November 17, 2025

Even in good times, scammers circle around generosity. But during the holidays — when giving increases and emotions run high — they truly pounce.

A few years ago, a massive telefunding fraud was shut down after investigators discovered the perpetrators had made 1.3 billion deceptive donation calls, collecting more than $110 million from unsuspecting donors (Federal Trade Commission).

At the same time, researchers at Cornell University found over 800 social media accounts running fake donation drives — directing victims to bogus fundraisers across Facebook, X, and Instagram.

For small businesses, one bad click can do more than cost money. A single donation to the wrong campaign can link your name to fraud, damage your reputation, and erode trust with clients, partners, and your community.

Here’s how to vet fundraisers, spot red flags, and protect your generosity this season.

🔍 How To Vet A Fundraiser Before You Donate

A legitimate fundraiser should clearly answer these questions:

  • Who is organizing it, and what’s their relationship to the recipient?

  • How will the funds be used, and over what timeline?

  • Who controls withdrawals, and is there a clear path for funds to reach their target?

  • Do family or friends of the recipient publicly support the campaign?

If any of those are vague or missing, ask questions before donating. Silence or evasive answers = 🚩 red flag.

🚨 Red Flags That Often Signal Scams

Pause and investigate if you notice:

  • Misleading or false details on the fundraiser page

  • Funds not being used for the stated purpose

  • Impersonation of another person or copied stories

  • Stories that feel overly emotional or “too perfect”

If multiple signs appear, report the campaign and avoid donating.

🏢 Vetting Charities (Not Just Crowdfunds)

Even established charities can have questionable practices. Before giving:

  • Look for transparent financial reports and detailed program descriptions

  • Check how much of your donation actually goes to programs vs. overhead

  • Search the charity’s name with words like “fraud,” “scam,” or “complaints”

A lack of detail or a history of negative reviews should raise caution.

🧠 Common Tactics Charity Scammers Use

Watch for:

  • Requests to donate via gift cards, wire transfers, or cryptocurrency

  • Websites missing “https” (the “s” stands for secure)

  • Pressure to donate right now — urgency is a manipulation trick

  • Messages claiming you already pledged when you didn’t

Even polished websites and heartfelt stories can hide malicious intent. Always pause, verify, and use trusted channels.

💼 Why This Matters For Your Business

When your business donates — publicly or privately — that generosity becomes part of your brand.

A mistaken donation to a fraudulent cause, or even an employee giving under your company name, can drag your brand into an embarrassing fraud story.

Worse: The same manipulation tactics used in charity scams — urgency, impersonation, fake websites — are the exact same ones used in phishing, invoice, and wire transfer fraud.

Teaching your team to spot fake fundraisers helps them recognize broader social engineering tactics that target your business every day.

🛡️ How To Protect Your Business (And Your Goodwill)

Protect your generosity and your reputation with a few smart steps:

  • Create a Donation Policy: Define how and where your business gives, and set approval thresholds.

  • Raise Employee Awareness: Teach staff to verify fundraisers before donating under your company name.

  • Use Trusted Channels: Donate directly through verified charity websites, not via social media or email links.

  • Verify Before You Share: Double-check the legitimacy of any cause your business promotes publicly.

  • Monitor Impact: After donating, follow up to ensure funds are being used as promised.

🎄 Keep Your Holidays Generous — Not Risky

The holidays should be a time to give back, not to recover from fraud.
A few extra checks can protect your money, your name, and your community’s trust.

Want to make sure your team can spot fake fundraisers, phishing emails, and payment scams?

💬 Book your free discovery call — we’ll show you quick, practical steps to keep your business and your giving secure.

Because the best gift you can give your business — and your community — is trust that can’t be stolen.