November 17, 2025
Scammers are always lurking around acts of kindness, especially during the holiday season when generosity soars and emotions run deep.
Consider this: a few years back, authorities dismantled a huge telefunding fraud ring that made an astonishing 1.3 billion deceptive donation calls, swindling donors out of more than $110 million (Federal Trade Commission).
Simultaneously, researchers at Cornell University uncovered over 800 social media accounts running donation scams on platforms like Facebook, X, and Instagram, steering victims to fraudulent fundraisers.
For small businesses, one wrong move in charitable giving can cost more than money — it can tie your company's name to deception, harm your reputation, and break the trust of clients, partners, and your community.
Here's your essential guide to thoroughly vetting fundraisers, identifying warning signs, and protecting your business and goodwill during the giving season.
How to Thoroughly Vet a Fundraiser Before Donating
A trustworthy fundraiser will clearly answer these key questions:
- Who is organizing the fundraiser, and what is their relationship to the cause or recipient?
- How exactly will the funds be allocated, and on what timeline?
- Who controls the distribution of funds? Is there transparency in how donations reach the final destination?
- Do close contacts—like family or friends of the recipient—publicly endorse the campaign?
If any of these details are unclear or missing, ask for clarification immediately. Avoid fundraisers that respond with silence or evasiveness—they're major red flags.
Common Red Flags That Indicate Potential Scams
Watch out for these warning signs and pause before donating:
- False or misleading information on the fundraiser's page.
- Delays or lack of transparency in how funds are used for their stated purpose.
- Pretending to be someone else or copying someone's genuine story.
- Stories that feel suspiciously too perfect or overly emotional to manipulate feelings.
Multiple red flags? Report the fundraiser immediately and don't contribute.
How to Vet Charities Beyond Crowdfunding Campaigns
Even respected charities might engage in questionable practices. Here's how to assess them:
- Look for transparency: clear program details, financial reports, and annual disclosures.
- Check how much of each donation supports programs versus overhead costs.
- Search the charity's name along with keywords like "fraud," "scam," or "complaints" for any red flags.
Lack of detail or negative reviews? That's a signal to proceed with caution.
Common Tactics Used by Charity Scammers
Be wary of these tactics:
- Requests for donations through gift cards, wire transfers, or cryptocurrency—legitimate charities typically accept credit cards or checks.
- Websites lacking https (notice the "s" in the URL)—this means your data isn't secure.
- Urgent pressure to donate immediately to prevent you from thinking carefully.
- False claims that you've already pledged or donated—always verify before sending money.
Remember, scammers are sophisticated. Even well-designed websites and convincing headlines can hide malicious intent.
Why This Matters for Your Business
Your business's charitable acts—whether publicized or done privately—reflect on your brand. Donations to scams, or even employees giving under your company's name without proper checks, can entangle your brand in fraud scandals.
Additionally, fraud tactics used in charity scams—like urgency, impersonation, and fake websites—also target businesses through phishing, invoice fraud, and wire transfer scams. Training your team to recognize fake fundraisers doubles as essential fraud prevention education.
Steps to Safeguard Your Business & Goodwill
Follow these steps to keep your donations both safe and impactful:
- Set a Clear Donation Policy: Define donation processes and approval limits within your company.
- Educate Employees: Teach your team about fake fundraisers and the importance of verification before donating on behalf of your business.
- Use Trusted Platforms: Donate directly through verified charity websites, avoiding random links from emails or social media.
- Maintain Transparency: If your business announces donations, ensure the charities you support are legitimate.
- Monitor Donations: Track and confirm that funds are used appropriately—many charities publish impact reports.
Keep Your Holidays Generous and Secure
The holiday season is the perfect time to give back—but it should never come at the expense of regret. Smart vetting and clear policies guard your resources and your reputation.
Want your team to confidently identify scams—from fake fundraisers to phishing emails and fraudulent payment requests?
Call us at 503-210-5203 or click here to schedule your free Systems Assessment today.
Because the most valuable gift you can give your business and community is trust that stands unshaken.
