November 17, 2025
Scammers prey on generosity year-round, but during the holiday season—when giving peaks and emotions are heightened—they seize the opportunity to exploit well-meaning donors.
Consider a massive telefunding scam shut down a few years ago, where perpetrators made 1.3 billion deceptive donation calls and swindled over $110 million from unsuspecting contributors, according to the Federal Trade Commission.
Meanwhile, Cornell University researchers uncovered more than 800 social media accounts running fraudulent donation campaigns on platforms like Facebook, X, and Instagram, directing victims to fake fundraisers.
For small businesses, a single mistake in charitable giving can lead not only to financial loss but also to damaging associations with fraud—harm that can erode your reputation and break trust with customers, partners, and your local community.
Here's a comprehensive guide to effectively vet fundraisers, identify warning signs, and safeguard your company's goodwill this holiday season.
Steps to Verify a Fundraiser Before You Donate
Authentic fundraisers will provide clear answers to these essential questions:
- Who is organizing the fundraiser, and what is their relationship to the cause or recipient?
- How will the donations be utilized, and what is the expected timeframe?
- Who manages the withdrawal process, and is the flow of funds transparent?
- Are close associates of the recipient—family or friends—publicly endorsing the campaign?
If any answers seem unclear or missing, request clarification immediately. Evasive responses or silence should raise suspicion.
Common Red Flags Indicating Potential Scams
When you notice these signs, take a moment to investigate before donating:
- False or misleading information presented on the fundraiser page.
- Donations not being allocated to the stated cause within a reasonable period.
- Use of impersonation or stolen personal stories.
- Stories that feel too perfect or heavily rely on emotional manipulation.
Encountering multiple warning signs? It's best to report the fundraiser and refrain from donating.
How to Vet Charities (Beyond Crowdfunding)
Even reputable charities may have questionable practices. Ensure you look for:
- Detailed program descriptions, clear financial breakdowns, and available annual reports.
- Transparent information about the percentage of donations going directly to programs versus overhead costs.
- Presence of negative keywords like "fraud," "scam," or "complaints" when searching the charity's name.
Insufficient details or negative reviews should prompt caution before contributing.
Typical Tactics Used by Charity Scammers
Be vigilant for these manipulative tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrencies—legitimate charities typically accept credit cards or checks.
- Fundraiser websites lacking https in the URL, indicating insecure data transmission.
- Pressure to contribute immediately, designed to prevent you from thoroughly evaluating the opportunity.
- Claims that you already pledged or donated, prompting you to pay again—always verify before proceeding.
Remember, even professionally designed websites and well-crafted appeals can conceal fraudulent intents.
Why This Matters for Your Business
Your business's charitable contributions—whether public or private—reflect directly on your brand. Donating to a scam, or even employees giving under your company's name, could entangle your brand in fraudulent activities.
Moreover, the same tactics used in charity scams—urgency, impersonation, and fake websites—are common in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to recognize fake fundraisers equips them to spot broader fraudulent schemes.
Strategies to Protect Your Business and Its Goodwill
Adopt these proactive measures to ensure your donations are secure and impactful:
- Establish a Company Donation Policy: Clearly define donation procedures and approval requirements within your business.
- Raise Employee Awareness: Train your team to identify fake fundraisers and verify all giving before using your company's name.
- Utilize Trusted Channels: Donate only through verified charity websites, avoiding random email or social media links.
- Maintain Transparency: When publicly announcing donations, confirm the credibility of the supported charity.
- Perform Ongoing Monitoring: Follow up to ensure funds are used as promised; many charities provide impact reports for transparency.
Keep Your Holiday Giving Generous and Secure
The holiday season offers a wonderful opportunity to give back, but it's critical to protect both your funds and reputation with smart safeguards and procedures.
Want to empower your team to confidently identify scams—be it fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 859-245-0582 or click here to schedule your free Discovery Call today.
Because the most valuable gift for your business and community is trust that cannot be compromised.
