November 17, 2025
Scammers are always lurking around generosity, especially during the holiday season when donations surge and emotions run high.
Not long ago, authorities uncovered a large telefunding fraud involving an astonishing 1.3 billion deceptive donation calls which scammed over $110 million from unsuspecting donors (Federal Trade Commission).
Additionally, researchers at Cornell University revealed that over 800 fraudulent social media accounts have been promoting fake fundraisers on platforms like Facebook, X, and Instagram to trick victims.
For small businesses, a single mistake in charitable giving can cost more than money — it risks associating your brand with fraud, harming your reputation and breaking trust with clients, partners, and your community.
Here's your essential guide to thoroughly vetting fundraisers, identifying warning signs, and protecting your business and goodwill this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser can clearly answer these key questions:
- Who is organizing this fundraiser and how are they connected to the beneficiary?
- How will the donations be specifically used, and what is the timeline for their use?
- Who manages the withdrawal of funds, and is there a transparent method ensuring funds reach their intended destination?
- Are close contacts like family or friends publicly endorsing this campaign?
If any answers seem vague or missing, ask for clarification immediately. Avoid fundraisers that respond with silence or evasiveness—these are major red flags.
Warning Signs That Indicate Potential Scams
Be cautious and investigate if you notice:
- Deceptive or blatantly false claims on the fundraiser page.
- Donations not being used for the stated purpose within a reasonable timeframe.
- Impersonation of individuals or copying authentic stories.
- Appeals that seem too perfect or emotionally manipulative.
If multiple red flags appear, report the fundraiser right away and avoid donating.
How to Evaluate Legitimate Charities
Even well-known charities can sometimes have questionable practices. Watch for:
- Clear program descriptions, detailed financial reports, and annual disclosures.
- Transparent breakdowns showing how much of your donation goes to programs versus overhead.
- Search results that reveal negative mentions like "fraud," "scam," or "complaints" associated with the charity's name.
Missing details or bad reviews should raise caution before proceeding.
Common Tricks Used by Charity Scammers
Be alert to these tactics:
- Requests for payment via gift cards, wire transfers, or cryptocurrency instead of credit cards or checks, which legitimate charities accept.
- Fundraiser websites without "https", indicating an insecure connection.
- Urgent pressure to donate immediately, a ploy to bypass your careful consideration.
- Claims that you already pledged or donated, even if you don't recall—always verify before paying.
Remember, even sleek websites and professional headlines can mask fraudulent intent.
Why Protecting Your Business Matters
Your business's charitable donations—public or private—are part of your company's public image. Donating to a scam or employees contributing under your company's name without approval can entangle your brand in fraud allegations.
Moreover, the deceptive tactics used in charity scams—urgency, impersonation, fake websites—also target businesses through phishing, invoice scams, and wire fraud. Training your team to recognize fake fundraisers empowers them to spot fraudulent activities across all fronts.
Strong Strategies to Safeguard Your Business and Reputation
Implement these best practices to secure your charitable giving:
- Create a Clear Donation Policy: Establish guidelines on where and how your company donates, including approval processes.
- Educate Your Team: Teach employees to recognize fake fundraisers and verify legitimacy before donating through your business.
- Donate Through Trusted Channels: Use official charity websites rather than random email or social media links.
- Maintain Transparency: If your business publicizes donations, verify the charities you endorse to protect your reputation.
- Monitor Donations: Follow up to ensure funds are used responsibly, as many charities publish impact reports.
Keep Your Holiday Giving Generous and Secure
The holiday season is perfect for sharing generosity—not regret. By applying smart safeguards and clear policies, you protect your funds and your reputation.
Want your team to confidently identify scams—whether they're fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at 907-865-3100 or click here to book your free Discovery Call today.
Because the greatest gift you can give your business and community is unshakable trust.
