November 17, 2025
Scammers often prey on generosity, but during the holiday season, when giving is at its peak and emotions are heightened, the risk escalates significantly.
Just a few years ago, authorities dismantled a vast telefunding scam that executed 1.3 billion fraudulent donation calls and bilked more than $110 million from trusting donors. (Federal Trade Commission)
Meanwhile, Cornell University researchers revealed that over 800 social media accounts run donation scams, misleading victims with fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can cost more than money—it can link your brand to fraud, tarnish your reputation, and weaken trust among clients, partners, and your community.
Learn how to thoroughly evaluate fundraisers, recognize warning signals, and safeguard your business and its goodwill this holiday season.
Steps to Vet a Fundraiser Before Donating
Trustworthy fundraisers will provide clear answers to these questions:
- Who is organizing the fundraiser, and what is their relationship to the beneficiary?
- What is the exact purpose of the funds, and what is the timeline for their use?
- Who manages the fund withdrawals? Is there a transparent method ensuring the funds reach the intended recipients?
- Do close associates of the recipient (family or friends) openly endorse the campaign?
If any information seems unclear or missing, request clarification. Avoid fundraisers that respond with silence or vague answers—these are major red flags.
Warning Signs of Potential Scams
Be cautious and investigate if you encounter any of the following:
- False or misleading claims on the fundraiser's page.
- Funds not being used promptly for the stated cause.
- Impersonation of individuals or copying of someone else's story.
- Stories that appear overly perfect or excessively emotional to manipulate donors.
When multiple warning signs emerge, report the fundraiser and withhold donations.
How to Vet Established Charities
Even long-standing charities may have questionable practices. Watch for:
- Detailed program explanations, transparent financial disclosures, and accessible annual reports.
- Clear breakdowns showing the proportion of donations spent on programs versus administrative costs.
- Search results linking the charity's name with terms like "fraud," "scam," or "complaints."
Lack of transparency or negative feedback should prompt additional caution.
Common Manipulation Techniques Used by Charity Scammers
Be vigilant against these tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites that lack HTTPS security (look for the padlock icon and "https" in the URL), indicating unsafe data handling.
- Pressure to donate immediately—creating urgency to prevent you from carefully considering your decision.
- Claims that you've already pledged or donated without your recollection—always verify before giving.
Scammers can be sophisticated; even professional-looking sites and convincing headlines may hide deceitful schemes.
Why Protecting Your Business Matters
Your business's charitable efforts—whether public or private—reflect directly on your brand. Donating to scams, or having employees give through your business without oversight, can entangle your brand in fraudulent activities.
Moreover, the scam techniques used in fake charity solicitations—such as urgency, impersonation, and fake websites—mirror those deployed in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to identify fraudulent fundraisers helps them recognize and prevent broader types of fraud.
Protecting Your Business and Preserving Goodwill
Implement these measures to ensure your charitable giving remains safe and effective:
- Draft a Clear Donation Policy: Establish how and where your company donates, and set approval limits.
- Raise Employee Awareness: Train your staff to recognize fake fundraisers and encourage verification before donating in the company's name.
- Use Verified Donation Channels: Contribute directly through official charity websites instead of suspicious email links or social media posts.
- Maintain Transparency: When your business publicizes its donations, verify the legitimacy of these charities.
- Regularly Monitor Donations: Follow up after donating to confirm funds are applied as intended—many charities publish detailed impact reports.
Keep Your Holiday Giving Generous and Secure
Holidays are a perfect time to give back without the burden of regret. Smart verification and solid policies protect both your money and your brand reputation.
Ensure your team is equipped to spot scams—whether fake fundraisers, phishing attempts, or fraudulent payment demands.
Contact us at (502) 473-9330 or click here to book your complimentary 15-Minute Discovery Call today.
Remember, the most valuable gift to your business and community is trust that can never be stolen.
