November 17, 2025
Scammers are always lurking around acts of kindness, but they strike hardest during the holiday season when generosity spikes and emotions are heightened.
Consider this: a major telefunding scam was uncovered a few years back, revealing that the criminals made an astonishing 1.3 billion fraudulent donation calls and swindled more than $110 million from unsuspecting donors, according to the Federal Trade Commission.
Similarly, Cornell University research uncovered over 800 social media accounts running donation scams that led donors to fake fundraisers on Facebook, X, Instagram, and similar platforms.
For small businesses, a single mistake in charitable contributions can cost more than just money—it risks associating your company name with fraud, harming your reputation and undermining the trust of clients, partners, and your community.
Here's a comprehensive guide on how to thoroughly investigate fundraisers, identify warning signs, and safeguard your business's integrity and generosity this holiday season.
Steps to Verify a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these key questions:
- Who is behind the fundraiser, and what is their connection to the beneficiary?
- How will the collected funds be allocated and over what timeframe?
- Who manages fund withdrawals, and is there a transparent process ensuring the money reaches the intended recipients?
- Do the recipient's close contacts, such as family or friends, publicly endorse the campaign?
If any information is unclear or missing, ask for clarification immediately. Avoid fundraisers that respond with silence or vague answers.
Common Red Flags Indicating Potential Scams
Be cautious and investigate further if you notice:
- False or deceptive content on the fundraiser's page.
- Funds that are not used for the stated cause within a reasonable period.
- Impersonation of individuals or unauthorized use of others' stories.
- Fundraising narratives that feel overly perfect or emotionally manipulative.
If you detect multiple warning signals, report the fundraiser and refrain from donating.
How to Vet Charities Beyond Crowdfunding
Even recognized charities can sometimes engage in questionable practices. Look for:
- Detailed program explanations, transparent financials, and accessible annual reports.
- Clear breakdowns showing how much of your donation goes directly to programs versus overhead.
- Search results showing the charity's name alongside terms like "fraud," "scam," or "complaints."
Lack of transparency or negative feedback should prompt skepticism.
Typical Strategies Used by Charity Scammers
Be vigilant for the following tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrencies—legitimate charities usually accept credit cards or checks.
- Websites without secure https protocols (look for the "s" indicating a secure connection).
- High-pressure pleas urging you to donate immediately to avoid thinking things through.
- Claims suggesting you've already pledged or donated, even if you don't remember doing so—always confirm before sending money.
Remember, scammers often mask their malicious intent behind polished websites and persuasive headlines.
Why Protecting Your Business Matters
Your company's charitable actions, whether public or private, shape its brand image. Donating to a fraudulent cause—or having an employee contribute under your business name—can entangle your brand in scandal.
Moreover, the same tricks used in charity scams—urgency, impersonation, fake websites—are also tactics scammers use to target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to recognize broader fraudulent schemes.
Essential Steps to Safeguard Your Business and Goodwill
Implement these measures for safe, impactful giving:
- Establish a Corporate Donation Policy: Outline where and how donations are approved and set clear authorization limits.
- Educate Employees: Train your team to recognize fraudulent fundraisers and confirm legitimacy before donating using your company's name.
- Use Official and Trusted Channels: Donate directly through verified charity websites instead of clicking random links in emails or social media.
- Maintain Transparency: If your business publicly supports causes, ensure the charities you back have credible reputations.
- Monitor Post-Donation Impact: Follow up to verify funds are being utilized as promised, since many charities share annual impact reports.
Enjoy a Generous and Secure Holiday Season
The holidays offer a wonderful opportunity to give back without regret. Implementing smart screening and giving policies safeguards your finances and your business's hard-earned reputation.
Want your team equipped to identify scams—whether they're fake fundraisers, phishing attempts, or fraudulent payment requests?
Contact us at 609-676-3597 or click here to schedule your complimentary 15-Minute Discovery Call today.
Because building trust is the most valuable gift you can give your business and community.
