November 17, 2025
Scammers lurk around generosity all year, but they become especially aggressive during the holiday season, when giving spikes and emotions are heightened.
In one major crackdown, authorities uncovered a telefunding fraud scheme that made 1.3 billion deceptive donation calls and illicitly gathered over $110 million from well-meaning donors. (Federal Trade Commission)
Meanwhile, research from Cornell University revealed that on social media alone, more than 800 accounts ran donation scams, tricking victims into contributing to bogus fundraisers on platforms such as Facebook, X, and Instagram.
For small businesses, a simple error in charitable donations doesn't just cost money—it can link your company's name to fraud, tarnish your reputation, and undermine trust with clients, partners, and your community.
Learn how to thoroughly vet fundraisers, identify warning signs, and protect your business and its goodwill this giving season.
Essential Steps to Vet a Fundraiser Before Donating
Any legitimate fundraiser should provide clear answers to these questions:
- Who is the organizer and what is their relationship to the recipient?
- Exactly how will the donations be used, and within what timeframe?
- Who oversees fund withdrawals? Is there a transparent route ensuring funds reach their intended cause?
- Do close contacts of the recipient, like family or friends, publicly support this campaign?
If any answers are unclear or missing, ask for clarification immediately. Avoid fundraisers that respond evasively or remain silent.
Common Red Flags Indicating Donation Scams
If you encounter these signs, halt your contribution and investigate further:
- False or misleading details on the fundraiser's page
- Funds not being allocated to the stated cause within a reasonable period
- Impersonation of individuals or recycling someone else's story
- Claims that are too perfect or seem designed to emotionally manipulate
Spotting several of these warning signals should prompt you to report the fundraiser and refrain from donating.
How to Vet Established Charities (Beyond Crowdfunds)
Even well-known charities can have questionable practices. Here's what you need to check:
- Detailed program descriptions, clear financial reports, and accessible annual disclosures
- Explicit breakdowns showing the percentage of donations used for programs versus administrative costs
- Online searches linking the charity's name to keywords like "fraud," "scam," or "complaints"
Incomplete information or negative feedback should urge you to proceed cautiously.
Watch Out For These Frequent Charity Scam Tactics
Be suspicious if you encounter:
- Requests to donate via gift cards, wire transfers, or cryptocurrencies—legitimate organizations typically accept credit cards or checks.
- Websites lacking https security (check for the "s" in the URL)—which means data isn't safely encrypted.
- Pressure to contribute immediately—this urgency is a common manipulation to prevent careful thought.
- Claims that you've already pledged or donated when you don't recall—always verify before sending money.
Scammers can be very sophisticated. Polished websites and convincing headlines often mask malicious intent.
Why Protecting Your Business Matters
Every charitable donation your business makes—whether public or private—becomes part of your brand's identity. Donating to a scam, or an employee donating on behalf of your company without proper checks, can embroil your business in a fraud controversy.
Moreover, the fraudulent techniques used in charity scams—urgency, impersonation, fake websites—mirror those found in phishing, invoice scams, and wire transfer frauds targeting businesses. Training your staff to recognize fake fundraisers strengthens your entire fraud prevention strategy.
How to Secure Your Business and Its Reputation This Holiday Season
Implement these best practices to keep your donations safe and smart:
- Establish a Donation Policy: Clearly define your company's donation process, including approval limits and authorized channels.
- Educate Employees: Train your team to recognize fake fundraisers and verify requests before making donations in the company's name.
- Use Trusted Donation Platforms: Make contributions only through verified charity websites, avoiding random email or social media links.
- Ensure Transparency: If your business publicly announces donations, confirm the legitimacy of the supported charities.
- Monitor Outcomes: Follow up to verify that donations are used as intended; many charities share impact reports.
Make This Holiday Season Generous and Risk-Free
The holidays offer a valuable opportunity to give back without experiencing regret later. Implementing smart verification steps and solid policies protects both your finances and your business reputation.
Want to empower your team to identify scams—from fake fundraisers and phishing emails to fraudulent payment requests?
Call us at 252-240-3399 or click here to schedule your free 15-Minute Discovery Call today.
Because the greatest gift you can give your business and community is unwavering trust.
