November 17, 2025
Scammers are always lurking around acts of kindness, but they become especially aggressive during the holiday season, when generosity peaks and emotions are heightened.
In one major crackdown, authorities uncovered a telefunding fraud operation that made an astonishing 1.3 billion deceptive donation calls, deceiving donors into handing over more than $110 million. (Federal Trade Commission)
Additionally, Cornell University researchers revealed that over 800 fraudulent accounts on social media platforms like Facebook, X, and Instagram have been orchestrating fake donation campaigns.
For small businesses, falling for a fraudulent fundraiser can cause far more damage than just financial loss—it can link your company's name to scams, tarnish your reputation, and diminish the trust you've built with your clients, partners, and community.
Here's your comprehensive guide to thoroughly vetting fundraisers, identifying warning signs, and safeguarding your business's goodwill this holiday season.
Steps to Properly Vet a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these critical questions:
- Who is organizing this campaign, and what is their relationship to the beneficiary?
- Precisely how will the donated funds be allocated, and what is the timeline for disbursement?
- Who manages the withdrawal of funds? Is there a transparent process ensuring money reaches its intended destination?
- Are the recipient's close friends or family publicly endorsing the fundraiser?
If any answers are unclear or omitted, request clarification — silence or evasiveness should raise concern.
Warning Signs of Scam Fundraisers
Be cautious and investigate if you notice any of the following red flags:
- False or misleading information presented on the fundraiser page.
- Funds are not used for their stated purpose within a reasonable timeframe.
- Impersonation of others or plagiarized stories.
- Fundraising appeals that are overly perfect or manipulative in an emotional sense.
When multiple warning signs appear, report the fundraiser immediately and refrain from donating.
How to Evaluate Charities Beyond Crowdfunds
Even well-known charities can sometimes engage in questionable practices. Look for these indicators:
- Detailed program descriptions, transparent financial reports, and up-to-date annual disclosures.
- Clear breakdowns showing what portion of donations go directly to programs versus administrative costs.
- Online searches revealing terms like "fraud," "scam," or "complaints" linked to the charity's name.
Insufficient detail or negative reviews should prompt further caution.
Common Techniques Used by Charity Scammers
Stay alert for these tactics:
- Requests to donate through gift cards, wire transfers, or cryptocurrency; legitimate organizations accept credit card payments or checks.
- Websites lacking "https" in the URL, indicating insecure data handling.
- Pressure tactics urging you to donate immediately, designed to bypass rational decision-making.
- Claims that you have already pledged or donated, prompting unnecessary payments—always verify your records.
Scammers can craft sophisticated-looking sites and compelling headlines, but vigilance is key to uncovering deception.
Why Protecting Your Business from Charity Scams Matters
Your company's charitable contributions become part of its public image. A single donation linked to fraud, or unauthorized giving by employees using your business name, can severely harm your brand.
Moreover, the deceitful tactics used in charity scams—such as impersonation, fake websites, and urgent requests—overlap with methods targeting businesses through phishing, invoice fraud, and wire transfer scams. Training your employees to recognize fraudulent fundraisers strengthens your overall defense against cybercrime.
Practical Strategies to Safeguard Your Business and Its Reputation
Implement these essential steps to ensure your charitable efforts remain safe and effective:
- Establish a Donation Policy: Define where and how your company donates, including approval limits to control spending.
- Educate Your Team: Train employees to identify fake fundraisers and verify legitimacy before donating on behalf of your business.
- Use Verified Channels: Make donations directly through official charity websites rather than random email or social media links.
- Maintain Transparency: When publicizing donations, ensure the charities you support are carefully vetted.
- Monitor Your Donations: Follow up on how funds are used, as many organizations publish detailed impact reports.
Keep Your Holiday Giving Generous and Risk-Free
The holiday season is the perfect time to give back, but it shouldn't come with regrets. By implementing smart safeguards and policies, you protect both your contributions and your business's reputation.
Want to equip your team with the skills to identify scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 916-626-4000 or click here to book your complimentary 15-Minute Discovery Call today.
Because the most valuable gift you can offer your business and community this season is unshakable trust.
