November 17, 2025
Even in stable times, scammers prey on generosity—but during the holiday season, when giving spikes and emotions soar, these fraudsters strike with increased ferocity.
Notably, a major telefundraising fraud was dismantled after authorities uncovered that scammers had made over 1.3 billion deceptive donation calls, illegally collecting more than $110 million from unsuspecting donors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University revealed that on social media alone, upwards of 800 accounts run donation scams, steering victims toward fraudulent fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, even a single error in charitable contributions can do more than cause financial loss—it can associate your brand with fraud, undermine your reputation, and weaken trust among clients, partners, and the broader community.
Here's your essential guide to thoroughly vetting fundraisers, identifying warning signs, and safeguarding your business and goodwill this holiday season.
Essential Steps to Vet Fundraisers Before Donating
A trustworthy fundraiser should transparently answer these key questions:
- Who is behind the fundraiser, and what is their relationship to the beneficiary?
- How will the donations be allocated, and over what timeframe?
- Who manages the fund withdrawals? Is there a clear process ensuring the money reaches its intended destination?
- Do close allies of the beneficiary (family or friends) publicly endorse the campaign?
If any answers are unclear or missing, seek detailed explanations. Lack of response or evasiveness is a major warning sign.
Warning Signs That You Should Never Ignore
Pause and investigate if you encounter any of these red flags:
- False or misleading details presented on the fundraiser page
- Funds not being deployed for the promised cause within a reasonable period
- Attempts to impersonate others or plagiarize someone else's heartbreaking story
- Stories that feel too perfect or overly emotional to manipulate sympathy
Spotting several signs like these? Report the fundraiser immediately and refrain from donating.
How to Scrutinize Established Charities (Not Just Crowdfunding Campaigns)
Even reputable organizations can sometimes engage in questionable practices. Here's what to verify:
- Availability of clear program explanations, transparent financial records, and yearly reports
- Disclosure of the proportion of donations used on programs versus administrative costs
- Search results for the charity name indicating any terms like "fraud," "scam," or "complaints"
Avoid organizations showing poor transparency or negative feedback.
Common Tricks Used by Charity Scammers
Be alert for these tactics:
- Requests to donate through gift cards, wire transfers, or cryptocurrency—remember, legitimate charities typically accept credit cards or checks.
- Websites lacking https security (look for the "s" in the URL), which indicates unsafe data transmission.
- Pressure to contribute immediately—this urgency aims to prevent you from double-checking.
- Claims that you've already pledged or donated when you don't recall doing so—always confirm before proceeding.
Never forget: scammers are sophisticated. Even well-designed websites and appealing messages can mask malicious intent.
Why Protecting Your Business Matters
Your business's charitable contributions—whether public or private—become part of your brand identity. A donation to a fraudulent cause, or an employee giving in the company's name unwisely, could embroil your brand in scandal.
Moreover, fraudsters exploit the same tactics used in charity scams—urgency, impersonation, fake websites—to target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to combat fraud in broader contexts.
How to Safeguard Your Business and Its Goodwill
Implement these strategic steps to ensure your donations are secure and effective:
- Business Donation Policy: Define clear guidelines outlining where and how your company donates, including approval limits.
- Employee Education: Inform your team about fake fundraisers, encouraging verification before donating on behalf of your business.
- Trust Verified Channels: Always donate through official charity websites rather than random links in emails or social media messages.
- Commit to Transparency: When publicly supporting a charity, confirm its legitimacy and credibility.
- Ongoing Verification: Monitor the use of your donation funds post-gift, leveraging impact reports many charities publish.
Maintaining Generosity Without Risk This Holiday Season
The holiday season is meant for heartfelt giving, not painful regrets. By following smart vetting processes and implementing secure policies, you protect both your money and your business reputation.
Ready to arm your team with the skills to identify scams—whether a fake fundraiser, phishing email, or fraudulent payment request?
Contact us at 817-589-0808 or click here to schedule your free 30-Minute Discovery Call today.
Because nothing is more valuable to your business—and your community—than unshakable trust.
