November 17, 2025
Scammers often prey on generosity year-round, but during the holiday season—when giving intensifies and emotions run high—they become especially aggressive.
A striking example: authorities recently dismantled a huge telefunding scam after uncovering 1.3 billion fraudulent donation calls and the illicit collection of more than $110 million from unsuspecting contributors. (Federal Trade Commission)
Additionally, research from Cornell University revealed that on social media alone, over 800 accounts operated fake donation scams, misdirecting donors on platforms like Facebook, X, and Instagram.
For small businesses, a single misjudgment in charitable giving can cost much more than money—it can link your brand to fraudulent activity, damaging your reputation and weakening trust among clients, partners, and your wider community.
Here's your essential guide to screening fundraisers, recognizing red flags, and safeguarding your business—and your goodwill—this season.
How to Thoroughly Vet a Fundraiser Before Donating
Any credible fundraiser should provide clear answers to these key questions:
- Who is behind this initiative, and what relationship do they have with the beneficiary?
- How will the donations be allocated, and what is the expected timeframe for their use?
- Who manages the withdrawal of funds, and is there a transparent process ensuring money reaches its target?
- Are close associates of the beneficiary, such as family or friends, publicly endorsing the campaign?
If any of these details are unclear or missing, request further information. Avoid fundraisers that provide vague or evasive responses—these are important warning signs.
Watch Out for Scammer Warning Signs
Stop and examine any fundraiser that shows these red flags:
- False or misleading information on the fundraising page.
- Funds not channeled toward the promised purpose within a reasonable period.
- Impersonation of individuals or stories copied from others.
- Appealing stories that sound too perfect or overly emotional in manipulation.
If you notice several of these signs, report the fundraiser and refrain from donating.
Assessing Charities Beyond Crowdfunding Campaigns
Even reputable charities may sometimes exhibit questionable practices. Verify the following:
- Detailed program explanations, financial disclosures, and annual reports.
- Clear breakdowns showing the portion of donations directed to programs versus administrative costs.
- Search results including the charity's name alongside words like "fraud," "scam," or "complaints."
Lack of transparency or negative feedback should raise concerns.
Common Techniques Used by Charity Scammers
Be vigilant against these tactics:
- Requests to give via gift cards, wire transfers, or cryptocurrency—remember, legitimate charities typically accept credit cards or checks.
- Websites lacking HTTPS (look for the "s")—this indicates insecure data transfer.
- High-pressure tactics urging you to donate immediately to prevent you from carefully considering.
- Claims that you have already made a donation or pledge which you don't recall—always verify before sending money.
Scammers deploy sophisticated methods. Even professional-looking websites or compelling headlines may conceal malicious intent.
Why Protecting Your Business Matters
When your business contributes to charity—whether openly or behind the scenes—those acts become part of your corporate identity. Falling victim to a scam, or having an employee give under your company name to a fraudulent cause, can irreparably harm your brand's image.
Moreover, the same manipulative tactics used in charity scams—urgency, impersonation, fake websites—overlap with the scams targeting businesses, such as phishing, invoice fraud, and wire transfer fraud. Teaching your team to identify fake fundraisers equips them to recognize fraud attempts across all fronts.
Steps to Safeguard Your Business and Its Generosity
Follow these best practices to ensure your charitable giving is both secure and strategic:
- Create a Clear Donation Policy: Establish guidelines for where and how your company donates, including approval thresholds.
- Educate Employees: Train staff to detect fake fundraisers, encouraging verification before donating in your company's name.
- Donate Through Verified Channels: Use official charity websites rather than clicking random links in emails or social media.
- Maintain Transparency: If your business publicizes donations, thoroughly verify the charities you support.
- Monitor Post-Donation Use: Follow up to confirm funds are applied as promised—many charities provide impact reports.
Celebrate a Generous, Yet Safe Holiday Season
The holidays should be about heartfelt giving—not regret or loss. By implementing smart checks and policies, you protect not only your funds but also your valued reputation.
Ready to empower your team to identify scams—be it bogus fundraisers, phishing messages, or fraudulent payment requests?
Contact us at 435-313-8132 or click here to schedule your complimentary 10-Minute Conversation today.
Because the greatest gift you can offer your business—and your community—is unshakable trust.
