November 17, 2025
Even in the best of times, scammers swarm around generosity. Yet during the holiday season — when giving is heightened and emotions run strong — these fraudsters strike hardest.
A few years ago, authorities dismantled a massive telefunding fraud operation that made 1.3 billion deceitful donation calls and swindled over $110 million from well-meaning donors. (Federal Trade Commission)
Meanwhile, Cornell University researchers uncovered over 800 social media accounts running donation scams across platforms like Facebook, X, and Instagram, steering victims toward bogus fundraisers.
For small businesses, mistakenly supporting fraudulent causes costs more than money — it links your brand to scams, harms your reputation, and undermines trust with clients, partners, and your community.
Learn how to thoroughly vet fundraisers, identify warning signs, and safeguard your business and goodwill this holiday season.
How to Thoroughly Vet Fundraisers Before Donating
A legitimate fundraiser will openly provide clear answers to these critical questions:
- Who is organizing the campaign, and what is their relationship to the beneficiary?
- Exactly how will the donations be allocated, and over what timeframe?
- Who manages fund withdrawals, and is there a transparent process ensuring funds reach the intended recipients?
- Do trusted family members or friends publicly endorse the fundraiser?
If any answers seem unclear or are missing, request further details—avoid silence or evasive responses, as they are major red flags.
Common Red Flags Indicating Fundraising Scams
Be cautious and investigate if you notice any of the following signs:
- The fundraiser page contains misleading or blatantly false information.
- Funds are not disbursed as promised within a reasonable period.
- The organizer impersonates someone else or copies their story.
- Stories feel overly perfect or are designed to manipulate emotions excessively.
Spotting multiple warning signs? Report the fundraiser and refrain from donating.
How to Vet Charities Beyond Crowdfunding Campaigns
Even well-known charities can have questionable practices; look out for:
- Clear program descriptions, detailed financial reports, and publicly available annual updates.
- Transparent breakdowns showing the percentage of donations directed to actual programs versus overhead.
- Search results that associate the charity's name with terms like "fraud," "scam," or "complaints."
Insufficient detail or negative reviews should trigger caution.
Watch Out for Common Charity Scam Tactics
Be wary of:
- Requests for payment via gift cards, wire transfers, or cryptocurrency; legitimate charities typically accept credit cards or checks.
- Websites lacking https (check for the "s"), indicating insecure data handling.
- Urgent demands to donate immediately, a common ploy to bypass rational decision-making.
- Claims that you have already pledged or donated when you don't recall—always verify before giving.
Remember, scammers are sophisticated; even professional-looking websites and compelling headlines may hide deceitful motives.
Why Ensuring Secure Giving Matters for Your Business
Every charitable donation your business makes — publicly or privately — shapes your brand's reputation. Contributing to a scam, or having an employee donate on behalf of your company without verification, can entangle your brand in fraud narratives.
Additionally, fraudsters employ similar tactics used in charity scams—urgency, impersonation, fake websites—to target businesses through phishing, invoice fraud, and wire transfer schemes. Training your employees to identify fake fundraisers also strengthens their ability to spot broader fraud tactics.
Practical Steps to Protect Your Business and Its Generosity
Adopt these measures to ensure your donations are both safe and impactful:
- Establish a Clear Donation Policy: Define your company's charitable giving guidelines, including approval limits and authorized recipients.
- Educate Employees: Train your team to recognize fake fundraisers and verify all donations made under the company's name.
- Use Verifiable Channels: Donate exclusively through official charity websites—not via random email or social media links.
- Maintain Transparency: Publicize your company's donations carefully by confirming the legitimacy of charities you endorse.
- Monitor Donations Continuously: Follow up to confirm funds are used as intended; many charities provide impact reports for review.
Keep Your Holiday Giving Secure and Generous
The holiday season is an opportunity to give generously—not to expose yourself to risk. Instituting smart checks and solid policies will protect both your resources and your reputation.
Want your team equipped to spot scams — whether fake fundraisers, phishing emails, or fraudulent payment requests?
Reach out today by calling 610-628-2461 or click here to schedule your complimentary IT Clarity Call.
Because the best gift your business and community can receive is unwavering trust that no scam can steal.
