November 17, 2025
Scammers thrive on generosity throughout the year, but the holiday season—when giving is at its peak and emotions run high—is their prime opportunity to deceive.
Consider a major telefunding scam uncovered a few years ago, where criminals placed an astonishing 1.3 billion fraudulent donation calls and defrauded donors out of more than $110 million (Federal Trade Commission).
At the same time, researchers at Cornell University exposed over 800 social media accounts operating fake donation schemes across platforms like Facebook, X, and Instagram, leading unsuspecting victims to fraudulent fundraisers.
For small businesses, falling victim to even one improper charitable donation can mean more than a financial loss—it risks tainting your brand, damaging your reputation, and breaking trust with your clients, partners, and community.
Here's your essential guide to vetting fundraisers, spotting scam warning signs, and safeguarding both your business and goodwill throughout the season.
How to Thoroughly Vet a Fundraiser Before Donating
A trustworthy fundraiser will provide clear answers to these key questions:
- Who is organizing it, and what is their relationship to the cause or recipient?
- Precisely how will the donated funds be used, and what is the timeline for disbursement?
- Who has control over withdrawing the funds? Is the transfer path transparent and secure?
- Do close associates of the beneficiary—family or friends—publicly endorse this campaign?
If any details are unclear or missing, request further clarification. Evasive responses or silence are strong indicators of a potential scam.
Watch Out for These Common Scam Red Flags
If you encounter any of these signs, pause and investigate before donating:
- False or misleading claims on the fundraiser's page.
- Funds not being used promptly or for the stated purpose.
- Impersonating someone else or recycling another person's story.
- Stories that seem overly perfect or designed to overly manipulate emotions.
Spot multiple warning signs? Report the fundraiser immediately and avoid donating.
Screening Charities Beyond Crowdfunding
Even well-known charities can sometimes exhibit suspicious behavior. When evaluating them, consider the following:
- Transparent descriptions of programs, detailed financial reports, and up-to-date annual disclosures.
- Clear breakdowns showing donation allocation between programs and administrative costs.
- Online search results that flag the charity name alongside keywords like "fraud," "scam," or "complaints".
Lack of transparency or negative feedback should immediately raise concerns.
Typical Tactics Used by Charity Scammers
Be alert for these common tricks:
- Requests for donations via gift cards, wire transfers, or cryptocurrency—legitimate charities usually accept credit cards or checks.
- Fundraiser websites without secure https connections (look for the "s" in the URL).
- High-pressure tactics urging you to donate immediately, designed to prevent careful thought.
- False claims that you've previously pledged or donated, prompting you to pay again—always verify before proceeding.
Remember, some fraudulent sites look highly professional. Always remain vigilant against deceptive appearances.
Why Protecting Your Business Matters
When your business donates—whether publicly announced or privately—your generosity shapes your brand image. Donating to a scam or having employees give under your business name without due diligence can pull your brand into negative associations.
Additionally, the methods scammers use in charity fraud—such as impersonation and fake websites—overlap with tactics used in phishing, invoice fraud, and wire transfer scams. Training your team to identify fake fundraisers empowers them to recognize a broad range of threats.
Practical Steps to Protect Your Business and Your Generosity
Ensure your charitable giving is both secure and strategic with these best practices:
- Establish a Clear Donation Policy: Define where and how your company donates, and set guidelines for approvals.
- Educate Your Employees: Train your team to identify fake fundraisers and verify causes before donating on your company's behalf.
- Use Verified Channels: Always donate directly via official charity websites—not through suspicious links from emails or social media.
- Maintain Transparency: If your business publicizes donations, confirm the credibility of the supported charities.
- Monitor Donations Post-Giving: Follow up to ensure funds are used as promised. Many charities issue impact reports you can review.
Keep Your Holiday Giving Secure and Impactful
The holiday season should be a time of genuine generosity, free from regret or fraud. By implementing smart safeguards and policies, you protect both your funds and the priceless trust your business has built.
Want your team to master how to spot scams—whether they're fake fundraisers, phishing attempts, or fraudulent payment requests?
Contact us at (646) 989-9900 or click here to book your free Business Technology Alignment Assessment today.
Because the greatest gift to your business and community is the unshakable trust that scams can never steal.
