November 17, 2025
Scammers constantly prey on generosity, but their activity surges during the holiday season when donations increase and emotions run deep.
Notably, authorities recently dismantled a vast telefunding scam responsible for an astounding 1.3 billion deceptive donation calls, swindling over $110 million from unsuspecting contributors. (Federal Trade Commission)
Meanwhile, researchers from Cornell University uncovered over 800 social media accounts running fraudulent donation campaigns on platforms like Facebook, X, and Instagram, steering victims toward fake fundraisers.
For small businesses, even a single mistake in charitable giving can cost more than money—it risks entangling your brand with fraud, harming your reputation, and diminishing trust among clients, partners, and your community.
Use these essential guidelines to thoroughly vet fundraisers, recognize warning signs, and protect your business's goodwill this holiday season.
Essential Steps to Verify a Fundraiser Before Donating
A legitimate fundraiser will clearly address these critical points:
- Who is behind the campaign, and what ties do they have to the beneficiary?
- Exactly how will the funds be allocated, and over what timeline?
- Who controls the withdrawal of funds, and is there transparency in the transfer?
- Are close contacts, like family or friends, openly endorsing the campaign?
If answers are unclear or omitted, seek further clarification. Silence or evasion is a strong red flag.
Spotting Warning Signs That Indicate Scams
Pause and investigate if you encounter any of these red flags:
- Misleading or false claims featured on the fundraiser page
- Funds not used promptly or for the declared purpose
- Impersonation of other individuals or plagiarized stories
- Stories that feel too perfect or emotionally manipulative
When multiple red flags surface, report the fundraiser and refrain from donating.
How to Vet Charities Beyond Crowdfunding
Even well-known charities may have dubious practices. Focus on these indicators:
- Transparent program details, financial statements, and annual reports
- Clear breakdowns showing donation allocation between programs and overhead
- Online searches revealing negative terms such as "fraud," "scam," or "complaints" linked to the charity
Lack of detailed information or negative reviews should prompt caution.
Beware of Common Charity Scam Tactics
Be vigilant for these warning signs:
- Requests for donations via gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks.
- Websites missing "https" in their URLs, indicating unsecured data transmission.
- Pressure tactics demanding immediate donations to prevent you from considering the decision carefully.
- Claims that you have already pledged or donated when you have no recollection — always verify before proceeding.
Remember, scammers are sophisticated; even professional-looking websites and sincere-sounding appeals can mask deceitful intentions.
Why Protecting Your Business From Charity Scams Matters
Your business's charitable actions define your brand image. A donation to a fraudulent cause, or employees giving under your company's name unknowingly, can entangle your reputation in a fraud narrative.
Moreover, many tactics used in charity scams—such as urgency, impersonation, and fake websites—are the same ones targeting businesses through phishing, invoice fraud, and wire transfer scams. Educating your team to recognize fake fundraisers equips them to identify broader fraud schemes.
Protect Your Business and Its Goodwill With These Strategies
Follow these actionable steps to ensure your charitable giving is secure and effective:
- Create a Clear Donation Policy: Establish guidelines on how and where donations are made, including approval processes.
- Educate Employees: Train your team to identify and verify fundraisers before donating under your company's name.
- Use Verified Channels: Donate only through official charity websites, avoiding links sent via emails or social media.
- Ensure Transparency: If your business publicizes donations, confirm the legitimacy of the supported charities.
- Monitor Impact: Follow up to verify that donations are used as intended, leveraging charities' published impact reports.
Celebrate Holidays With Generosity, Not Risk
The holiday season is an opportunity to give back—don't let oversights lead to regret. Implementing smart checks and policies safeguards both your funds and your reputation.
Ready to empower your team to spot scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Contact us at (419) 522-4001 or click here to book your free 15-Minute Discovery Call today.
Because the most valuable gift you can offer your business and community is unwavering trust.
