November 17, 2025
Scammers are always lurking around acts of generosity, but during the holiday season—when giving peaks and emotions are heightened—they become especially aggressive.
For example, a major telefunding scam was uncovered a few years ago, revealing the criminals made an astonishing 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors, according to the Federal Trade Commission.
Simultaneously, research from Cornell University uncovered over 800 social media accounts running fraudulent donation campaigns, duping victims on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable donations can cost more than money—it can link your brand to fraud, tarnishing your reputation and undermining trust among customers, partners, and the broader community.
Here's your essential guide on how to thoroughly vet fundraisers, recognize warning signs, and protect your business's reputation and goodwill throughout the season.
Essential Steps To Vet A Fundraiser Before Donating
A legitimate fundraising campaign should clearly provide answers to these questions:
- Who is organizing the fundraiser, and how are they connected to the cause or beneficiary?
- How will the donations be specifically used, and what is the expected timeline for fund deployment?
- Who manages the withdrawal of funds, and is there a transparent, traceable process to ensure the money reaches its intended target?
- Have family, friends, or close associates of the beneficiary publicly endorsed or supported this fundraiser?
If any answers are unclear or omitted, request further details immediately—silence or vagueness should raise concern.
Warning Signs Indicating Potential Charity Scams
Be cautious and investigate thoroughly if you encounter:
- False or misleading statements on the fundraiser's page.
- Delayed or misappropriation of funds from the stated cause.
- Impersonation of individuals or recycling of other people's stories.
- Stories that appear overly perfect or exploit emotional manipulation techniques.
If multiple red flags arise, report the fundraiser immediately and avoid donating.
How To Properly Vet Charities Beyond Crowdfunding Sites
Even established charities might engage in questionable practices. Look out for:
- Clear and detailed program descriptions, financial summaries, and annual reports.
- Transparent breakdown of the portion of donations going to programs versus overhead costs.
- Search results including terms like "fraud," "scam," or "complaints" linked to the charity's name.
Limited transparency or negative feedback warrants heightened scrutiny.
Common Scammer Tactics To Watch For
Be alert for these signs:
- Requests for donations through gift cards, wire transfers, or cryptocurrency—trusted charities usually accept credit cards or checks.
- Fundraising websites lacking https, indicating insecure data transmission.
- High-pressure tactics pushing you to donate immediately to bypass careful consideration.
- Claims suggesting you have already pledged or donated when you do not recall doing so—always verify before proceeding.
Remember, scam artists can craft convincing websites and persuasive narratives to disguise their malicious intent.
Why Charitable Giving Matters To Your Business Reputation
When your business donates—whether publicly or behind the scenes—that generosity becomes a reflection of your brand identity. Falling victim to donation scams, or even employees giving in your company's name without verification, risks dragging your reputation into fraudulent episodes.
Moreover, the fraud tactics common in charity scams, such as urgency, impersonation, and fake websites, overlap with other cyber threats like phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to detect a wide range of fraudulent scams.
Proven Strategies To Safeguard Your Business & Reputation
Implement these best practices to ensure your donations are both impactful and secure:
- Establish A Formal Donation Policy: Clearly define your company's gifting criteria, preferred channels, and set approval limits.
- Train Your Employees: Educate staff about recognizing fraudulent fundraisers and encourage them to verify all donations made in the company's name.
- Use Verified Donation Channels: Always give through official charity websites rather than clicking links found in unsolicited emails or social media.
- Promote Transparency: If your business publicly announces donations, double-check the legitimacy of the charities you support.
- Monitor Fund Usage: After donating, review impact reports or updates to confirm funds are used as intended.
Keep Your Holidays Safe, Generous, and Fraud-Free
The holiday season is a meaningful opportunity to give back without fearing regret. Applying smart safeguards ensures your generosity benefits genuine causes and protects your brand's integrity.
Looking to empower your team with the skills to detect scams—whether a fake fundraiser, phishing attempt, or fraudulent payment request?
Contact us at (951) 405-6873 or click here to schedule your complimentary 15-Minute Discovery Call today.
Because the most valuable gift for your business and community is trust that lasts.
