it can unfairly link your business's name to fraud, tarnishing your reputation and undermining trust among clients, partners, and the wider community.
Here's how to thoroughly evaluate fundraisers, identify warning signs, and safeguard your business's generosity this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these questions:
- Who is behind the fundraiser, and what is their relationship to the cause or recipient?
- How will the donated funds be allocated, and within what timeframe?
- Who manages fund withdrawals, and is there a secure process to ensure donations reach their intended destination?
- Do close connections such as family or friends publicly endorse the campaign?
If any of these details are unclear or missing, seek clarification. Non-responsiveness or vague answers should raise concern.
Warning Signs That Indicate Potential Scams
Be cautious if you encounter:
- False or misleading claims on the fundraiser's page.
- Funds not being used promptly or as promised.
- Impersonation or replication of another person's story.
- Stories that seem overly perfect or heavily tug at emotions to manipulate.
Encountering multiple red flags? Report the fundraiser immediately and refrain from donating.
How to Vet Established Charities
Even well-known charities can occasionally display questionable activities. Here's what to double-check:
- Availability of transparent program descriptions, detailed financial statements, and annual impact reports.
- Clear breakdown of the percentage of donations allocated to programs versus administrative costs.
- Search results listing the charity's name alongside terms like "fraud," "scam," or "complaints."
A shortage of information or negative feedback should prompt heightened caution.
Common Tactics Employed by Charity Scammers
Watch for these deceptive methods:
- Requests for contributions via gift cards, wire transfers, or cryptocurrency—genuine charities usually accept credit cards or checks.
- Websites lacking https security (check for the "s" in the URL), indicating vulnerable data transmission.
- Urgent pressure to donate immediately, designed to bypass thoughtful decision-making.
- Claims that you have already pledged or donated without your recollection—always verify before proceeding.
Even professional-looking websites and well-crafted messages can hide malicious scams.
Why Protecting Your Business Matters
Corporate generosity—whether public or private—becomes a reflection of your brand. A donation made to a fraudulent cause, or an employee contributing under your company's name without oversight, can inadvertently associate your business with fraud.
Moreover, the phishing tactics seen in charity scams—urgency, identity falsification, and fake websites—also target businesses in the form of phishing, fake invoices, and wire transfer fraud. Training your team to recognize fraudulent fundraisers equips them to detect these threats across the board.
Practical Steps to Safeguard Your Business and Its Goodwill
Implement these measures to ensure your donations are both secure and impactful:
- Establish a Clear Donation Policy: Define company donation guidelines and approval processes to oversee contributions.
- Educate Your Employees: Train your team to recognize fake fundraisers and always verify before donating under the company's name.
- Stick to Trusted Donation Channels: Use official charity websites rather than clicking unknown links from emails or social media.
- Maintain Transparency: When publicizing donations, confirm the legitimacy of the supported charities.
- Monitor Outcomes: Follow up to ensure donations are being utilized as promised, many charities publish impact updates.
Ensure Holidays Remain a Time of Generosity, Not Risk
The holiday season offers a beautiful opportunity to give back wisely. By implementing smart safeguards and policies, you protect your funds and reputation equally.
Want your team trained to detect scams—from fake fundraisers to phishing attempts and fraudulent payment requests?
Contact us at (949) 537-2909 or click here to book your free 10-Minute Discovery Call today.
Because the greatest gift you can give your business and community is unshakable trust.
