November 17, 2025
Scammers are always lurking around acts of generosity, but during the holiday season, when generosity peaks and emotions are heightened, they strike with greater intensity.
Recently, a large-scale telefunding scam was dismantled after authorities revealed the perpetrators made 1.3 billion fraudulent donation calls and extracted over $110 million from unsuspecting donors. (Federal Trade Commission)
Meanwhile, researchers from Cornell University identified more than 800 social media accounts running donation scams, steering victims to fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can inflict more than financial loss — it may tie your business's name to fraud, damage your reputation, and erode trust among customers, partners, and your community.
Here's your essential guide to vetting fundraisers, recognizing warning signs, and protecting your business and goodwill throughout the season.
Mastering Fundraiser Vetting Before You Donate
Legitimate fundraisers will transparently address these questions:
- Who is behind this fundraiser, and what is their relationship to the cause or recipient?
- How exactly will the donations be allocated and over what timeframe?
- Who manages the withdrawals, and can you clearly trace where the funds go?
- Are close contacts of the recipient, such as family or friends, publicly backing the campaign?
If any details are unclear or missing, request clarification. Silence or evasiveness should raise suspicion.
Spotting Red Flags That Signal Scams
Be cautious and research further if you encounter:
- Misleading or blatantly false claims on the fundraiser's page
- Delays or failure in using funds for the stated purpose within a reasonable timeline
- Impersonation of individuals or plagiarized stories
- Emotionally charged stories that seem too perfect or manipulative
Multiple warning signs should prompt you to report the fundraiser and refrain from donating.
Due Diligence for Charities (Beyond Crowdfunding)
Even reputable charities can sometimes raise concerns. Prioritize these checks:
- Clear descriptions of programs, transparent financial reports, and up-to-date annual disclosures
- Information revealing the percentage of donations directed to programs versus administrative costs
- Search for any mentions of "fraud," "scam," or "complaints" linked to the charity's name
Lack of transparency or negative feedback should encourage caution.
Common Scam Strategies in Charity Fraud
Be alert to tactics such as:
- Requests for donations via gift cards, wire transfers, or cryptocurrency — legitimate charities usually accept credit cards or checks.
- Non-secure websites lacking https (ensure the URL starts with "https" indicating secure data transmission).
- Urgent demands to donate immediately, designed to prevent careful thought.
- Claims that you already pledged or donated when you do not recall doing so — always verify before giving.
Remember, scammers can create professional-looking websites and convincing stories that hide malicious intent.
Why This Matters to Your Business
When your business donates to charity, whether publicly or privately, your generosity becomes part of your brand identity. A donation made to a scam, or an employee donating under your company's name unknowingly, can entangle your business in a fraud scandal.
Moreover, the same tactics used in charity scams — urgency, impersonation, fake websites — are frequently employed against businesses in phishing, invoice fraud, and wire transfer scams. Training your staff to detect fake fundraisers equips them to recognize fraud patterns across multiple threats.
Steps to Safeguard Your Business and Its Reputation
Implement the following best practices to ensure your charitable contributions are secure and thoughtful:
- Establish a Donation Policy: Clearly define your business's donation process, including where to give and approval thresholds.
- Educate Your Employees: Equip your team with knowledge about fake fundraisers and encourage verification before donating on behalf of the company.
- Utilize Trusted Donation Channels: Donate only through official charity websites, avoiding links from unsolicited emails or social media.
- Maintain Transparency: If your business publicizes charitable support, verify the authenticity and reputation of the receiving charity.
- Monitor Donations: Follow up on donations to confirm funds are utilized as intended; many charities provide impact reports.
Ensure Your Holidays Are Generous and Risk-Free
The holiday season is an opportunity for meaningful giving — not regret. By applying prudent checks and policies, you protect your financial contributions and your business's valued reputation.
Want your team to confidently identify these scams — from fake fundraisers to phishing emails and fraudulent payment requests?
Contact us at 816-233-3777 or click here to book your free 15-Minute Discovery Call today.
Because the best gift you can give your business and community is unshakable trust.
