November 17, 2025
Scammers lurk year-round, but during the holiday season, when generosity peaks and emotions run strong, these fraudsters seize the opportunity like never before.
Consider this: a major telefunding scam was dismantled after authorities revealed that fraudsters made over 1.3 billion deceptive donation calls and illegally collected more than $110 million from well-meaning donors. (Federal Trade Commission)
Similarly, research from Cornell University uncovered more than 800 fraudulent social media accounts promoting fake fundraisers across platforms like Facebook, X, and Instagram.
For small businesses, one wrong donation decision can go beyond financial loss — it could link your company's name to fraudulent activity, harm your reputation, and diminish trust among clients, partners, and your community.
Learn how to thoroughly vet fundraisers, identify warning signs, and protect both your business and your goodwill this holiday season.
How To Thoroughly Evaluate a Fundraiser Before Donating
A genuine fundraiser will provide clear answers to these key questions:
- Who is organizing the campaign, and what is their relationship to the beneficiary?
- How will the donated funds be allocated, and what is the expected timeline?
- Who manages the withdrawal of funds, and is there a transparent process to ensure the money reaches its intended cause?
- Do trusted contacts of the recipient (family, friends) openly endorse the fundraiser?
If any information is unclear or missing, request clarification — evasive or no responses are significant red flags.
Warning Signs That Indicate Potential Fundraising Scams
Stop and investigate if you notice any of the following:
- False or misleading details presented on the fundraiser page
- Funds not being used as promised within a reasonable timeframe
- Impersonation of others or plagiarizing stories
- Fundraiser narratives that feel overly perfect or exploit emotional triggers
If you detect multiple red flags, report the fundraiser and refrain from donating.
How To Authenticate Charities Beyond Crowdfunding Campaigns
Even recognized charities can exhibit suspicious behavior. Watch for these indicators:
- Detailed program descriptions, transparent financial disclosures, and updated annual reports
- Clear breakdown of what percentage of donations fund programs versus overhead costs
- Charity names flagged in online searches with keywords like "fraud," "scam," or "complaints"
Absence of sufficient detail or negative reviews should raise caution.
Common Techniques Employed by Charity Scammers
Stay alert for these tactics:
- Requests for donations via gift cards, wire transfers, or cryptocurrency — legitimate charities typically accept credit cards or checks.
- Websites lacking https security (missing the "s"), indicating unsecured data transmission.
- High-pressure appeals urging you to donate immediately, designed to bypass thoughtful decision-making.
- Claims that you already pledged or donated without your recollection — always verify before giving.
Remember, scammers can create polished websites and convincing stories, but hidden dangers remain.
Why Vigilance Matters for Your Business
Your company's charitable contributions, whether public or private, shape your brand reputation. Accidentally funding a scam or allowing employees to donate under your business name to fraudulent causes can drag your organization into damaging fraud scandals.
More concerning is that the manipulative tactics used in charity scams — such as urgency, impersonation, and fake websites — often overlap with phishing, invoice fraud, and wire transfer scams targeting businesses. Training your team to identify fake fundraisers strengthens their ability to detect broader fraudulent schemes.
Proven Strategies To Safeguard Your Business and Its Goodwill
Implement these best practices to ensure your philanthropic efforts remain secure and impactful:
- Establish a Clear Donation Policy: Define approved giving channels, set donation limits, and formalize an approval process.
- Educate Your Employees: Train your staff to recognize fake fundraisers and emphasize verifying causes before donating in your company's name.
- Use Trusted Donation Methods: Always donate through legitimate charity websites rather than random email or social media links.
- Maintain Transparency: If publicizing donations, thoroughly vet the organization you're supporting to ensure credibility.
- Monitor Donations Post-Giving: Verify funds are used appropriately by reviewing impact reports many charities publish.
Keep Your Holiday Generosity Safe and Impactful
The holiday season is the perfect opportunity to give back, but smart safeguards are essential to avoid regret. Implementing solid vetting processes ensures your donations protect both your investment and your valuable reputation.
Want your team to become expert at spotting scams—whether fake fundraisers, phishing emails, or fraudulent payment requests?
Reach out to us at 316-867-4566 or click here to book your free 15-Minute Discovery Call today.
Because the most valuable gift you can offer your business and community is unshakable trust.
