November 17, 2025
Scammers eagerly circle around generosity, even when times are good. However, during the holiday season—when the spirit of giving soars and emotions run strong—they strike hardest.
Consider this: a few years back, authorities dismantled a massive telefunding scam responsible for 1.3 billion fraudulent donation calls, defrauding over $110 million from unsuspecting donors. (Federal Trade Commission)
Additionally, researchers at Cornell University uncovered more than 800 social media accounts running donation scams, duping victims via fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving risks more than just financial loss—it can unfairly associate your business name with fraud, harm your reputation, and erode the trust of clients, partners, and your wider community.
To protect your business and your goodwill this season, learn how to thoroughly vet fundraisers, recognize warning signs, and donate confidently.
How To Thoroughly Vet A Fundraiser Before Donating
A trustworthy fundraiser should readily provide clear answers to these critical questions:
- Who is organizing this fundraiser, and what relationship do they have to the cause or recipient?
- Specifically, how will the money be used and over what period?
- Who manages access to the funds, and is there an accountable system ensuring they reach the intended recipient?
- Do close family or friends of the recipient publicly endorse or support the fundraiser?
If any of these answers are unclear or missing, ask for more details before donating. Avoid silence or evasive responses—those are strong red flags.
Warning Signs That May Indicate a Scam
Be cautious and pause to verify if you notice any of the following:
- False or deceptive content displayed on the fundraiser's page.
- Funds not being allocated to the stated cause within a reasonable timeframe.
- Claims that imitate another person's story or outright impersonation.
- Stories that seem overly perfect or aim to manipulate emotions excessively.
If multiple red flags emerge, report the fundraiser immediately and avoid donating.
How to Vet Established Charities, Not Just Crowdfunds
Even well-known charities deserve scrutiny. Look for these key indicators:
- Clear, detailed program descriptions, financial disclosures, and annual reports.
- Transparent breakdown of how much of each donation goes directly to programs versus overhead.
- Search for the charity's name alongside terms like "fraud," "scam," or "complaints" before donating.
Absence of transparency or negative reviews should raise caution.
Common Techniques Used By Charity Scammers
Watch for these tactics to avoid falling victim:
- Requests to donate through gift cards, wire transfers, or cryptocurrency — remember, legitimate charities accept credit cards or checks.
- Fundraiser websites that lack a secure connection — look for "https" in the URL.
- Urgent pressure to donate immediately, which aims to prevent you from thinking thoroughly before giving.
- Claims that you already pledged or donated without your recollection — always verify your records before contributing.
Be aware: scammers often create sophisticated websites and persuasive stories to conceal their malicious intentions.
Why This Matters for Your Business
Your business's charitable giving—whether public or private—reflects your brand identity. A donation connected to a scam or an employee giving under your company's name can tarnish your brand's integrity.
Moreover, the deceitful tactics used in charity scams, such as impersonation and fake urgency, closely resemble phishing, invoice fraud, and wire transfer scams that specifically target businesses. Equipping your team with the skills to identify fake fundraisers strengthens your overall fraud defense.
Essential Steps to Safeguard Your Business and Reputation
Follow these actionable tips to protect your donations and your company's goodwill:
- Establish a Donation Policy: Clearly define donation protocols and approval thresholds within your business.
- Raise Employee Awareness: Train your staff to recognize fake fundraisers and verify requests before donating on behalf of your company.
- Stick to Trusted Channels: Make donations only through verified charity websites—avoid links received via unsolicited emails or social media.
- Maintain Transparency: If your business publicizes donations, ensure you verify the legitimacy of supported charities.
- Monitor Post-Donation Impact: Follow up on how funds are used, as many charities publish detailed impact reports.
Keep Your Holiday Giving Generous but Secure
The holiday season is an opportunity to express generosity—not to suffer regrets. Implementing smart verification steps and clear policies shields both your finances and your hard-earned reputation.
If you want your team to master the skills needed to identify fake fundraisers, phishing emails, and fraudulent payment attempts, we can help.
Contact us at (573) 334-4439 or click here to schedule your free No-Obligation Conversation today.
Because the most valuable gift your business and community can receive is unwavering trust.
