November 17, 2025
Scammers are always lurking around acts of kindness, but the holiday season—with its surge in generosity and heightened emotions—is when they strike hardest.
Consider the massive telefunding scam uncovered a few years ago, where fraudsters made a staggering 1.3 billion deceptive donation calls and illicitly gathered over $110 million from unaware donors. (Federal Trade Commission)
Similarly, Cornell University researchers found that on social media platforms alone, over 800 fraudulent accounts promoted fake fundraisers, misleading victims on sites like Facebook, X, and Instagram.
For small businesses, one wrong move in charitable giving can cost more than money — it can associate your brand with fraud, harm your reputation, and undermine trust with customers, partners, and the wider community.
Here's your essential guide to screening fundraisers, spotting warning signals, and safeguarding both your business and goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to:
- Who is organizing the fundraiser, and what is their relationship to the beneficiary?
- Precisely how will the funds be allocated, and within what timeframe?
- Who manages the withdrawal of funds? Is there a transparent process ensuring the money reaches its intended purpose?
- Do close associates of the recipient, like family and friends, publicly endorse the campaign?
If any information is unclear or missing, request further detail. Silence or evasive responses are strong red flags.
Warning Signs That Often Indicate Scams
Immediately pause and investigate if you notice:
- False or misleading details presented on the fundraiser's page.
- The funds are not used as promised within a reasonable period.
- Impersonation of other individuals or copying someone else's story.
- Fundraising stories that feel too perfect or emotionally manipulative.
If you identify multiple red flags, report the fundraiser and avoid donating.
Thoroughly Vetting Established Charities
Even reputable charities can sometimes be questionable. Watch for:
- Clear, detailed program descriptions, financial transparency, and accessible annual reports.
- Information showing how donations are divided between programs and administrative costs.
- Online searches that reveal complaints using keywords like "fraud," "scam," or "reviews."
Absence of transparency or negative feedback warrants caution.
Common Fraud Techniques Used by Charity Scammers
Beware of these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Fundraising websites lacking https in the URL, indicating insecure data transmission.
- High-pressure appeals urging you to donate immediately—a common ploy to prevent careful thought.
- Claims that you've already pledged or donated that don't match your memory—always verify before donating.
Remember, scammers can create professional-looking sites and compelling narratives to mask their malicious aims.
Why Protecting Your Business From Charity Scams Matters
Your business's generosity—whether public or private—shapes its reputation. Falling victim to a scam, or having an employee donate fraudulently in your company's name, can entangle your brand in controversy.
Even more concerning, many fraudulent tactics used in charity scams—such as urgency, impersonation, and fake websites—are also common in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to detect fake fundraisers strengthens your defenses against a wide range of threats.
Smart Strategies to Safeguard Your Business and Generosity
Implement these measures to keep donations secure and wise:
- Establish a Donation Policy: Define clear guidelines for how and where donations will be made and set approval limits.
- Educate Employees: Train your team to recognize scam fundraisers and encourage verification before donating under the company name.
- Use Trusted Donation Channels: Always donate through official charity websites—not random links in emails or social media.
- Maintain Transparency: If your business promotes its donations publicly, ensure the charities are verified.
- Monitor Donations: Follow up to confirm that contributions are used as intended, utilizing charity impact reports when available.
Give Generously, Do So Safely This Holiday Season
The holidays are the perfect time to give back—but they shouldn't be a time to regret your generosity. Implementing robust checks and policies ensures your money—and your reputation—are protected.
Want your team equipped to identify scams, whether through fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 720-449-3379 or click here to book your free 15-Minute Discovery Call today.
Because the greatest gift you can offer your business and community is unshakable trust.
