November 17, 2025
Scammers are always lurking around generosity, even during prosperous times. But the holiday season, with its surge in giving and heightened emotions, is when these fraudsters strike most aggressively.
Not long ago, a large-scale telefunding fraud was exposed, revealing perpetrators had made an astounding 1.3 billion deceptive donation calls and illicitly raised over $110 million from unsuspecting donors. (Federal Trade Commission)
Meanwhile, research from Cornell University uncovered that over 800 social media accounts were running donation scams, steering victims towards fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, even a single miscalculated donation can cost more than money — it can link your business's name to fraud, tarnish your reputation, and diminish trust among clients, partners, and the community.
Discover how to thoroughly vet fundraisers, recognize warning signs, and safeguard your business's goodwill this holiday season.
Steps to Verify a Fundraiser Before Donating
A trustworthy fundraiser should clearly answer:
- Who is behind the campaign and what is their relationship to the cause?
- How will the donations be allocated, and within what timeframe?
- Who manages the withdrawal of funds, and is the process transparent?
- Are close family or friends of the beneficiary publicly endorsing the fundraiser?
If any answers are unclear or incomplete, request further details before contributing. Evasive responses are a serious warning sign.
Warning Signs That Often Reveal Scams
Be cautious and investigate if you notice:
- False or misleading information presented on the fundraiser's page.
- Delay or misallocation of funds away from the stated cause.
- Use of someone else's identity or plagiarized stories to solicit donations.
- Appeals that feel overly perfect or manipulate emotions excessively.
If multiple red flags appear, we strongly recommend reporting the fundraiser and refraining from donating.
How to Evaluate Charities Beyond Crowdfunding Sites
Even established charities can hide questionable practices. Watch for:
- Clear, detailed program descriptions, financial reports, and annual disclosures.
- Transparency on allocation of donations between programs and administrative costs.
- Any online search results highlighting "fraud," "scam," or "complaints" associated with the charity.
A shortage of information or negative feedback should raise concern.
Common Scam Techniques Used by Charity Fraudsters
Stay alert to these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency — legitimate charities usually accept credit cards or checks.
- Websites lacking HTTPS encryption (check for "s" in the URL), risking data security.
- Pressure to donate immediately, leveraging urgency to bypass thoughtful decision-making.
- Claims that you've already pledged or donated when you have no recollection—always verify before proceeding.
These fraudsters are sophisticated, often hiding behind convincing websites and professional-sounding narratives.
Why Protecting Your Business Matters
Your company's charitable contributions—whether publicized or private—reflect on your brand. A donation to a fraudulent fundraiser, or an employee's unauthorized giving in your company's name, can entangle your brand in scandals.
Moreover, the tactics used in charity scams—such as impersonation, bogus websites, and urgent demands—overlap with attacks like phishing, invoice fraud, and wire transfer scams. Training your staff to identify fake fundraisers also equips them to prevent wider fraud threats.
How to Safeguard Your Business and Its Goodwill
Follow these key strategies to ensure your donations remain secure and effective:
- Create a Donation Policy: Set clear guidelines on how your company donates, including approval limits.
- Educate Employees: Inform your team about fake fundraisers and insist on verifying causes before donating under your business name.
- Donate Through Verified Channels: Always use official charity websites rather than unknown links from emails or social media.
- Promote Transparency: If your business announces donations, confirm the credibility of supported charities.
- Monitor Donations: After contributing, follow up to ensure funds are applied as intended (many charities issue impact reports).
Keep Your Holiday Giving Generous, Not Risky
The holiday season should be a time to give back with confidence—not a time to regret missteps. Establishing smart policies and safeguards protects both your finances and your hard-earned reputation.
Want to empower your team with the skills to identify scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Call us at 888-820-2992 or click here to schedule your free 15-Minute Discovery Call consultation today.
Because the greatest gift you can offer your business and community is unshakable trust.
