November 17, 2025
Generosity often attracts scammers, but during the holiday season—when giving peaks and emotions run high—they become especially relentless.
Just a few years back, authorities dismantled a gigantic telefunding scam that made over 1.3 billion deceptive donation calls and fraudulently took in more than $110 million from well-meaning donors. (Federal Trade Commission)
Simultaneously, researchers at Cornell University uncovered that social media platforms hosted upwards of 800 fraudulent accounts orchestrating donation scams, redirecting victims towards fake fundraisers on sites like Facebook, X, and Instagram.
For small businesses, making even one mistake in charitable donations can cost more than money—it risks associating your brand with scams, harming your reputation and shaking trust with customers, partners, and your wider community.
Learn the essentials on how to thoroughly vet fundraisers, recognize warning signs, and protect both your business and goodwill during this festive season.
How To Carefully Vet Fundraisers Before Donating
Every trustworthy fundraiser should clearly provide:
- Details about the organizer and their relationship to the cause.
- Explicit explanation of how donations will be allocated and the timeline for use.
- Information on who manages the funds and how they will securely reach the intended recipients.
- Public endorsements from close connections (family or friends) of the beneficiary.
If any information seems unclear or missing, ask for further details—silence or vague responses should raise alarms.
Key Red Flags Indicating Potential Scams
Be cautious and pause your donation if you notice:
- False or misleading claims presented on the fundraiser's page.
- Funds failing to be used for their stated purpose within a reasonable time.
- Impersonation of individuals or recycling someone else's personal story.
- Stories that appear overly perfect or use excessive emotional manipulation.
Encountering several such warning signs demands reporting the fundraiser and steering clear of donations.
How To Vet Established Charities
Even reputable charities may have questionable practices; here is what to scrutinize:
- Clear, transparent descriptions of programs, finances, and annual impact reports.
- Disclosure on what percentage of donations directly support programs versus overhead costs.
- Search for the charity's name alongside keywords like "fraud," "scam," or "complaints" before committing.
Absence of transparency or negative feedback should raise serious concerns.
Common Tricks Employed By Charity Scammers
Be alert for tactics such as:
- Requests for payment via gift cards, wire transfers, or cryptocurrency; legitimate charities generally accept credit cards or checks.
- Websites lacking https security encryption—look for the "s" in the URL to ensure safe data handling.
- High-pressure tactics urging you to donate immediately to bypass your careful consideration.
- Claims that you've already pledged or donated when you have no recollection—always verify before proceeding.
Fraudsters can create convincing websites and compelling narratives to mask their malicious intent, so stay vigilant.
Why Charitable Giving Matters To Your Business
Your company's generosity—whether public or private—reflects directly on your brand identity. Donating to a scam, or allowing employees to give using your business name without oversight, can entangle your reputation in fraud scandals.
Moreover, the tactics used in charity scams—urgency, impersonation, bogus websites—mirror other business threats like phishing, invoice fraud, and wire transfer scams. Training your team to recognize fake fundraisers strengthens defense against a wider range of fraudulent schemes.
Protecting Your Business And Preserving Goodwill
Follow these critical steps to ensure your charitable efforts are safe and successful:
- Establish a Donation Policy: Clearly define your company's donation procedures and approval thresholds.
- Educate Employees: Train your team to recognize fake fundraisers and confirm legitimacy before donating on the company's behalf.
- Use Secure Channels: Always contribute through official charity websites, not random email or social media links.
- Ensure Transparency: If publicizing your donations, verify the credibility of the charities supported.
- Monitor Donations: After giving, track that funds are used as promised, reviewing charities' impact reports where available.
Celebrate The Holidays With Wise, Risk-Free Giving
The season is perfect for generosity—not regret. Applying smart precautions safeguards your funds and protects your business reputation.
Want to empower your team to spot scams—whether it's a fake fundraiser, phishing email, or fraudulent payment request?
Contact us at 919-741-5468 or click here to book your free 15-Minute Discovery Call today.
Because trust is the greatest gift you can give your business and community this holiday season.
