November 17, 2025
Scammers are always lurking, especially around times of generosity. During the holiday season, when giving spikes and emotions run high, they exploit this opportunity to the fullest.
Consider the massive telefunding scam uncovered a few years ago, where fraudsters placed an astonishing 1.3 billion deceptive donation calls and swindled over $110 million from unsuspecting donors, according to the Federal Trade Commission.
Furthermore, Cornell University researchers identified more than 800 fraudulent social media accounts running donation scams that redirect victims to fake fundraisers on platforms like Facebook, X, and Instagram.
For small businesses, even a single mistake in charitable giving isn't just a financial loss—it can link your brand to fraud, tarnish your reputation, and erode trust among clients, partners, and your community.
Here's your essential guide to verifying fundraisers, identifying warning signs, and safeguarding your business and goodwill this holiday season.
How to Authenticate a Fundraiser Before You Donate
Before contributing, a credible fundraiser should clearly provide answers to these critical questions:
- Who is behind this fundraiser, and what is their relationship to the cause or recipient?
- How will the donations be utilized specifically, and within what timeframe?
- Who manages the funds' disbursement, and is there a transparent process ensuring the money reaches the intended recipients?
- Do the recipient's close circles—family or friends—publicly endorse the campaign?
If any information seems unclear or absent, request detailed explanations. Avoid fundraisers that respond with silence or evasiveness—that's a major red flag.
Warning Signs That Often Indicate a Scam
Be vigilant if you notice any of these indicators:
- False or misleading information presented on the fundraiser's page
- Donations not allocated to the declared cause within a reasonable timeline
- Attempts to impersonate another individual or plagiarize someone else's story
- Stories that feel too perfect or emotionally manipulative in tone
If you detect several of these red flags, report the fundraiser immediately and refrain from donating.
Evaluating Charities Beyond Crowdfunds
Even well-known charities may engage in questionable practices. Here's what to look for when considering their legitimacy:
- Clear and detailed program descriptions, financial reports, and annual disclosures
- Information reflecting what portion of donations directly supports programs versus administrative costs
- Research charity names along with keywords like "fraud," "scam," or "complaints" for any negative reports
Absence of transparency or unfavorable reviews should prompt careful consideration.
Common Tricks Used by Charity Scammers
Watch for these deceptive tactics:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate organizations typically accept credit cards or checks.
- Websites lacking "https" (the "s" indicates secure data transmission).
- Urgent pressure to donate immediately—a common ploy to prevent careful thought.
- Claims that you already pledged or donated when you don't recall—always verify before sending money.
Remember, scammers are sophisticated. Even professionally designed websites and compelling headlines might mask malicious intent.
Why This Matters for Your Business
Every time your business contributes to charity—whether openly or behind the scenes—your generosity becomes part of your public image. Supporting a scam, or having employees donate under your company's name unknowingly, can irrevocably link your brand to fraud.
Moreover, the manipulative techniques used in charity scams—such as urgency, impersonation, and fake websites—are also tactics common in phishing, invoice fraud, and wire transfer scams targeting businesses. Training your staff to recognize fraudulent fundraisers helps protect your organization against a wider range of fraud schemes.
Protecting Your Business and Your Goodwill
Follow these key steps to ensure your charitable efforts are secure and impactful:
- Create a Donation Policy: Establish clear guidelines for donating, including approval processes and defined limits.
- Educate Employees: Train your team to identify fake fundraisers and verify causes before donating under the company name.
- Use Official Channels: Make donations directly on verified charity websites rather than through links received via emails or social media.
- Ensure Transparency: If publicizing your charitable activities, confirm the authenticity of the supported organizations.
- Monitor Donations: After giving, track that donations are applied as intended; many charities publish impact reports to confirm this.
Keep Your Holidays Giving and Secure
The holiday season is about generosity, not regret. Implementing careful checks and firm policies protects both your finances and your company's reputation.
Ready to equip your team with the skills to identify scams—from fake fundraisers to phishing attempts and fraudulent payment requests?
Contact us at 320-310-4321 or click here to schedule your free 15-Minute Discovery Call today.
Because the most valuable gift you can give your business and community is unshakable trust.
