November 17, 2025
Scammers often exploit generosity, especially during the holiday season when giving is at its peak and emotions are heightened, making it a prime time for fraudulent activity.
Consider the case from a few years ago when authorities dismantled a huge telefunding scam that involved 1.3 billion deceptive donation calls and swindled more than $110 million from unaware donors, according to the Federal Trade Commission.
Moreover, researchers at Cornell University uncovered over 800 social media accounts conducting donation scams on platforms like Facebook, X, and Instagram, misleading victims into fake fundraising campaigns.
For small businesses, misdirected charitable giving can result in financial loss and harm your business reputation, eroding trust among clients, partners, and your community.
Here's your actionable guide to thoroughly vet fundraisers, identify warning signs, and safeguard both your enterprise and charitable goodwill this season.
Essential Steps to Vet a Fundraiser Before Donating
Any credible fundraiser will provide clear answers to:
- Who is organizing this effort and what relationship do they have with the beneficiary?
- Precisely how will the donations be allocated, and what is the expected timeline?
- Who manages the withdrawal of funds? Is there a transparent system ensuring donations reach the intended recipient?
- Are family members or close associates publicly endorsing the campaign?
If any answers are unclear or absent, request clarification immediately. Avoid fundraisers that respond evasively or with silence, as this is a clear red flag.
Watch For These Red Flags That Signal Potential Scam
Stop and scrutinize if you observe:
- False or deceptive information presented on the fundraiser page.
- Donations not being directed toward the stated cause within a reasonable timeframe.
- Impersonation or copying of someone else's story to mislead donors.
- Appeals that feel overly perfect or rely heavily on emotional manipulation.
Encountering multiple indicators should prompt you to report the fundraiser and refrain from donating.
Vetting Established Charities — Beyond Just Crowdfunds
Even well-known charities sometimes operate questionably. Look out for:
- Transparent descriptions of programs, full financial reports, and annual statements.
- Clear breakdowns showing what portion of donations directly supports programs versus overhead costs.
- Search results for the charity name with terms like "fraud," "scam," or "complaints".
Insufficient information or negative feedback should raise caution.
Common Schemes Used by Charity Scammers
Be wary of tactics such as:
- Requests to donate through gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks.
- Websites lacking https security indicators (look for the "s" in https), which signals unsafe data transmission.
- Pressures to contribute immediately, using urgency to prevent thoughtful consideration.
- Claims that you already pledged or donated when you don't recall doing so — always double-check before sending money.
Scammers are sophisticated; even professional-looking websites and heartfelt messages might mask deceit.
Why Protecting Your Business Reputation Matters
Corporate charitable giving becomes part of your brand identity. Donating to a scam—or having an employee donate under your company's name—can tie your business to a fraud scandal.
Fraudsters use the same tactics in charity scams to execute phishing, invoice fraud, and wire transfer scams targeting businesses. Training your staff to detect fake fundraisers helps equip them to identify broader fraudulent schemes.
Effective Strategies to Protect Your Business and Generosity
Implement these best practices to keep your donations safe and impactful:
- Establish a Clear Donation Policy: Define the parameters for how and where your company donates, with formal approval processes.
- Educate Your Team: Train employees to recognize fraudulent fundraisers and verify all donation requests made under your business name.
- Use Verified Donation Channels: Always donate via official charity websites rather than links from emails or social media.
- Maintain Transparency: Publicize your giving responsibly by confirming the legitimacy of charities you support publicly.
- Monitor Donations Post-Giving: Verify that funds are utilized as promised by reviewing impact reports many charities offer.
Keep Your Holidays Generous and Secure
The holiday season is a perfect time to give back wisely. With proper checks and policies in place, you can protect both your financial contributions and your business reputation.
Ensure your team is equipped to identify scams—whether it's fake fundraisers, phishing emails, or fraudulent payment requests.
Contact us at 608-416-2400 or click here to schedule your complimentary 10-Minute Discovery Call today.
Because the most valuable gift you can give your business and community is unshakeable trust.
