November 17, 2025
Scammers are always lurking around acts of kindness—even more so during the holiday season when generosity spikes and emotions soar.
Consider the scale of past fraud: a major telefunding scam was uncovered after authorities traced 1.3 billion deceptive calls soliciting donations, amassing over $110 million from well-meaning donors. (Federal Trade Commission)
Similarly, Cornell University researchers revealed that on social media platforms like Facebook, X, and Instagram, over 800 accounts operated fraudulent donation schemes by directing victims to bogus fundraisers.
For small businesses, one careless act in charitable giving can do more than drain resources — it can link your company to scams, harm your reputation, and erode trust among customers, partners, and your community.
Here's your essential guide to vetting fundraisers, recognizing warning signs, and safeguarding your business and goodwill this holiday season.
How To Thoroughly Vet A Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these questions:
- Who is behind the campaign, and what is their relationship to the beneficiary?
- How will the donated funds be allocated, and within what timeframe?
- Who oversees fund withdrawals? Is there a transparent process ensuring funds reach the cause?
- Are close contacts of the recipient (family or friends) publicly endorsing the fundraiser?
If any of these details are unclear or omitted, ask for clarification immediately. Avoid donating if responses are evasive or silent — these are warning signs.
Warning Signs That Signal Potential Scams
Be cautious and research further if you notice any of the following:
- False or misleading information presented on the fundraiser page.
- Funds not being utilized for the stated cause within a reasonable period.
- Impersonation of individuals or plagiarized stories.
- Stories that feel overly perfect or emotionally manipulative to provoke urgency.
When multiple red flags appear, report the fundraiser and refrain from donating.
How to Evaluate Established Charities, Not Just Crowdfunds
Even reputable charities can exhibit questionable practices. Watch out for:
- Clear, detailed program descriptions, financial transparency, and up-to-date annual reports.
- Disclosure of what percentage of donations supports programs versus administrative costs.
- Negative search results involving the charity name linked to terms like "fraud," "scam," or "complaints."
Absence of these details or troubling reviews should prompt caution before donating.
Common Tricks Used by Charity Scammers
Watch for these red flags indicating fraud attempts:
- Requests to pay via gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks only.
- Websites lacking "https" security (look for the "s" in the URL) indicating unsafe data transmission.
- High-pressure tactics urging you to donate immediately to prevent you from thinking critically.
- Claims that you already pledged or donated without your recollection — always verify before sending funds.
Keep in mind scammers are sophisticated; even professional-looking websites and convincing messages can conceal harmful intentions.
Why Protecting Your Business From Charity Scams Matters
Your business's charitable acts—whether public or private—shape its brand reputation. Contributing to scams, even unintentionally or through an employee's actions, can embroil your company in fraud-related controversies.
Additionally, the same deceitful tactics used in charity scams—such as urgency, impersonation, and fake websites—are common in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to recognize fake fundraisers enhances their ability to identify various fraudulent schemes.
How To Safeguard Your Business And Preserve Goodwill
Follow these key steps to ensure your charitable giving is both secure and effective:
- Set a Clear Donation Policy: Establish guidelines on how and where donations are made, including approval thresholds.
- Raise Employee Awareness: Train your team to recognize fake fundraisers and to verify authenticity before donating on your company's behalf.
- Use Verified Channels: Make donations only through official charity websites, avoiding random email or social media links.
- Maintain Transparency: If your company publicizes its charitable contributions, thoroughly verify the charities you support.
- Monitor Impact: Follow up to confirm that donations are used as intended, leveraging published impact reports when available.
Make Your Holidays Generous, Not Risky
The holiday season is a time to give back—not to risk regret. Implementing clear checks and policies protects not only your funds but also your company's reputation.
Want to empower your team to spot scams—from fake fundraisers to phishing attempts and fraudulent payment requests?
Call us at 920-818-0900 or click here to schedule your free 15-Minute Discovery Call today.
Because the greatest gift your business and community can receive is trust that stands unshakable.
