November 17, 2025
Scammers are constantly targeting generosity, especially during the holiday season when giving spikes and emotions run high.
In a striking case, a massive telefunding scam was uncovered after authorities revealed that the perpetrators made over 1.3 billion fraudulent donation calls, swindling more than $110 million from unsuspecting donors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University identified upwards of 800 social media accounts conducting donation scams, directing victims to fake fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, a single misjudgment in charitable contributions can lead to significant financial loss and tarnish your company's reputation, eroding trust among clients, partners, and the local community.
Here's your essential guide to vetting fundraisers, detecting warning signs, and safeguarding your business and goodwill during the giving season.
How To Properly Vet a Fundraiser Before You Donate
A trustworthy fundraiser will provide clear answers to these key questions:
- Who is organizing the fundraiser, and what relationship do they have with the beneficiary?
- How will the funds be allocated, and what is the timeline for their usage?
- Who controls the withdrawal of funds, and is there a verified process ensuring the money reaches its intended purpose?
- Do close contacts of the recipient—family or friends—publicly endorse the campaign?
If any answers are unclear or omitted, request further information immediately. Avoid silent or evasive responses—they're red flags.
Warning Signs That Could Indicate a Scam
Be cautious and investigate if you notice any of these:
- False or misleading content on the fundraiser's page
- Delays or misuse of funds not aligning with the fundraiser's stated objectives
- Impersonation of others or duplicated stories
- Overly polished or emotionally manipulative narratives
Spotting multiple red flags? Report the fundraiser immediately and refuse to donate.
How to Vet Established Charities, Beyond Crowdfunding
Even well-known charities can sometimes engage in questionable practices. Watch for:
- Detailed program descriptions, transparent financial reports, and annual disclosures
- Clear breakdowns showing the percentage of donations that directly support programs versus administrative costs
- Names flagged in online searches with terms like "fraud," "scam," or "complaints"
A lack of transparency or negative reviews should prompt caution.
Common Tactics Used by Charity Scammers
Be alert for these tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking "https" indicating insecure connections.
- High-pressure tactics urging you to donate immediately to bypass full consideration.
- Claims that you've already pledged or donated when you don't recall doing so—always verify before proceeding.
Scammers use sophisticated techniques; even professional-looking sites and convincing messages can be traps.
Why Protecting Your Business Matters
Your business's charitable activities become woven into your brand identity. Donations to scams, or unauthorized employee giving under your company's name, can severely damage your reputation.
Moreover, the tactics fraudsters employ in charity scams—urgency, impersonation, fake websites—are the very same methods used to target businesses with phishing, invoice fraud, and wire transfer scams. Teaching your team to recognize fake fundraisers equips them to defend against a wider spectrum of threats.
Steps to Safeguard Your Business and Your Generosity
Ensure your charitable giving is secure and strategic by following these guidelines:
- Create a Donation Policy: Establish clear rules for how and where your company donates, including required approvals.
- Educate Employees: Train your team to recognize fake fundraisers and to verify all donation requests made under your business name.
- Use Verified Channels: Always donate through official charity websites—not random email links or social media posts.
- Ensure Transparency: If you publicize donations, verify the legitimacy of the charities you support.
- Monitor Donations: Follow up to confirm funds are used as promised—many charities provide impact reports.
Make Your Holidays Secure and Generous
The holiday season is a time to give back, not to face regrets. Implementing smart policies safeguards your finances and your hard-earned reputation.
Need to empower your team to detect scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at (760) 266-5444 or click here to book your complimentary Discovery Call today.
Because the greatest gift you can offer your business and community is unshakable trust.
