November 17, 2025
Scammers never rest, especially around generous seasons like the holidays when giving spikes and emotions are heightened. They seize these moments to exploit kindness.
A shocking example is a massive telefunding scam that authorities dismantled after uncovering 1.3 billion deceptive donation calls made, resulting in stolen funds exceeding $110 million. (Federal Trade Commission)
Research from Cornell University reveals that over 800 social media accounts run donation scams, pushing victims towards fraudulent fundraisers on platforms such as Facebook, X, and Instagram.
For small businesses, a single error in charitable giving can cause more than financial loss—it can associate your business with fraud, harm your reputation, and diminish trust from clients, partners, and your community.
Learn how to thoroughly vet fundraisers, recognize warning signs, and safeguard your company's goodwill this holiday season.
Essential Steps To Vet A Fundraiser Before Donating
A trustworthy fundraiser should provide clear answers to these critical questions:
- Who is behind the fundraiser, and what is their relationship to the cause?
- How will the donations be utilized specifically, and within what timeframe?
- Who manages the withdrawal of funds, and is there a transparent channel ensuring money reaches the intended recipients?
- Are close contacts of the beneficiary (family, friends) publicly endorsing the campaign?
If any information seems unclear or missing, request clarification immediately. Avoid fundraisers that respond evasively or remain silent.
Common Red Flags That Indicate scams
Be cautious if you notice any of these warning signals:
- False or misleading details on the fundraiser's page
- Funds not being allocated to the specified purpose within a reasonable period
- Impersonation of individuals or stolen personal stories
- Fundraiser narratives that feel too perfect or emotionally manipulative
If several of these signs appear, refrain from donating and report the campaign.
How To Vet Established Charities Effectively
Even reputable charities can display questionable behavior. Watch for:
- Clear program descriptions, detailed financial breakdowns, and accessible annual reports
- Transparent data on how much of each donation goes directly to programs versus administrative costs
- Search results associating the charity's name with keywords like "fraud," "scam," or "complaints"
Insufficient detail or negative feedback should raise your caution.
Beware Of Common Charity Scam Techniques
Watch for these tactics often employed by scammers:
- Requests to donate through gift cards, wire transfers, or cryptocurrency - legitimate organizations accept credit cards or checks.
- Fundraiser websites lacking "https" security encryption, which exposes your data to risk.
- Pressure to make an immediate donation - urgency is used to bypass critical thinking.
- Claims that you already pledged or donated without your recollection - always verify before paying.
Scammers often create convincing websites and persuasive messages, but their intentions remain fraudulent.
Why Charitable Giving Matters To Your Business
Your business's charitable contributions, whether public or private, reflect on your brand identity. Associating your name with a scam can seriously damage your brand.
Moreover, many fraudulent techniques found in charity scams—such as impersonation, fake websites, and urgent donation requests—also target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to recognize fake fundraisers equips them to spot a wide range of scams.
Protect Your Business And Preserve Its Goodwill
Follow these proven strategies to ensure your donations are safe and impactful:
- Establish A Donation Policy: Define clear rules on how donations are approved and the channels through which your company will give.
- Educate Employees: Train your team to recognize and double-check suspicious fundraisers before contributing in your company's name.
- Use Verified Channels: Make donations directly via official charity sites, avoiding random links from emails or social media.
- Maintain Transparency: If your business publicly announces donations, verify the integrity of charities you support.
- Monitor Post-Donation: Follow up on how donations are used, many charities provide impact reports for accountability.
Enjoy A Generous And Secure Holiday Season
The holiday season is a perfect time to give back, but it should never end in regret. Applying smart verification steps and solid policies protects both your funds and your business's reputation.
Need help training your team to identify scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Call us at 929-523-2921 or click here to schedule your free Call With Our CEO today.
Because the most valuable gift to your business and community is the unshakable trust that scams cannot steal.
