November 17, 2025
Scammers lurk around generosity all year, but the holiday season — when donations soar and emotions run deep — becomes prime hunting ground.
Not long ago, a huge telefunding scam was dismantled after officials uncovered 1.3 billion fraudulent donation calls that deceitfully gathered more than $110 million from well-meaning donors. (Federal Trade Commission)
Meanwhile, Cornell University researchers identified over 800 social media accounts orchestrating donation cons across platforms like Facebook, X, and Instagram, steering victims toward bogus fundraisers.
For small businesses, a single poor charitable giving decision can cost more than just money — it can tarnish your brand, undermine reputation, and erode trust with clients, partners, and your broader community.
Discover how to thoroughly vet fundraisers, recognize warning signs, and safeguard your business and generosity this holiday season.
Essential Steps to Vet a Fundraiser Before Donating
A trustworthy fundraiser will clearly address these critical questions:
- Who is behind the fundraiser, and what is their relationship to those benefiting?
- Precisely how will the funds be allocated, and what is the expected timeline?
- Who manages withdrawals? Is there transparency confirming the funds reach their intended recipients?
- Do close associates—family or friends—publicly endorse the campaign?
If any answers seem unclear or are missing, request details immediately. Avoid fundraisers that respond with silence or evasiveness, as these are major red flags.
Warning Signs That Often Indicate Scams
Halt and scrutinize if you notice:
- False or misleading details on the fundraising page
- Delays or discrepancies in using funds for the stated cause
- Someone impersonating others or plagiarizing personal stories
- Fundraising narratives that feel overly polished, too perfect, or emotionally manipulative
Encounter multiple such issues? Report the fundraiser and refrain from donating.
How to Scrutinize Established Charities
Even well-known charities may hide suspicious activities. Watch for these signs:
- Clear, detailed program overviews, financial statements, and annual reports
- Disclosure on what percentage of donations fund programs vs. administrative costs
- Negative search results associating the charity with terms like "fraud," "scam," or "complaints"
Absence of transparency or unfavorable reviews should raise concerns.
Common Tricks Employed by Charity Scammers
Be vigilant if you encounter:
- Requests to donate using gift cards, wire transfers, or cryptocurrency — authentic charities typically accept credit cards or checks.
- Websites lacking https security (note the missing "s"), indicating unsafe data handling.
- Urgent demands to contribute immediately — a tactic designed to inhibit your judgment.
- Claims that you previously pledged or donated when you don't recall doing so — always verify before sending funds.
Remember, scammers are cunning. Professional-looking websites and well-crafted appeals don't always guarantee legitimacy.
Why These Precautions Matter to Your Business
Your business's generosity, whether public or private, becomes a reflection of your brand. Falling victim to or inadvertently supporting scams can entangle your company's name in fraudulent schemes.
Even more, tactics used in charity cons—urgency, impersonation, fake websites—mirror those in phishing, fake invoices, and wire transfer fraud. Equipping your team to recognize bogus fundraisers also trains them to defend against broader cyber threats.
Protecting Your Business and Its Generosity
Follow these strategies to keep gifts secure and strategic:
- Establish a Corporate Donation Policy: Clearly define donation practices and approval limits to maintain control.
- Educate Your Employees: Train staff to detect fraudulent fundraisers and verify all giving under your business name.
- Use Reliable Donation Channels: Donate directly through verified charity websites rather than suspicious links in emails or social media.
- Maintain Transparency: When publicizing donations, ensure the supported charities have been properly vetted.
- Monitor Donations: After contributing, confirm that funds are utilized as intended by reviewing charities' impact reports.
Enjoy a Season of Giving with Confidence
The holidays should be a joyous time to give back — not a period for second-guessing your contributions. Thoughtful policies and careful checks protect your finances and your reputation.
Need your team to learn how to spot scams, from phony fundraisers to deceptive emails and fraudulent payment requests?
Contact us at 336-904-2445 or click here to arrange your complimentary 15-Minute Discovery Call today.
Because the most valuable gift your business and community can receive is unwavering trust.
