November 17, 2025
Scammers are always lurking around acts of generosity, but the holiday season—when giving spikes and emotions run high—is when they become especially aggressive.
Take, for example, a major telefunding scam that was uncovered a few years ago. The fraudsters made an astonishing 1.3 billion deceptive donation calls, fraudulently collecting over $110 million from well-meaning donors. (Federal Trade Commission)
Meanwhile, researchers at Cornell University identified more than 800 social media accounts running donation scams, steering unsuspecting users to bogus fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, even a single misstep in charitable giving can mean more than financial loss—it can tie your reputation to fraud, damage trust among clients and partners, and harm your standing in the community.
Here's your essential guide to vetting fundraisers, spotting warning signals, and protecting both your business and your goodwill this holiday season.
How to Thoroughly Vet Fundraisers Before Donating
A trustworthy fundraiser will provide clear answers to these key questions:
- Who is behind the fundraiser, and how are they connected to the cause or recipient?
- Exactly how will donations be allocated, and over what timeline?
- Who manages the withdrawals, and how do funds ensure they reach their intended purpose?
- Are family or close friends of the beneficiary publicly endorsing the campaign?
If any answers seem unclear or missing, demand more information. Evasive or silent responses should raise immediate concerns.
Warning Signs That Might Indicate a Scam
Be cautious if you encounter any of these red flags:
- False or misleading content on the fundraiser's page
- Funds not being used promptly or for the stated objectives
- Impersonation of others or copied stories to invoke sympathy
- Emotionally manipulative or too-perfect narratives designed to pressure
If you notice multiple signs, report the fundraiser immediately and refrain from donating.
Evaluating Established Charities Beyond Crowdfunding
Even well-known charities might have questionable practices. Confirm these details before giving:
- Clear program descriptions, detailed financial reports, and annual transparency statements
- Information outlining what portion of donations directly supports programs versus administrative costs
- Search results for the charity's name that reveal any terms like "fraud," "scam," or "complaints"
Missing details or negative feedback should prompt thorough scrutiny.
Common Scammer Tactics in Charity Fraud
Be alert for these manipulative approaches:
- Requests to donate through gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking https (note the missing "s"), meaning your data isn't secure.
- Urgent pleas demanding immediate donations to prevent you from thinking carefully.
- Claims that you previously pledged or donated when you do not recall doing so—always confirm before paying.
Remember, scammers are sophisticated. Even sleek websites and convincing appeals can mask malicious intent.
Why Protecting Your Business from Charity Scams Matters
Every charitable act your company makes, whether public or private, reflects on your brand. A donation tangled in fraud—or an employee donating under your company's name without due diligence—can tarnish your business reputation.
Moreover, many tricks used in charity scams—like urgency, impersonation, and fake websites—are also deployed in broader business frauds such as phishing, invoice fraud, and wire scams. Educating your employees on recognizing fake fundraisers equips them to identify a wide range of threats.
Key Strategies to Safeguard Your Business and Generosity
Implement these best practices to keep your charitable giving secure and effective:
- Establish a Donation Policy: Clearly define how and where your company donates, plus approval limits.
- Raise Employee Awareness: Train your team to recognize fraudulent fundraisers and verify any donations under your company's name.
- Use Trusted Platforms: Always donate directly through verified charity websites—not via random email or social media links.
- Ensure Transparency: If your business publicly supports charities, verify the organization's credibility before posting endorsements.
- Monitor Donations: Follow up after donating to confirm funds were used as intended—many charities provide impact reports.
Make Your Holidays Meaningful, Not Risky
Holiday charity is about kindness and impact—not regret. Intelligent safeguards protect your donations and preserve the trust that your business has worked hard to build.
Want to empower your team to identify scams—whether it's a fake fundraiser, phishing email, or fraudulent payment request?
Contact us at (210) 582-5814 or click here to book your free Discovery Call today.
Because the greatest gift you can give your business and community is unwavering trust that no scam can steal.
