November 17, 2025
Scammers frequently exploit moments of generosity, but the holiday season, marked by increased giving and heightened emotions, offers them prime opportunities.
Consider the example from a few years ago: authorities dismantled an extensive telefunding scam after uncovering over 1.3 billion fraudulent donation calls, which amassed more than $110 million from trusting donors. (Federal Trade Commission)
Additionally, researchers at Cornell University identified over 800 social media accounts running donation scams on platforms such as Facebook, X, and Instagram, directing victims to fake fundraising campaigns.
For small businesses, one wrong move in charitable giving can cost more than money—it can tarnish your brand, harm your reputation, and break the trust of clients, partners, and your community.
Learn how to carefully assess fundraisers, recognize danger signs, and safeguard your business's goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before You Contribute
A credible fundraiser will provide clear answers to these key questions:
- Who is organizing the fundraiser, and what is their relationship to the beneficiary?
- How exactly will the donations be allocated, and what is the timeline for fund usage?
- Who manages the withdrawal of funds, and is the process transparent and direct?
- Does the beneficiary's close network (family, friends) publicly endorse the campaign?
If any details are unclear or absent, request clarification immediately—silence or avoidance is a serious warning.
Common Red Flags of Fraudulent Fundraisers
Be cautious if you encounter any of these signs:
- Deceptive or blatantly false information on the fundraiser's page.
- Funds are not used within a reasonable timeframe or for their stated purpose.
- Impersonation of individuals or plagiarism of other people's stories.
- Stories that seem overly perfect or emotionally manipulative.
If several warning signs appear, avoid donating and report the fundraiser immediately.
How to Vet Charities Beyond Crowdfunding
Even well-known charities can display questionable behavior. Be sure to check for:
- Clear descriptions of programs, financial transparency, and access to annual reports.
- Detailed breakdowns showing the ratio of donations going to programs versus overhead.
- Search results that associate the charity's name with terms like "fraud," "scam," or "complaints".
Insufficient information or negative feedback is a strong signal to proceed with caution.
Watch Out for Common Charitable Scam Tactics
Be wary of these red flags:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—genuine charities accept credit cards or checks.
- Websites lacking https in the URL, indicating insecure data transmission.
- Pressure tactics urging you to donate immediately to prevent you from assessing the situation.
- Claims that you've already donated or committed without your recollection—always verify before paying.
Scammers are sophisticated; even sleek websites and professional-sounding messages might mask malicious intent.
Why Protecting Your Business Matters
Your business's charitable contributions, whether public or private, shape your brand's identity. Falling victim to a charity scam, or having an employee donate on behalf of the company without proper checks, can associate your brand with fraud.
Moreover, fraud tactics used in charity scams—such as urgency, impersonation, and fake websites—overlap with phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to identify fraudulent fundraisers equips them to detect a broad range of scams.
Effective Strategies to Safeguard Your Business and Reputation
Implement these measures to secure your charitable giving:
- Establish a Clear Donation Policy: Define donation criteria, preferred charities, and approval processes within your company.
- Educate Employees: Inform your team about fake fundraisers and the importance of verifying donation requests before contributing under your business name.
- Use Trusted Channels: Always donate through official charity websites, avoiding links from unsolicited emails or social media posts.
- Maintain Transparency: If your business announces public donations, verify the legitimacy of the supported charity.
- Conduct Ongoing Monitoring: Follow up to ensure funds are allocated as promised, referring to charity impact reports when available.
Keep Your Holidays Filled with Generosity—Not Risk
The holiday season is your chance to make a positive impact, not to face regrets. Smart policies and due diligence safeguard both your funds and your hard-earned reputation.
Want your team to confidently recognize scams—whether fake fundraisers, phishing attempts, or fraudulent payment requests?
Contact us at (619) 349-5850 or click here to book your free 15-Minute Discovery Call today.
Because the greatest gift you can give your business and community is unshakable trust.
