November 17, 2025
Even in stable times, scammers relentlessly target generosity. But around the holiday season, when giving surges and emotions intensify, they strike with greater ferocity.
Several years ago, authorities dismantled a massive telefunding scam after uncovering that fraudsters had placed an astonishing 1.3 billion deceptive donation calls, successfully extracting over $110 million from trusting donors. (Federal Trade Commission)
Meanwhile, a Cornell University study revealed that on social media alone, more than 800 fraudulent accounts exploited donation campaigns, steering victims toward bogus fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong move in charitable contributions can cost more than money—it can link your brand to fraud, tarnish your reputation, and erode the trust of clients, partners, and your community.
Discover how to critically evaluate fundraisers, identify warning signs, and safeguard both your company and goodwill during this giving season.
Essential Steps to Vet a Fundraiser Before Donating
A credible fundraiser will provide clear answers to these questions:
- Who is behind this fundraiser, and what is their relationship to the beneficiary?
- How exactly will the donated funds be allocated, and over what period?
- Who manages the withdrawal of funds? Is there a transparent process ensuring the money reaches its intended cause?
- Are close associates (family, friends) of the recipient publicly endorsing the campaign?
If any of these details are unclear or missing, request further information promptly. Avoid fundraisers that respond with silence or evasiveness.
Warning Signals That Often Indicate Scams
If you encounter any of the following, pause and investigate thoroughly:
- False or deceptive information presented on the fundraiser page
- Funds not being utilized for the declared purpose within a reasonable timeframe
- Impersonation of others or replication of unrelated personal stories
- Overly polished or emotionally manipulative narratives designed to exploit
Spotting multiple red flags should prompt you to report the fundraiser and refrain from donating.
How to Carefully Vet Established Charities (Beyond Crowdfunding)
Even well-known charities can harbor questionable practices. Watch for:
- Clearly detailed program descriptions, transparent financial reports, and annual statements
- Information revealing what portion of donations funds programs versus overhead costs
- Search results associating the charity's name with "fraud," "scam," or "complaints"
Insufficient details or negative feedback should trigger caution.
Common Scam Techniques Used in Charity Fraud
Stay 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 security (watch for the "s" at the end) indicating insecure data handling.
- Pressure to donate immediately—manufactured urgency is designed to cloud judgment.
- Claims that you have previously pledged or donated without your recollection—always verify before paying.
Beware: even slick websites and convincing headlines can mask malicious schemes.
The Importance of Vigilance for Your Business
Your company's charitable giving—whether public or private—reflects on your brand identity. Donations tied to scams, or employee contributions made in your company's name without consent, can drag your brand into fraud controversies.
Furthermore, the same deceptive techniques used by charity scammers—urgency, impersonation, fake websites—also target businesses directly. Recognizing fraudulent fundraisers helps your team detect broader fraud threats such as phishing, invoice scams, and fraudulent wire transfers.
Steps to Safeguard Your Business and Preserve Goodwill
Implement these strategies to keep your giving secure and wise:
- Establish a Donation Policy: Define specific guidelines for where and how your company donates, including clear approval limits.
- Educate Employees: Train your staff to recognize fraudulent fundraisers, encouraging verification before donating on behalf of the company.
- Use Verified Channels: Always give through official charity websites, avoiding unfamiliar links in emails or social media.
- Maintain Transparency: When publicly sharing your charitable efforts, thoroughly vet the charities you endorse.
- Monitor Donations: Follow up post-donation to confirm that funds are applied as promised; many charities publish impact reports for verification.
Enjoy a Season of Generosity Without Risk
The holiday season offers a wonderful chance to give back responsibly. Adopting smart checks and policies shields your finances and your company's reputation from harm.
Want to empower your team to confidently identify scams—from fraudulent fundraisers to phishing emails and bogus payment requests?
Contact us at 404-719-5222 or click here to book your free 15-Minute Discovery Call today.
The greatest gift to your business and community is cultivating trust that's unshakeable.
