November 14, 2025
Scammers prey on generosity every season, but during the holidays, when giving is at its peak and emotions run strong, their attacks become relentless.
Just a few years back, a major telefunding scam was dismantled after authorities revealed the culprits had made an astonishing 1.3 billion fraudulent donation calls and fraudulently collected over $110 million from well-meaning donors. (Federal Trade Commission)
Meanwhile, Cornell University researchers uncovered that on social media alone, more than 800 accounts ran donation scams, directing victims to fake fundraisers hosted on platforms like Facebook, X, and Instagram.
For small businesses, one careless charitable donation can cost more than money — it risks linking your brand to fraud, harming your reputation and undermining trust with clients, partners, and the community.
Here's your essential guide to verifying fundraisers, recognizing warning signs, and protecting your business's integrity and goodwill this season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these key questions:
- Who is behind this fundraiser, and what is their relationship to the recipient?
- How exactly will the donations be used, and what is the timeline for these expenditures?
- Who manages the withdrawal of funds? Is there a transparent process ensuring the money reaches the intended cause?
- Are close associates of the recipient, like family or friends, openly supporting the campaign?
If any of this information is unclear or missing, request more details. Evasive responses or silence are strong red flags.
Watch for These Red Flags Indicating Potential Scams
Stop and scrutinize if you notice:
- False, misleading, or inconsistent information on the fundraiser's page.
- Delays or misuse of collected funds contrary to stated purposes.
- Impersonation of individuals or plagiarized stories to evoke sympathy.
- Emotional narratives that feel overly perfect or manipulative.
If you encounter multiple warning signs, report the fundraiser immediately and refrain from donating.
How to Scrutinize Charities, Beyond Just Crowdfunding Campaigns
Even well-established charities can engage in questionable practices. Look out for:
- Clear, transparent descriptions of programs, detailed financial reports, and annual disclosures.
- Information revealing what proportion of donations is directed to programs versus administrative overhead.
- Search results associating the charity name with terms like "fraud," "scam," or "complaints."
Any absence of detail or numerous negative reviews should raise immediate caution.
Common Tricks Employed by Charity Scammers
Be vigilant against these common tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrencies—reputable charities typically accept credit cards and checks.
- Websites lacking https security indicators (without the "s"), which means your data isn't safely transmitted.
- High-pressure appeals urging you to donate immediately to quash rational decision-making.
- Claims that you have already pledged or donated when you don't recall—it's vital to always verify before sending money.
Remember, scammers craft polished websites and persuasive narratives to mask their true malicious intentions.
Why Protecting Your Business from Charity Scams Matters
Every business donation, public or private, reflects on your brand. A misdirected donation or even an employee giving under your company's name to a fraudulent cause can tarnish your reputation.
Moreover, the same manipulative tactics used in charity scams—such as urgency, impersonation, and fake websites—also target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to defend against these broader fraud threats.
Practical Tips to Shield Your Business and Reputation
Follow these proven steps to keep your donations safe and your business protected:
- Establish a Corporate Donation Policy: Set clear guidelines on donation processes and approval limits.
- Educate Employees: Train your staff to recognize fake fundraisers and insist on verification before donating under your business name.
- Use Official Channels: Always donate via verified charity websites rather than random links from emails or social media.
- Maintain Transparency: If you publicize your donations, ensure the charities you support have been thoroughly vetted.
- Monitor Donations: Follow up on donations to confirm funds are applied as promised—many reputable charities provide impact reports.
Give Generously This Holiday Season—But Stay Protected
The holiday spirit is all about giving back, not falling victim to scams. By applying smart safeguards and clear policies, you protect both your money and your company's hard-earned reputation.
If you want your team to learn how to spot scams—whether they're fake fundraisers, phishing emails, or fraudulent payment requests—
give us a call at 702-745-9468 or click here to book your free 10-Minute Discovery Call today.
Because the greatest gift you can offer your business and community is trust that cannot be taken away.
