November 17, 2025
Scammers are always on the lookout to exploit generosity, but during the holiday season—when giving is at its peak and emotions run strong—they become particularly aggressive.
A few years back, authorities dismantled a massive telefunding scam after uncovering that the fraudsters had executed 1.3 billion deceptive donation calls, pocketing more than $110 million from unsuspecting donors, according to the Federal Trade Commission.
Meanwhile, researchers at Cornell University revealed that over 800 social media accounts were running donation scams, directing victims toward fake fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong move in charitable giving can mean much more than financial loss—it can associate your brand with fraud, harm your reputation, and undermine trust among clients, partners, and your community.
Here's a comprehensive guide on how to properly vet fundraisers, recognize warning signs, and safeguard your business's goodwill this season.
How To Properly Evaluate A Fundraiser Before Donating
A trustworthy fundraiser should clearly answer these questions:
- Who is organizing the fundraiser, and what is their relationship to the beneficiary?
- How will the donated funds be allocated, and what is the expected timeline?
- Who manages the withdrawal of funds? Is there a transparent process ensuring donations reach their intended cause?
- Are the beneficiary's close contacts (family or friends) publicly endorsing the campaign?
If any details seem unclear or absent, ask for clarification immediately. Evasive or silent responses are major red flags.
Warning Signs That Indicate Possible Scams
Be cautious and investigate further if you notice any of these indicators:
- False or misleading information on the fundraiser's page.
- Funds are not used for the stated purpose within a reasonable period.
- Impersonation of another individual or copying someone else's story.
- Stories that feel too perfect or rely heavily on emotional manipulation.
When multiple red flags appear, report the fundraiser immediately and refrain from donating.
How To Vet Charitable Organizations (Beyond Crowdfunding)
Even well-known charities can engage in questionable practices. Look out for:
- Clear program descriptions, detailed financial breakdowns, and accessible annual reports.
- Disclosure of how much of each donation goes directly to programs versus administrative costs.
- Online searches of the charity name revealing terms like "fraud," "scam," or "complaints."
Lack of transparency or negative feedback should raise caution.
Common Scamming Techniques Used by Charity Fraudsters
Watch for these suspicious tactics:
- Requests for donations through gift cards, wire transfers, or cryptocurrency—note that legitimate charities usually accept credit cards or checks.
- Websites without https security (look for the "s" in the URL), indicating unsecured data.
- High-pressure tactics urging you to donate immediately, aiming to bypass careful consideration.
- Claims that you've already pledged or donated when you don't recall doing so—always verify before contributing.
Remember, even sophisticated websites and convincing messaging can disguise malicious intent.
Why Charitable Giving Matters for Your Business
When your company donates—whether publicly or privately—those acts of generosity become part of your brand identity. A donation that inadvertently supports a scam, or an employee giving under your company's name without proper verification, can associate your brand with fraudulent activity.
Additionally, fraudsters employ many of the same tactics used in charity scams—urgency, impersonation, fake websites—to target businesses through phishing, invoice fraud, and wire transfer scams. Teaching your staff to identify fake fundraisers also equips them to recognize broader fraud attempts.
Strategies to Safeguard Your Business and Goodwill
Adopt the following measures to protect your contributions and reputation:
- Establish A Donation Policy: Clearly define donation channels, approval processes, and spending limits within your organization.
- Promote Employee Awareness: Train your team to recognize fake fundraisers and verify all donation requests made in your company's name.
- Utilize Verified Channels: Always donate directly through official charity websites rather than random email or social media links.
- Ensure Transparency: If your business announces public donations, confirm the legitimacy and reputation of the supported charities.
- Monitor Impact: After donating, track how funds are utilized; many charities provide reports on their outcomes and impact.
Make This Holiday Season About Generosity, Not Risk
The holidays offer a perfect chance to give back without regrets. Implementing smart checks and policies ensures your contributions—and your reputation—remain protected.
Ready to empower your team to identify scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at (858) 538-4729 or click here to book your free Consultation today.
Because the greatest gift you can offer your business and community is unshakable trust.
