November 17, 2025
Scammers are always lurking around acts of kindness, especially during the holiday season when generous giving peaks and emotions run strong. Unfortunately, this period is when fraudsters strike hardest.
In a notable case from a few years back, authorities dismantled a massive telefunding scam that involved 1.3 billion deceptive calls to potential donors and raised over $110 million from unwitting contributors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University uncovered more than 800 fraudulent donation accounts on social media platforms like Facebook, X, and Instagram that directed donors to fake fundraising campaigns.
For small businesses, a single misjudgment in charitable giving can result in more than just financial loss—it could link your company's name to scams, harm your brand reputation, and diminish trust among clients, partners, and the wider community.
Here's your essential guide to thoroughly screening fundraisers, identifying danger signs, and safeguarding your business and generosity this season.
Steps to Verify a Fundraiser Before Donating
A genuine fundraiser should provide transparent answers to the following:
- Who is organizing this effort, and what is their relationship to the beneficiary?
- How will the donations be allocated, and over what timeframe?
- Who manages the withdrawal process, and is there a clear route for funds to reach the intended recipient?
- Are close contacts such as family or friends publicly endorsing the campaign?
If any answers seem unclear or incomplete, request more information. Silence or vague responses should raise immediate concern.
Warning Signs That Indicate Potential Scams
Pause and investigate if you notice any of these red flags:
- Deceptive or false claims presented on the fundraiser's page
- Donations not used for their stated purpose within a reasonable period
- Impersonation of others or stolen personal stories
- Fundraising stories that appear too flawless or are emotionally manipulative
If multiple warning signs surface, report the fundraiser and withhold donations.
How to Vet Established Charities (Beyond Crowdfunding)
Even reputable charities can sometimes display questionable behavior. Look for these indicators:
- Clear descriptions of programs, financial reports, and annual statements
- Information detailing how much of each donation goes toward programs versus administrative costs
- Alerts from online searches containing terms like "fraud," "scam," or "complaints" linked to the charity's name
Absence of transparency or negative feedback should prompt caution.
Tactics Commonly Employed by Charity Scammers
Stay vigilant for these signs:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—trusted charities prefer credit cards or checks.
- Donation websites lacking secure https encryption (check for "https" at the URL start). This means your data isn't protected.
- Pressure to give immediately—creating a false urgency to prevent you from thinking carefully.
- False claims that you've already pledged or donated when you don't recall doing so—always verify before paying.
Fraudsters may present polished websites and convincing headlines, but their motives are deceitful.
Why Protecting Your Business From Charity Scams Matters
Your company's charitable acts, whether public or private, reflect on your brand. Falling victim to or being associated with charity fraud can tarnish your reputation significantly.
Moreover, the same deceptive tricks used in charity scams—urgency tactics, impersonation, and counterfeit websites—also target businesses through phishing, invoice fraud, and wire scams. Educating your employees to identify fake fundraisers strengthens your defenses against a wide range of fraud schemes.
Effective Strategies to Safeguard Your Business and Its Goodwill
Implement these key steps to secure your donations:
- Create a Donation Policy: Establish clear guidelines on how and where your company donates, including approval processes for each donation.
- Train Employees: Inform your team about fake fundraisers, encouraging them to verify legitimacy before donating in the company's name.
- Use Reliable Channels: Donate directly through verified charity websites instead of clicking links from unsolicited emails or social media posts.
- Maintain Transparency: If your business publicly announces donations, ensure the charities supported are reputable and verified.
- Monitor Impact: Follow up to confirm that funds have been used as intended, checking published impact reports whenever available.
Enjoy a Season of Generosity Without Risk
Holidays are the perfect time to give back—make sure your contributions bring joy, not regret. Smart policies and vigilant checks protect your funds and your business reputation.
Want to empower your team to recognize scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Contact us at 314-993-5528 or click here to schedule your free 10-Minute Discovery Call today.
Because the greatest gift you can offer your business and community is unshakeable trust.
