November 17, 2025
Scammers are always lurking around acts of generosity, and the holiday season - when giving spikes and emotions intensify - becomes their prime opportunity to strike.
Several years back, authorities dismantled a massive telefunding scam that involved an astonishing 1.3 billion fraudulent donation calls and siphoned off more than $110 million from well-meaning donors, according to the Federal Trade Commission.
Simultaneously, academic research from Cornell University revealed that on social media alone, over 800 accounts orchestrated donation scams, misleading victims with fake fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving doesn't just lead to financial loss—it risks entangling your brand in fraudulent activity, harming your reputation and undermining trust with clients, partners, and your community.
To protect your business and goodwill this season, here's a comprehensive guide to verifying fundraisers, detecting warning signs, and safeguarding your contributions.
How to Thoroughly Vet a Fundraiser Before Donating
A credible fundraiser should confidently provide answers to these critical questions:
- Who is behind the fundraiser, and what is their relationship to the recipient?
- Exactly how will the donated funds be allocated, and what is the timeline for their use?
- Who manages the withdrawal of funds, and is there a transparent process ensuring funds reach the intended beneficiaries?
- Are close contacts of the recipient, such as family or friends, publicly endorsing the campaign?
If any answers are unclear or missing, request clarification before proceeding, as evasive or silent responses are significant red flags.
Warning Signs That Indicate Potential Scams
Pause and investigate further if you encounter any of these indicators:
- Fraudulent or blatantly misleading information presented on the fundraiser page
- Funds not being utilized for the stated purpose within a reasonable timeframe
- Impersonation of individuals or plagiarism of someone else's story
- Overly perfect or emotionally manipulative narratives designed to pull at heartstrings
If several of these warning signs appear, it's best to report the fundraiser and avoid donating.
How to Verify Charities Beyond Crowdfunded Campaigns
Even well-known charities can engage in questionable practices. Keep an eye out for these traits:
- Transparent program details, financial disclosures, and access to annual reports
- Clear breakdown of what portion of your donation funds actual programs versus administrative overhead
- Charity names that appear in online searches alongside terms like "fraud," "scam," or "complaints"
Lack of information or negative feedback should prompt caution before supporting the organization.
Common Deceptive Tactics Used by Charity Scammers
Be vigilant for these tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate charities generally accept credit cards or checks.
- Websites lacking https security (look for the "s") indicating unsecure data handling.
- High-pressure tactics urging you to donate immediately, designed to bypass careful consideration.
- Claims that you have already pledged or donated without recollection—always verify before sending funds.
Remember, even professional-looking websites and persuasive headlines can mask fraudulent intent.
Why Protecting Your Business from Charity Scams Matters
Your business's charitable contributions, whether public or private, become tied to your brand identity. Supporting a fraudulent cause—or an employee donating under your business's name without proper checks—can entangle your brand in scandal.
Moreover, fraudsters use the same deceptive techniques seen in charity scams—urgency, impersonation, counterfeit websites—to target businesses through phishing, invoice fraud, and wire transfer schemes. Training your team to recognize fake fundraisers enhances their ability to identify broader fraud tactics.
Steps to Safeguard Your Business and Its Generosity
Follow these practical measures to ensure your donations are protected and impactful:
- Create a Formal Donation Policy: Establish clear guidelines on where and how your company donates, including approval limits.
- Educate Employees: Train your team to recognize fraudulent fundraisers and encourage verification prior to donating on behalf of the company.
- Donate Through Verified Channels: Always give via official charity websites, avoiding links sent via unsolicited emails or social media.
- Maintain Transparency: If your business publicizes donations, ensure you vet the charities you promote fully.
- Monitor Usage of Funds: After donating, track outcomes through impact reports that many charities provide.
Keep Your Holiday Giving Safe and Spirit-Filled
The holiday season offers a precious chance to make a positive impact. Use smart safeguards and policies to protect both your money and your hard-earned reputation.
Looking to empower your team with the skills to detect scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 703-879-2070 or click here to schedule your free 15-Minute Discovery Call today.
Because the most valuable gift for your business and community is trust that can never be taken away.
