November 17, 2025
Scammers target generosity all year round, but they become especially aggressive during the holidays when heartfelt giving is at its peak.
Consider a recent large-scale telefunding scam that authorities dismantled after discovering over 1.3 billion fraudulent donation calls and the theft of more than $110 million from unsuspecting donors. (Federal Trade Commission)
Meanwhile, Cornell University researchers identified more than 800 social media accounts running donation scams, directing victims to fake fundraisers on platforms like Facebook, X, and Instagram.
For a small business, even one wrong donation can cost money, associate your business name with fraud, damage your reputation, and undermine trust from clients, partners, and your local community.
Learn how to thoroughly screen fundraisers, recognize warning signs, and protect your business and goodwill this holiday season.
Essential Tips to Vet Fundraisers Before Donating
Authentic fundraisers will provide clear answers to these key questions:
- Who is organizing this fundraiser, and what is their relationship with the recipient?
- Exactly how and when will the funds be used?
- Who manages the withdrawals, and how will the money reach its intended destination?
- Do close acquaintances—family or friends—of the recipient publicly support this campaign?
If you encounter vague or missing information, ask for clarification immediately. Avoid fundraisers that respond evasively or remain silent.
Warning Signs of Potential Scams
Be cautious if you notice any of the following red flags:
- False or deceptive content on the fundraiser's webpage
- Funds not used promptly for the stated cause
- Someone impersonating another person or copying a fundraising story
- Appeals that feel overly staged or emotionally manipulative
Spotting several of these signals means you should report the fundraiser and avoid donating.
How to Vet Charities Beyond Crowdfunding
Even well-known charities may hide questionable behavior. Check for:
- Clear program descriptions, detailed financial reports, and annual audits
- Information showing how much of each donation goes directly to programs vs. overhead
- Search results that include terms like "fraud," "complaints," or "scam" related to the charity's name
Missing details or negative feedback should immediately raise your suspicion.
Common Manipulative Tactics by Charity Scammers
Watch out for the following signs of scam tactics:
- Requests to donate using gift cards, wire transfers, or cryptocurrencies—legitimate charities typically accept credit cards or checks.
- Websites lacking HTTPS encryption (notice the secure "s" in the URL), indicating unsafe data transmission.
- Urgent demands to donate immediately—this pressure aims to bypass your careful thinking.
- Claims that you already donated or pledged without your recollection—always double-check before giving.
Beware: even professional-looking websites and persuasive headlines can conceal malicious schemes.
Why This Matters for Your Business Reputation
Your company's charitable acts—whether publicized or private—reflect directly on your brand identity. Donations to scams or employee giving under your company's name can entangle your brand in fraudulent activities.
Moreover, the same deceitful tactics found in charity scams—such as urgency, impersonation, and fake websites—are often employed in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to recognize fake fundraisers strengthens their ability to detect various forms of fraud.
Proven Steps to Safeguard Your Business and Its Goodwill
Follow these guidelines to keep your donations safe and effective:
- Establish a Donation Policy: Set clear rules about where and how your company donates, along with approval requirements.
- Employee Education: Train your team to discern and verify fundraising campaigns before donating using your company's name.
- Donate Through Trusted Sources: Always give via official charity websites instead of random email or social media links.
- Maintain Transparency: If you publicize donations, validate and confirm the legitimacy of the charities you support.
- Monitor Donations Post-Gift: Follow up to ensure funds are properly utilized, leveraging charities' published impact reports when available.
Keep Your Holidays Joyful and Secure
The holiday season is about sharing generosity—not regret. Applying these verification steps and policies protects both your finances and trusted reputation.
Need expert guidance to help your team identify scams—be it fake fundraisers, phishing emails, or fraudulent payment requests?
Reach out now at 985-302-3083 or click here to book A Quick Call today.
Because the greatest gift to protect your business and community is unshakable trust.
