November 17, 2025
Scammers lurk year-round, but the holiday season, with its surge in generosity and emotion, is prime time for fraudsters to strike.
Consider this: a massive telefunding scam was dismantled, revealing 1.3 billion deceptive donation calls and over $110 million fraudulently obtained from donors. (Federal Trade Commission)
Research from Cornell University uncovered more than 800 social media accounts running donation scams, leading victims to fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, a single mistake in charitable giving risks more than finances — it can link your brand to fraud, tarnish your reputation, and weaken trust with clients, partners, and the community.
This guide reveals how to thoroughly vet fundraisers, recognize warning signs, and safeguard both your business and your goodwill during the giving season.
Essential Steps to Vet a Fundraiser Before Donating
Authentic fundraisers will readily provide clear answers to these questions:
- Who is organizing this fundraiser, and what relationship do they have with the beneficiary?
- How will the donations be used, and what is the expected timeline for their impact?
- Who manages the funds, and is there a secure method ensuring donations reach the intended cause?
- Do close associates of the beneficiary, such as family or friends, openly endorse this campaign?
If any answers are unclear or missing, seek clarification immediately. Dodging questions is a major red flag.
Common Warning Signals of Fundraising Scams
Be cautious and investigate if you notice:
- False or deceptive content on the fundraiser's page.
- Delays or diversions in using funds for their stated purpose.
- Attempts to impersonate others or plagiarize stories.
- Emotionally manipulative or overly perfect stories that feel inauthentic.
Encounter multiple red flags? Report the fundraiser immediately and avoid donating.
How to Evaluate Established Charities
Even reputable charities deserve scrutiny. Look for:
- Clear program details, transparent financials, and up-to-date annual reports.
- Information on what percentage of donations supports programs versus overhead.
- Search results avoiding negative terms like "fraud," "scam," or "complaints" linked to the charity's name.
Missing details or bad reviews should prompt extra caution.
Beware These Charity Scam Tactics
Watch out for methods like:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate nonprofits typically accept credit cards or checks.
- Websites lacking https security (check for the "s" in the URL), which means your data may be at risk.
- High-pressure tactics urging you to donate immediately to prevent careful thought.
- False claims that you've already made a donation—always verify before sending money.
Scammers can craft slick websites and convincing stories; always stay alert to hidden dangers.
Why Protecting Your Business Matters
Your business's charitable giving reflects on your brand's integrity. Donations to scams or unauthorized employee giving can ensnare your brand in fraud controversies.
Moreover, fraud tactics used in charity scams—like impersonation, urgency, and fake websites—also target businesses through phishing, invoice fraud, and wire transfer scams. Educating your team on detecting fake fundraisers strengthens overall fraud defense.
Smart Strategies to Safeguard Business Giving and Reputation
Implement these vital steps:
- Establish a Donation Policy: Define approved donation channels, set clear approval processes, and establish limits.
- Educate Employees: Train your team to recognize fake fundraisers and verify before making donations using company affiliation.
- Use Official Platforms: Make donations directly through verified charity websites rather than random links in emails or social media.
- Maintain Transparency: If you publicize donations, confirm the legitimacy of charities you support publicly.
- Ongoing Oversight: Follow up to ensure funds are utilized as promised, checking charity impact reports if available.
Celebrate a Generous and Secure Holiday Season
Make gift-giving meaningful, not risky. By applying smart verification and policies, you protect not just your finances but your valued reputation.
Want your team fully prepared to identify scams—from fake fundraisers to phishing and fraudulent payment requests?
Contact us at 312-564-5446 or click here to book your complimentary Initial Consultation today.
The most priceless gift you can give your business and community is an unbreakable trust.
