November 17, 2025
Scammers lurk around acts of generosity year-round, but during the holiday season—when giving is at its peak and emotions intensify—they become especially aggressive.
Consider this: A few years ago, authorities dismantled a huge telefunding scam after uncovering 1.3 billion deceptive donation calls that netted over $110 million from unsuspecting donors (Federal Trade Commission).
Simultaneously, researchers at Cornell University revealed that on social media alone, over 800 fraudulent accounts ran donation scams, directing victims to bogus fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving can have consequences beyond financial loss—it can link your brand to fraud, tarnish your reputation, and erode the trust of clients, partners, and your community.
Here's your essential guide to thoroughly vetting fundraisers, identifying warning signs, and safeguarding both your business and goodwill this holiday season.
Essential Steps To Vet A Fundraiser Before Donating
A trustworthy fundraiser should provide clear answers to these questions:
- Who is organizing the campaign, and what is their relationship to the beneficiary?
- How will donations be used specifically, and what is the timeline for fund utilization?
- Who manages the funds' withdrawal? Is there a transparent process ensuring the money reaches its intended use?
- Do close acquaintances of the recipient, such as family or friends, openly endorse the campaign?
If any answers are vague, incomplete, or evasive, request clarification. Silence or avoidance is a major red flag.
Warning Signs That Could Mean A Scam
Be cautious and investigate if you notice any of the following:
- False or misleading information prominently displayed on the fundraiser page.
- Funds not being used for their declared purpose within a reasonable period.
- Impersonating someone else or copying personal stories to deceive.
- Stories that feel overly perfect or manipulate emotions excessively to elicit donations.
If multiple warning signs appear, report the fundraiser and refrain from donating.
How To Vet Registered Charities, Not Just Crowdfunds
Even reputable charities can have questionable practices. Look for these indicators:
- Clear program descriptions, detailed financial reports, and annual transparency statements.
- Information on the percentage of donations going toward programs versus overhead costs.
- Search the charity's name along with terms like "fraud," "scam," or "complaints" to uncover any negative reports.
Missing details or poor reviews should prompt caution before donating.
Common Scammer Tactics To Watch For
Be alert for these signs of fraudulent fundraising:
- Requests for donations via gift cards, wire transfers, or cryptocurrency. Legitimate charities typically accept credit cards or checks.
- Fundraiser websites lacking HTTPS security (look for the "s" in the URL), indicating insecure data transmission.
- High-pressure tactics urging you to donate immediately to prevent you from considering carefully.
- Claims that you've already pledged or donated without your recollection—always verify before proceeding.
Remember, scammers are sophisticated. Even professionally designed sites and compelling headlines can conceal malicious intent.
Why Protecting Your Business Matters
When your business contributes to charity—publicly or privately—that generosity becomes part of your brand's identity. Donating to scams, or employees contributing under your company's name without oversight, can entangle your brand in fraud allegations.
Moreover, the tactics used in charity scams—urgency, impersonation, fraudulent websites—are often the same methods used against businesses in phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers equips them to recognize a wide range of fraudulent schemes.
Steps To Safeguard Your Business And Its Goodwill
Follow these best practices to ensure your donations are secure and strategic:
- Establish A Clear Donation Policy: Define where and how your company donates, and set approval limits to control charitable spending.
- Educate Employees: Train your team to recognize fake fundraisers and encourage verification before donating on behalf of your business.
- Use Official Channels: Always donate through verified charity websites—not random email or social media links.
- Maintain Transparency: When publicizing your donations, confirm the legitimacy of the charities you support.
- Monitor Usage: After donating, track how funds are used—many charities provide impact reports for accountability.
Make Your Holidays Meaningful And Secure
The holiday season is the perfect time to give back—but it shouldn't be a season for regret. Smart verification and thoughtful policies protect your investments and your company's reputation.
Want your team to master identifying scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Contact us at (925) 766-4005 or click here to book your free 15-Minute Discovery Call today.
Because the greatest gift you can offer your business and community is unwavering trust.
