November 17, 2025
Scammers are always lurking around acts of kindness, but they ramp up their efforts during the holiday season when generosity is at its peak and emotions run strong.
In a striking example, a huge telefunding scam was dismantled after authorities uncovered that the fraudsters had made over 1.3 billion deceptive donation calls and swindled more than $110 million from well-meaning donors. (Federal Trade Commission)
Simultaneously, research from Cornell University revealed that on social media platforms alone, upwards of 800 accounts were running donation scams, directing victims towards bogus fundraisers on sites like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can do more than just cause financial loss — it can entangle your brand in fraud, tarnish your reputation, and undermine trust among your clients, partners, and local community.
Here's your guide to thoroughly vetting fundraisers, identifying warning signs, and safeguarding both your business and your goodwill this season.
Essential Steps to Vet a Fundraiser Before Donating
A reputable fundraiser should provide clear answers to these questions:
- Who is organizing the fundraiser, and what is their relationship to the beneficiary?
- What will the funds be used for specifically, and what is the expected timeline?
- Who manages the withdrawals? Is there a transparent process ensuring funds reach the intended recipient?
- Are close connections of the beneficiary (family, friends) publicly endorsing this campaign?
If any details are unclear or incomplete, seek clarification immediately. Avoid fundraisers that respond with silence or evasiveness — these are serious red flags.
Warning Signs That May Signal a Scam
Be cautious if you notice any of the following indicators:
- False or misleading information presented on the fundraiser's page
- Funds not being used promptly for the stated purpose within a reasonable timeframe
- Personation of others or reuse of someone else's story
- Overly polished or emotionally manipulative stories that seem too good to be true
If you encounter several of these red flags, report the fundraiser immediately and refrain from donating.
How to Vet Established Charities Beyond Crowdfunding
Even well-known charities may engage in questionable practices. Watch for these signs:
- Clear descriptions of programs, detailed financial reports, and annual impact statements
- Detailed breakdowns showing how much of each donation supports programs versus overhead costs
- Online searches revealing words like "fraud," "scam," or "complaints" associated with the charity's name
Any absence of transparency or negative feedback should trigger caution.
Common Tricks Used by Charity Scammers
Be alert for these tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks.
- Websites lacking HTTPS security (look for the "s" in the URL) indicating unsecured data transmission.
- Urgent appeals to donate immediately — pressure designed to bypass rational decision-making.
- Claims that you already pledged or donated without your recollection — always verify before proceeding.
Remember, scammers can craft professional-looking websites and persuasive headlines that mask malicious intent.
Why Protecting Your Business Matters
When your business donates — publicly or privately — that generosity becomes part of your brand's identity. Contributing to a scam, or having an employee donate under your company's name unintentionally, can drag your brand into fraudulent stories.
Even more concerning, the manipulative tactics used in charity scams — like urgency, impersonation, and fake websites — overlap with threats such as phishing, invoice fraud, and wire transfer scams targeting businesses. Equipping your team to recognize fake fundraisers also strengthens their ability to detect broader fraud attempts.
Strategic Steps to Safeguard Your Business and Generosity
Follow these best practices to ensure your donations are secure and well-directed:
- Establish a Clear Donation Policy: Define your company's criteria for donations and set approval thresholds.
- Raise Employee Awareness: Train your team to identify fraudulent fundraisers and remind them to verify causes before donating under your business name.
- Use Verified Channels: Make donations only through official charity websites, avoiding random links from emails or social media.
- Maintain Transparency: If your business publicizes donations, ensure you verify the legitimacy of the supported charities.
- Monitor Post-Donation: Follow up on contributions to confirm the funds are used appropriately, as many charities provide impact reports.
Keep Holidays Filled with Generosity, Not Risks
The holiday season is a perfect time to give back, not to face regret. Implementing smart safeguards ensures your generosity remains secure and your reputation intact.
Want your team equipped to spot scams — whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 801-997-8000 or click here to schedule your free 10-Minute Discovery Call today.
Because the greatest gift your business and community can receive is unshakable trust.
