November 17, 2025
Scammers are always lurking around generosity, but during the holiday season—when giving is at its peak and emotions run deep—they seize every opportunity to exploit.
Take, for example, a recent crackdown on a massive telefunding scam where fraudsters made 1.3 billion deceptive calls and illicitly collected over $110 million from unsuspecting donors. (Federal Trade Commission)
In addition, research from Cornell University revealed that on social media platforms alone, more than 800 accounts were involved in donation scams, directing victims to fake fundraisers via Facebook, X, Instagram, and others.
For small businesses, one wrong move in charitable giving can cost more than money—it can associate your brand with fraud, tarnish your reputation, and erode trust among clients, partners, and your local community.
Below, discover how to thoroughly vet fundraisers, recognize warning signs, and safeguard your business and goodwill this holiday season.
Essential Steps to Verify a Fundraiser Before Donating
Any credible fundraiser should clearly provide answers to these questions:
- Who is behind the fundraiser, and what is their relationship to the beneficiary?
- How will the donated funds be allocated and within what timeframe?
- Who manages fund disbursement, and is there a transparent method ensuring funds reach the intended recipients?
- Are close relatives or friends publicly endorsing the campaign?
If answers are unclear or incomplete, request more information immediately. Any evasion or silence is a strong warning.
Common Red Flags Indicating Potential Scams
Be cautious and investigate thoroughly if you notice:
- False or misleading details presented on the fundraiser's page.
- Funds not being directed to the stated causes within a reasonable timeline.
- Impersonation of individuals or duplicated stories to deceive donors.
- Stories that appear overly perfect or designed to emotionally manipulate.
Spotting several red flags? Report the fundraiser immediately and refrain from donating.
How to Vet Established Charities Beyond Crowdfunds
Even well-known charities can sometimes operate with questionable transparency. Check for:
- Clear program descriptions, detailed financial reports, and accessible annual disclosures.
- Information outlining the percentage of donations allocated to programs versus overhead costs.
- Negative online reviews or search results associating the charity with "fraud," "scam," or "complaints."
Scarcity of information or prevalent negative feedback should raise alarm bells.
Beware of These Common Charity Scam Tactics
Watch closely for:
- Requests for donations via gift cards, wire transfers, or cryptocurrency - legitimate charities typically accept credit cards or checks.
- Fundraiser websites lacking HTTPS security (look for the "s" in the web address), indicating insecure data handling.
- High-pressure tactics urging you to donate immediately to prevent you from making an informed decision.
- Claims that you have already pledged or donated when you do not recall doing so—always verify before contributing.
Keep in mind, sophisticated scammers can design polished websites and compelling headlines to mask their true intentions.
Why Vetting Matters for Your Business Reputation
When your business donates—whether publicly or behind the scenes—your generosity becomes part of your corporate identity. Associating with a fraudulent fundraiser, even inadvertently, can severely harm your brand's credibility.
Moreover, the same deception tactics in charity scams—like urgency, identity impersonation, and fake websites—are also used to target businesses through phishing, invoice fraud, and wire scams. Equipping your team to recognize fake fundraisers strengthens their ability to detect broader fraudulent threats.
Strategies to Protect Your Business and Its Goodwill
Adopt these measures to ensure your charitable giving remains secure and effective:
- Create a Clear Donation Policy: Establish guidelines for when, how, and where your company donates, including approval thresholds.
- Raise Employee Awareness: Train your team to identify fake fundraisers and to verify causes before donating on your business's behalf.
- Use Official Channels: Always donate through verified charity websites rather than random links found in emails or social media.
- Maintain Transparency: If your company publicly announces donations, double-check the legitimacy of the charities supported.
- Monitor Impact Regularly: Follow up post-donation to confirm funds are used as intended; many reputable charities publish impact reports.
Keep Holiday Giving Generous and Secure
The holiday season is a perfect opportunity to give back wisely—putting smart safeguards in place will protect both your resources and your reputation.
Want your team to confidently identify scams—whether fake fundraisers, phishing attempts, or fraudulent payment requests?
Call us at (973) 575-4950 or click here to schedule your free Consultation today.
Because the greatest gift you can offer your business and community is unshakable trust.