November 17, 2025
Even in stable times, scammers are drawn to generosity, but during the holiday season, when giving surges and emotions run deep, their attacks escalate significantly.
Consider this: a few years ago, authorities dismantled a massive telefunding scam where fraudsters made over 1.3 billion deceptive donation calls and swindled more than $110 million from well-meaning donors. (Federal Trade Commission)
In parallel, researchers at Cornell University uncovered over 800 social media accounts running donation scams, steering victims to fraudulent fundraisers on platforms like Facebook, X, and Instagram.
For a small business, a single oversight in charitable giving can cost more than money—it can entangle your brand in deceit, harm your reputation, and weaken trust with clients, partners, and your community.
Discover how to thoroughly vet fundraisers, identify warning signs, and safeguard your business
and goodwill throughout this giving season.
How To Verify A Fundraiser Before Making A Donation
An authentic fundraiser should provide clear answers to these questions:
- Who is behind the fundraiser and what is their relationship to the beneficiary?
- Precisely how will the funds be allocated, and within what timeframe?
- Who manages withdrawals? Is there a transparent process ensuring the money reaches its intended recipient?
- Are close relatives or friends publicly endorsing the campaign?
If any answers are unclear or absent, seek clarification immediately. Lack of response or evasive replies should raise suspicion.
Key Red Flags That May Indicate Fraudulent Fundraisers
Stop and scrutinize if you notice any of the following:
- False or misleading statements on the fundraiser's page
- Funds not utilized for their stated purpose within a reasonable period
- Use of someone else's story or impersonation
- Overly perfect or emotionally manipulative narratives
When multiple red flags appear, do not donate and report the fundraiser immediately.
How To Scrutinize Charities Beyond Crowdfunds
Even reputable charities can engage in questionable practices. Look for these indicators:
- Clear program descriptions along with detailed financials and annual reports
- Explicit breakdown of how donations are split between programs and overhead costs
- Search results associating the charity's name with terms like "fraud," "scam," or "complaints"
Insufficient transparency or negative feedback are warning signs to proceed cautiously.
Common Scamming Techniques Used By Charity Fraudsters
Be vigilant against these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking https (notice the missing "s"), signaling insecure data transmission.
- Creating a sense of urgency to donate immediately to deter thorough consideration.
- Claims that you already pledged or donated when you don't recall—always verify before contributing.
Remember, scammers can appear sophisticated—professional-looking websites and persuasive headlines can conceal malicious schemes.
Why Protecting Your Business Matters
When your business supports charitable causes, whether publicly or privately, your generosity becomes part of your brand identity. A donation to a fraudulent scheme, or employees donating under your business name unknowingly, can entangle your reputation in fraud allegations.
Moreover, the manipulative tactics used in charity scams—urgency, impersonation, fake websites—are often mirrored in phishing, invoice fraud, and wire transfer scams targeting businesses. Empowering your team to recognize fake fundraisers equips them to detect wide-ranging fraudulent attempts.
Steps To Safeguard Your Business And Its Generosity
Implement these measures for secure and responsible giving:
- Establish A Donation Policy: Clearly define how, where, and under what authority your company donates.
- Raise Employee Awareness: Train your team to identify fake fundraisers and to verify before donating using your company name.
- Donate Through Trusted Channels: Use official charity websites rather than unknown email links or social media requests.
- Maintain Transparency: If your company publicizes charitable giving, ensure the charities you support are legitimate and trustworthy.
- Monitor Donations Post-Giving: Follow up to confirm donations are used as promised; many charities share impact reports.
Keep Your Holiday Giving Safe And Impactful
The holidays offer an opportunity to give back—not to fall prey to scams. Applying thoughtful safeguards protects both your funds and your hard-earned reputation.
Ensure your team is equipped to identify scams—whether they're fake fundraisers, phishing emails, or fraudulent payment requests.
Contact us at 630-895-8208 or click here to book your free Consult today.
Because the greatest gift to your business and community is unshakable trust.
