November 17, 2025
Scammers are always lurking around charitable giving, especially during the holiday season when generosity surges and emotions run deep.
Not long ago, a large-scale telefunding scam was uncovered where fraudsters made an astounding 1.3 billion deceptive donation calls and swindled over $110 million from innocent donors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University revealed that over 800 social media accounts were operating donation scams, funneling victims to counterfeit fundraisers on sites like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving does more than just financial harm — it risks associating your brand with fraud, tarnishing your reputation and undermining trust among clients, partners, and your community.
Discover how to rigorously vet fundraisers, recognize warning signs, and protect your business's goodwill during this festive season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser should provide clear answers to these key questions:
- Who is leading the fundraiser, and what is their relationship to the cause?
- Exactly how will the donated funds be utilized, and within what timeframe?
- Who manages the withdrawal of funds? Is there a clear, secure process for the money to reach the intended recipient?
- Are close contacts such as family or friends publicly supporting this campaign?
If any answers are unclear or incomplete, demand clarification first. Silence or avoidance signals a serious red flag.
Spotting Red Flags That Often Indicate Scams
Be cautious if you notice any of the following warning signs:
- False or misleading claims presented on the fundraiser's page
- Funds not being used for the stated purpose within a reasonable timeframe
- Impersonation or plagiarized stories from others to elicit sympathy
- Appeals that feel overly crafted or emotionally manipulative
If you encounter multiple red flags, do not hesitate to report the fundraiser and refrain from donating.
How to Vet Established Charities Beyond Crowdfunding
Even well-known charities can sometimes operate questionably. Watch for:
- Transparent program descriptions, financial reports, and annual disclosures
- Clear details about the percentage of donations used for programs vs. overhead
- Negative search results linking the charity's name to terms like "fraud," "scam," or "complaints"
A lack of transparency or unfavorable reviews should trigger careful reconsideration.
Common Scammer Tactics in Charity Schemes
Stay alert to these deceitful strategies:
- Requests for donations via gift cards, wire transfers, or cryptocurrencies - legitimate charities typically accept credit cards or checks.
- Web pages lacking secure https protocols (look for "https") indicating unsafe data transmission.
- High-pressure tactics urging immediate donations to bypass thoughtful decision-making.
- Claims that you already pledged or donated without your recollection - always verify before giving.
Remember, scammers adapt quickly—sleek websites and convincing headlines can mask harmful intentions.
Why Protecting Your Business Matters
Your business's charitable contributions reflect directly on your brand identity. Donations to fraudulent schemes, or even employee giving under your company name, can associate your brand with deceit and damage your credibility.
Moreover, the same fraudulent tactics employed in charity scams—such as urgency, impersonation, and fake websites—also threaten businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers strengthens their ability to detect a wide range of fraud attempts.
How to Safeguard Your Business and Preserve Your Goodwill
Implement these proven strategies to ensure your charitable efforts remain secure and effective:
- Establish a Clear Donation Policy: Define your company's donation criteria and approval limits upfront.
- Raise Employee Awareness: Train staff to identify fake fundraisers and encourage thorough verification before donating through your business.
- Donate Through Trusted Channels: Always give via verified charity websites instead of unsolicited email links or social media posts.
- Maintain Transparency: If your business publicizes its charitable contributions, verify the legitimacy of the charities you support.
- Monitor Usage of Funds: After donating, check that the funds are used as promised by reviewing charity impact reports.
Make Your Holidays Generous and Risk-Free
The holiday season is a wonderful time to give back—with smart safeguards in place, you can protect your finances and your reputation from regret.
Want your team to master the skills to detect scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 303-415-2702 or click here to book your complimentary 15-Minute Discovery Call now.
Because the most valuable gift to your business and community is unshakable trust.
