November 17, 2025
Scammers lurk around acts of generosity all year, but during the holiday season—when donations surge and emotions run high—they strike with greater intensity.
In a shocking case a few years back, authorities dismantled a massive telefunding scam that had placed 1.3 billion fraudulent donation calls and fraudulently collected over $110 million from well-meaning donors. (Federal Trade Commission)
Additionally, Cornell University researchers revealed that more than 800 social media accounts were running donation scams, steering users toward illegitimate fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong move in charitable giving can cost more than money; it can entangle your brand in fraud, harm your reputation, and undermine trust among clients, partners, and your community.
Here's your guide to thoroughly vetting fundraisers, recognizing warning signs, and safeguarding your business and generosity this season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser should openly answer these key questions:
- Who is organizing this fundraiser and what is their relationship to the cause?
- Exactly how will the donations be used, and what is the timeframe?
- Who has control over withdrawal of funds? Is there a clear, traceable path for donations to reach the intended recipients?
- Do close associates of the beneficiary (family, friends) publicly support this campaign?
If any answers are vague, incomplete, or evasive, don't hesitate to ask for clarification. Silence or dodging questions is a strong warning sign.
Top Red Flags Indicating Possible Scams
If you encounter any of these signs, stop and investigate further:
- False or misleading information presented on the fundraiser's page.
- Delays or lack of transparency on how funds are used for the stated purpose.
- Someone impersonating another person or copying someone else's story.
- Stories that feel too perfect or are heavily emotional to the point of manipulation.
When multiple warning signs arise, report the fundraiser immediately and avoid donating.
How to Vet Charities Beyond Crowdfunded Fundraisers
Even well-known charities can have questionable practices. Watch for these indicators:
- Clear program explanations, transparent financial breakdowns, and readily available annual reports.
- Detailed information on how donations are split between programs and administrative costs.
- Search results including terms like "fraud," "scam," or "complaints" associated with the charity's name.
Missing details or negative feedback should raise your skepticism.
Common Deceptive Tactics Used by Charity Scammers
Be cautious of:
- Requests to donate through gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks.
- Websites lacking https:// (no "s" means your data isn't securely encrypted).
- Urgent demands to contribute immediately — scammers use pressure to prevent you from carefully considering your gift.
- Claims that you've already pledged or donated when you haven't — always double-check before paying.
Even professionally designed websites and convincing narratives can hide malicious intent.
Why This Matters for Your Business
Your business's charitable contributions—whether public or private—reflect directly on your brand's image. Associating with a fraudulent fundraiser, even unknowingly, can damage your credibility and invite reputational harm.
Moreover, fraudsters employ similar deceptive tactics—such as urgency, impersonation, and fake websites—not only in charity scams but also in targeting businesses through phishing, invoice fraud, and wire transfer schemes. Training your personnel to recognize fraudulent fundraisers doubles as wider fraud prevention education.
Protecting Your Company's Reputation and Generosity
Follow these best practices to ensure your donations are secure and effective:
- Create a Clear Donation Policy: Establish guidelines for where and how your business donates, including formal approval processes.
- Educate Employees: Train your team to recognize suspicious fundraisers and encourage verification before donating on your company's behalf.
- Donate Through Authorized Channels: Always use official charity websites instead of links received via email or social media.
- Maintain Transparency: If your business publicizes donations, ensure the organizations you support are reputable and verified.
- Monitor Donations: Follow up to confirm funds are allocated as promised; many charities issue impact reports for transparency.
Keeping Your Holiday Giving Generous and Secure
The holiday season is meant for sincere giving, not painful regrets. Implementing smart checks and solid policies will protect both your funds and your well-earned reputation.
Want your team to master spotting scams — from bogus fundraisers to phishing emails and fake payment requests?
Contact us at 801-356-9333 or click here to schedule your free 15-Minute Discovery Call today.
Remember, the finest gift your business and community can share is unshakeable trust.
