November 17, 2025
Scammers are always lurking around acts of generosity, but they become especially active during the holiday season when giving surges and emotions are heightened.
Consider this: a few years ago, a major telefunding scam was uncovered after authorities revealed that the fraudsters made over 1.3 billion deceptive donation calls and swindled more than $110 million from unsuspecting donors. (Federal Trade Commission)
Simultaneously, researchers at Cornell University found that on social media platforms alone, over 800 fake accounts ran donation scams, directing donors to fraudulent fundraisers across Facebook, X, and Instagram.
For a small business, falling victim to a charity scam can cost more than money — it can tarnish your company's reputation and erode the trust of customers, partners, and your community.
Here's your essential guide to verifying fundraisers, identifying warning signs, and safeguarding your business's charitable goodwill this holiday season.
How to Verify a Fundraiser Before Donating
Authentic fundraisers should provide clear answers to these questions:
- Who is organizing the fundraiser and what is their relationship to the beneficiary?
- How will the donations be used and within what timeframe?
- Who controls the withdrawal process? Is there a direct and transparent path for funds to reach their intended cause?
- Do close associates (family, friends) of the recipient publicly support the campaign?
If any answers are unclear or missing, ask for clarification first. Dodging questions or silence is a clear warning sign.
Warning Signs That Often Indicate Scams
Be cautious and investigate further if you notice any of these red flags:
- Deceptive or blatantly false information on the fundraiser's page
- Donations not being allocated as promised within a reasonable time frame
- Impersonation of others or copied stories to gain sympathy
- Fundraising stories that feel overly perfect or overtly emotionally manipulative
If you detect multiple warning signs, report the fundraiser immediately and refrain from donating.
How to Vet Established Charities
Even well-known charities can sometimes have questionable practices. Watch for:
- Transparent descriptions of programs, detailed financial reports, and annual disclosures
- Clear breakdowns showing how much of each donation directly supports programs versus administrative costs
- Search results including terms like "fraud," "scam," or "complaints" associated with the charity's name
A scarcity of details or negative feedback should raise caution.
Common Fraud Methods Used by Charity Scammers
Be alert for these deceitful tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency — authentic charities typically accept credit cards or checks.
- Websites lacking secure HTTPS connections (look for the "s" after "http") indicating insecure data handling.
- High-pressure tactics urging you to donate immediately — a common ploy to avoid second thoughts.
- Claims that you already donated without your recollection — always verify before sending money.
Scammers often use professional-looking websites and persuasive headlines to disguise their malicious intent.
Why Protecting Your Business Matters
Your business's charitable contributions, whether public or private, reflect directly on your brand. Falling victim to a scam, or having employees donate under your company's name unwittingly, can drag your reputation into a fraud scandal.
Moreover, the tactics fraudsters use in charity scams — urgency, impersonation, fake websites — overlap with scams targeting businesses, including phishing, invoice fraud, and wire transfer scams. Teaching your team to recognize fake fundraisers equips them to identify fraud risks across all areas.
How to Safeguard Your Business and Reputation
Implement these best practices for secure and wise giving:
- Define a Corporate Donation Policy: Establish clear guidelines on how, where, and under what approval process donations occur.
- Train Your Employees: Educate staff on identifying fake fundraisers and encourage verification before donating on behalf of the company.
- Use Trusted Donation Channels: Contribute directly through official charity websites rather than random links received via email or social media.
- Practice Transparency: When publicly announcing donations, ensure the receiving charity's credibility is thoroughly vetted.
- Monitor Donation Impact: Follow up to confirm donations are used as promised; many charities publish impact reports for accountability.
Keep Your Holiday Giving Secure and Meaningful
The holiday season offers a wonderful opportunity to give back — don't let it turn into a time of regrettable losses. Establishing smart safeguards ensures your contributions protect both your funds and your reputation.
Want your team to become experts at spotting scams, whether fake fundraisers, phishing emails, or fraudulent payment requests?
Call us at 702-896-7207 or click here to schedule your free 15-Minute Discovery Call today.
Because the most valuable gift you can give your business and community is unshakable trust.
