November 17, 2025
Scammers are always lurking around acts of generosity, but during the holiday season—when giving is at its peak and emotions run high—they become especially aggressive.
Just a few years back, a sweeping telefunding scam was uncovered where fraudsters made 1.3 billion deceptive donation calls and netted over $110 million from unsuspecting donors, according to the Federal Trade Commission.
Meanwhile, Cornell University researchers identified more than 800 social media accounts running donation scams, steering victims to fraudulent fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable donations can cost more than money—it can link your brand to scams, tarnish your reputation, and undermine trust among clients, partners, and your community.
Here's your essential guide to thoroughly vetting fundraisers, spotting warning signs, and safeguarding your business's generosity this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will clearly answer these questions:
- Who is behind the fundraiser and what relationship do they have with the recipient?
- How will the donations be used specifically, and what is the timeframe for usage?
- Who manages the withdrawals, and is there a transparent process ensuring funds reach the intended beneficiary?
- Do close contacts such as family or friends publicly endorse the campaign?
If any detail feels unclear or is omitted, demand clarification. Silence or vague answers are strong red flags.
Common Red Flags Highlighting Potential Scams
Watch out and pause if you encounter any of the following:
- False or misleading information presented on the fundraiser's page
- Funds not used for stated purposes within reasonable timeframes
- Cases of impersonation or copied stories from others
- Emotionally manipulative or "too perfect" narratives designed to evoke sympathy
If several warning signs arise, report the fundraiser immediately and avoid donating.
How to Vet Charitable Organizations (Beyond Crowdfunds)
Even reputable charities may engage in questionable practices. Look for:
- Detailed program descriptions, clear financial statements, and up-to-date annual reports
- Transparent breakdowns showing what percentage of donations fund programs versus overhead costs
- Search results for the charity's name including terms like "fraud," "scam," or "complaints"
Incomplete information or negative feedback should raise immediate caution.
Recognize Typical Scam Tactics in Charity Appeals
Beware of:
- Requests to donate using gift cards, wire transfers, or cryptocurrencies—legitimate charities typically accept credit cards or checks.
- Websites lacking https security (look for "s" at the end) indicating unsafe data transfers.
- Urgent pressure to give immediately—a tactic used to prevent careful consideration.
- Claims you've already pledged or donated without your recollection—always verify before paying.
Scammers can create polished sites and convincing messages that mask their malicious intent.
Why This Matters for Your Business
Your business's charitable giving—whether publicized or confidential—becomes part of your brand identity. Associating with a scam through your donations or employee giving can drag your reputation into disrepute.
Additionally, fraud techniques used in charity scams like urgency, impersonation, and fake websites also target businesses through phishing, invoice fraud, and wire scams. Training your staff to recognize fraudulent fundraisers equips them to detect a wide range of scam tactics.
Protecting Your Business's Generosity and Goodwill
Implement these key measures for safe, effective giving:
- Establish a Donation Policy: Define your company's donation procedures and approval limits.
- Educate Employees: Train your team about fake fundraisers and encourage verification before donating under your company's name.
- Use Trusted Donation Channels: Always contribute through verified charity websites, not random email or social media links.
- Maintain Transparency: If your business publicizes charitable giving, vet the charities you endorse and support.
- Regularly Monitor Donations: Follow up to confirm funds are spent as promised, since reputable charities often release impact reports.
Keep Your Holidays Generous and Secure
The holidays should be a time of giving without worry or regret. Implementing smart policies and vigilant checks will protect both your financial contributions and your business reputation.
Want your team to confidently detect scams—from fraudulent fundraisers to phishing attempts and fake payment requests?
Contact us at 760-770-5200 or click here to schedule your complimentary Quick and Easy Call today.
Because the greatest gift you can give your business and community is trust that stands strong.
