November 17, 2025
Scammers are always lurking, but during the holiday season—when generosity peaks and emotions run high—they seize the opportunity to exploit kindness.
Consider this: a few years back, authorities dismantled a massive telefunding scam involving 1.3 billion fraudulent donation calls, which swindled over $110 million from unsuspecting donors. (Federal Trade Commission)
Additionally, research from Cornell University revealed that on social media platforms like Facebook, X, and Instagram, over 800 accounts were operating donation scams, steering victims toward fake fundraisers.
For small businesses, a single mistake in charitable giving can do more than deplete funds—it can link your business name to fraud, harm your reputation, and erode the trust of clients, partners, and community members.
Here's your essential guide to vetting fundraisers, identifying warning signs, and safeguarding your business and goodwill this season.
How To Thoroughly Vet A Fundraiser Before Donating
A trustworthy fundraiser will clearly answer these key questions:
- Who is organizing this campaign, and what is their relationship to the beneficiary?
- How will the funds be allocated, and what is the timeline for their use?
- Who manages the withdrawal of funds, and is there a transparent process ensuring donations reach their intended destination?
- Do close contacts (family, friends) publicly endorse the fundraiser?
If any answers are unclear or omitted, request clarification immediately. Avoid silence or evasion—these are critical red flags.
Red Flags That Could Indicate Fundraising Scams
Be cautious if you notice:
- False or misleading claims on the fundraiser's webpage.
- Delays or failures in using funds for the stated goals.
- Impersonation of individuals or plagiarizing someone else's story.
- Stories that appear overly polished or emotionally manipulative.
If multiple warning signs appear, report the fundraiser immediately and refrain from donating.
Vetting Established Charities—Not Only Crowdfunds
Even reputable charities may have questionable practices. Look for:
- Clear program descriptions, detailed financial reports, and up-to-date annual statements.
- Transparency about how donations are split between programs and administrative costs.
- Search results including terms like "fraud," "scam," or "complaints" linked to the charity's name.
Absence of detailed information or negative feedback should raise concerns.
Common Tactics Used By Charity Scammers
Watch for:
- Requests to donate via gift cards, wire transfers, or cryptocurrency—legitimate nonprofits typically accept credit cards or checks.
- Websites lacking https security (look for the "s" indicating secure data encryption).
- Urgent demands to donate immediately, designed to pressure you into hasty decisions.
- Claims that you already pledged or donated without your recollection—always verify before sending funds.
Scammers can create slick websites and convincing messages, but their intentions remain malicious.
Why This Matters For Your Business
Your business's charitable efforts—whether public or private—reflect directly on your brand. Contributing to scams, or employee donations made under your company's name, can unjustly tarnish your reputation.
Moreover, the tactics scammers use in charity fraud—urgency, impersonation, fake sites—are often employed in phishing, invoice fraud, and wire transfer scams that target businesses. Training your team to recognize fake fundraisers helps equip them to combat broader fraud schemes.
How To Safeguard Your Business And Its Goodwill
Implement these strategies to ensure your donations are both secure and effective:
- Create a Donation Policy: Define donation procedures and approval limits within your company.
- Educate Employees: Raise awareness about fake fundraisers and encourage verification before donating on behalf of the company.
- Use Verified Channels: Donate only via official charity websites—avoid links from unsolicited emails or social media.
- Maintain Transparency: If your business publicizes donations, verify the legitimacy of the supported charity.
- Monitor Post-Donation: Follow up to ensure funds are applied as promised; many charities provide impact reports.
Keep Your Holidays Generous Without the Risks
The holiday season should be about giving—with confidence, not regret. By applying smart checks and establishing solid policies, you protect not only your finances but your hard-earned reputation.
Want your team equipped to spot scams—whether it's fake fundraisers, phishing emails, or fraudulent payment requests?
Call us at (802) 331-1900 or click here to schedule your free Discovery Call today.
Because the greatest gift your business and community can receive is unshakable trust.
