November 17, 2025
The holiday season, a time filled with generosity, unfortunately attracts scammers who prey on your goodwill. While scams persist year-round, they surge when charitable giving intensifies, exploiting heightened emotions.
Consider the massive telefunding scam uncovered a few years ago, where fraudsters made an astonishing 1.3 billion fraudulent donation calls, netting over $110 million from unsuspecting donors, according to the Federal Trade Commission.
Similarly, Cornell University researchers identified over 800 social media accounts that ran donation scams across platforms like Facebook, X, and Instagram, directing victims to counterfeit fundraisers.
For small businesses, one wrong move in charitable contributions can cost more than money—it risks associating your brand with fraud, undermining your reputation and shaking client, partner, and community trust.
Here's your essential guide to thoroughly evaluate fundraisers, recognize warning signs, and safeguard your business and its goodwill this season.
How to Thoroughly Vet a Fundraiser Before Contributing
A trustworthy fundraiser should provide clear answers to these questions:
- Who is organizing this campaign, and what is their relationship to the cause?
- How exactly will the donations be allocated, and what is the timeline for fund usage?
- Who manages the withdrawal process, ensuring funds reach the intended recipients?
- Are close contacts, such as family or friends of the recipient, publicly endorsing the fundraiser?
If any details are unclear or missing, seek clarification immediately. Avoid silence or evasive responses—they are clear red flags.
Red Flags Indicating Potential Scams
Pause and scrutinize carefully if you observe any of the following signs:
- False or misleading information presented on the fundraiser's page.
- Donations not reaching the intended purpose within a reasonable timeframe.
- Impersonation of individuals or copying of authentic stories.
- Fundraising appeals that seem overly perfect or manipulate emotions excessively.
Spotting multiple such indicators? Report the fundraiser immediately and refrain from donating.
Evaluating Charities Beyond Crowdfunding
Even reputable charities may sometimes operate questionably. Watch for:
- Detailed program descriptions, transparent financial statements, and available annual reports.
- Clear breakdowns of how donations are split between programs and overhead costs.
- Online searches revealing terms like "fraud," "scam," or "complaints" linked to the charity.
Any shortage of transparency or poor reviews should prompt caution.
Common Tricks Used by Charity Scammers
Be vigilant against these tactics:
- Requests for payment through gift cards, wire transfers, or cryptocurrencies instead of credit cards or checks.
- Websites lacking https in the URL (note the absence of the "s"), signaling unsecured connections.
- Pressures to donate immediately to prevent careful consideration.
- Claims suggesting you've already pledged or donated when you have no recollection—always verify before proceeding.
Remember, scammers can craft sophisticated websites and compelling narratives hiding malicious intent.
Why Protecting Your Business Matters
Your business generosity, whether public or private, shapes your brand identity. A donation tied to a scam—or even employee giving under your company's name—can tarnish your reputation and entangle your brand in fraud controversies.
Moreover, the fraud techniques used in charity scams—urgency, impersonation, fake sites—mirror those targeting businesses, such as phishing, invoice fraud, and wire transfer scams. Training your team to spot fraudulent fundraisers strengthens their ability to identify a broad range of scams.
How to Protect Your Business and Its Goodwill
Adopt these best practices to secure your charitable efforts:
- Establish a Clear Donation Policy: Define where and how your company donates and set approval limits.
- Educate Employees: Train your team to identify fake fundraisers and verify details before donating on behalf of the company.
- Use Verified Channels: Make donations only through official charity websites, not random social media or email links.
- Maintain Transparency: Verify charities before publicly associating your business with them.
- Monitor Donations: Confirm that funds are used as promised by reviewing charity impact reports.
Celebrate a Generous yet Secure Holiday Season
The holidays are for giving with confidence, not for regrets. Implementing thoughtful checks and clear policies shields both your finances and your brand reputation.
Want your team to confidently recognize scams—whether a fraudulent fundraiser, phishing email, or fake payment request?
Contact us at 832-536-9012 or click here to schedule your free Discovery Call today.
Because the greatest gift your business and community can receive is unshakable trust.
