Scammers love the holiday season. When generosity is high and emotions run strong, they see opportunity. A few years ago, authorities shut down a massive telefunding scam after discovering 1.3 billion deceptive donation calls that collected more than 110 million dollars from unsuspecting donors.
Research from Cornell University found more than 800 accounts on platforms like Facebook, X and Instagram pushing fake donation campaigns.
For a small business, one wrong move in charitable giving can do more than cost money. It can connect your name to fraud, damage your reputation and erode trust with clients, partners and your community. Here is how to keep your giving safe and protect your brand this season.
How To Vet A Fundraiser Before You Donate
A legitimate fundraiser should answer these questions clearly:
- Who is organizing the campaign and how they are connected to the recipient
- How funds will be used and when
- Who controls withdrawals and how the money reaches its destination
- Whether close contacts of the recipient support the campaign publicly
If any answers are missing or vague, ask questions. Silence or evasive responses are red flags.
Red Flags That Often Signal Scams
Be cautious if you notice:
- False or misleading information on the fundraiser page
- Delays in how funds are used
- Impersonation of someone else or stolen stories
- Emotionally manipulative narratives that seem too perfect
If multiple warning signs appear, do not donate and report the fundraiser.
Vetting Charities (Not Just Crowdfunds)
Even established charities can have questionable practices. Look for:
- Transparent program descriptions, financial reports and clear impact data
- Information on how much of each donation goes to programs versus overhead
- Negative search results tied to fraud, scam or complaints
A lack of clear information should trigger caution.
Common Tactics Charity Scammers Use
- Requests to donate using gift cards, wire transfers or cryptocurrency instead of secure payment methods
- Websites without https in the address
- Pressure to donate immediately
- Claims that you already pledged or gave without remembering
Even polished websites and convincing headlines can hide malicious intent.
Why This Matters For Your Business
When your business donates, that generosity becomes part of your public image. A donation to a scam can drag your name into a fraud story.
The same tactics used in fake fundraisers often overlap with phishing, invoice fraud and wire transfer scams. Teaching your team to spot these schemes helps them recognize other threats too.
How To Protect Your Business And Your Goodwill
- Create a clear donation policy with approval steps.
- Train employees to verify before donating under the company name.
- Use only trusted charity websites, never random links in email or social media.
- Verify any organization your business supports publicly.
- Follow up after donating to ensure funds are used as promised.
Keep Your Holidays Generous, Not Risky
The holidays should be about giving back, not becoming a target. A few smart checks and clear policies go a long way in protecting your business and your community.
👉 Book a free discovery call or call us at (217) 617 4159 to help your team learn how to spot scams before they cause damage.