November 17, 2025
Scammers are persistent hunters, especially during the holidays when generosity soars and emotions run deep.
Consider this: a few years back, a major telefunding scam was dismantled after authorities revealed 1.3 billion deceptive donation calls had been made, netting over $110 million from trusting donors. (Federal Trade Commission)
Similarly, researchers at Cornell University uncovered over 800 social media accounts running donation scams, directing victims to fake fundraising campaigns on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can cost more than just money—it can link your brand to fraud, harm your reputation, and weaken trust with customers, partners, and your community.
Here's your guide to vetting fundraisers, identifying warning signs, and safeguarding both your business and generosity this holiday season.
Steps To Authenticate A Fundraiser Before Donating
An honest fundraiser will clearly address these questions:
- Who is running this campaign, and what is their relationship to the recipient?
- What is the exact use for the funds, and what timeline is planned for their deployment?
- Who manages the distribution of funds, and is there a transparent process ensuring donations reach their intended target?
- Do trusted individuals close to the recipient—such as family or friends—publicly endorse the fundraiser?
If any answers are unclear or omitted, request further details. Avoid fundraisers that respond with silence or evasiveness—these signal risk.
Alert Signs That Could Indicate Fraudulent Fundraisers
Be cautious and investigate if you notice:
- False or misleading information presented on the fundraiser's page
- Delays or misuse of funds, not aligning with the stated purpose
- Impersonation of individuals or copied stories without verification
- Emotionally manipulative narratives that seem excessively perfect or designed to exploit sympathy
Spotting several red flags means you should report the fundraiser and refrain from donating.
Evaluating Established Charities Beyond Crowdfunds
Even reputable charities can have questionable practices. Ensure they demonstrate:
- Clear descriptions of programs, thorough financial disclosures, and annual reports
- Details on how much of each donation is allocated to programs versus administrative costs
- Search results free from terms like "fraud," "scam," or "complaints" linked to the charity's name
Insufficient transparency or negative feedback is cause for concern.
Common Schemes Used By Charity Scammers
Keep an eye out for:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate charities predominantly accept credit cards or checks.
- Websites lacking "https" in their URL, indicating insecure data transmission.
- High-pressure tactics urging immediate donation—this rush is meant to bypass your judgment.
- Claims that you have already pledged or contributed without your recollection—always confirm before sending money.
Cunning scammers can present polished websites and convincing messages, masking their malicious motives.
Why Protecting Your Business From Charity Scams Matters
Your company's charitable actions—whether public or private—become part of your brand's identity. Associating with a scam, even inadvertently, can pull your reputation into negative stories.
Moreover, tactics fraudsters employ in charity scams—such as impersonation, urgent demands, and fake websites—are also used to target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to recognize fake fundraisers strengthens their ability to identify all types of fraud.
Practical Steps To Safeguard Your Business And Charitable Reputation
Follow these essentials to keep your donations secure and meaningful:
- Establish a Donation Policy: Define clear guidelines for donations and approval limits within your company.
- Educate Employees: Inform your team about fake fundraisers and encourage double-checking before donating on the company's behalf.
- Use Verified Channels: Make contributions through official charity websites, avoiding links from unsolicited emails or social media posts.
- Maintain Transparency: If your business publicly shares its charitable contributions, ensure the supported organizations are legitimate.
- Monitor Donations: Follow up to confirm funds are used appropriately—many charities offer impact reports.
Make Your Holidays Generous Yet Secure
The holiday season should inspire giving without worry. Applying smart safeguards protects your financial gifts and your company's integrity.
Want your team to master identifying scams—be it fake fundraisers, phishing emails, or fraudulent payment requests?
Contact us at (336) 443-0061 or click here to book your free 15-Minute Discovery Call today.
Because the greatest gift to your business and community is unbreakable trust.
