Even during a typical year, scammers take advantage of generosity. During the holidays, when giving increases and emotions run high, those risks grow even more.
For a small business, one misstep in charitable giving can connect 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 keep your business (and goodwill) safe this season.
How To Vet a Fundraiser Before You Donate
A legitimate fundraiser should clearly answer:
- Who is organizing this, and what’s their connection to the recipient?
- How exactly will the funds be used, and over what timeline?
- Who is controlling withdrawals? Is there a clear path for funds to reach their target?
- Do close contacts of the recipient (family, friends) publicly support the campaign?
If any of that is unclear, ask for more information. A lack of detail or vague answers is a sign to pause.
Red Flags That Often Signal Scams
Before donating, take a moment to look for common warning signs:
- Misleading or false information on the fundraiser page
- Funds not being used for the stated purpose in a reasonable time frame
- Impersonation of another person or copying someone else’s story
- Stories that seem too perfect or emotionally manipulative
If you notice more than one of these, it’s best to avoid the fundraiser and report it if necessary.
Vetting Charities
Even established organizations should be reviewed before you give. Look for:
- Transparent program descriptions, financial breakdowns, and annual reports
- Clear information about how much of a donation goes to programs vs. overhead
- Charity names that appear in searches with words like fraud, scam, or complaints
A lack of detail or negative reviews should spark caution.
Common Tactics Charity Scammers Use
Scammers often rely on urgency or confusion. Be cautious if you encounter:
- Requests for gift cards, wire transfers or cryptocurrency
- Websites without secure connections (“https”)
- Pressure to donate immediately
- Claims that you pledged or donated in the past
Even professional-looking websites or well-written stories can be misleading, so always verify before giving.
Why it Matters for Your Business
When your business gives to charity, publicly or privately, that generosity becomes part of your brand. A donation to a scam, or even an employee giving through your company name, can undermine trust with clients, partners, and your community.
The same tactics used in charity scams also appear in phishing attempts and payment fraud, so learning to spot them strengthens your overall security posture.
Protecting Your Business
These steps help ensure your giving is safe and smart:
- Donation Policy for Your Business: Define how and where the company will donate and put approval thresholds in place.
- Employee Awareness: Educate your team on fake fundraisers, urging them to double-check and verify before donating under your company name.
- Use Trusted Channels: Donate via charity websites, not through random links in emails or social media.
- Transparency: If your business publicizes that it donates, it’s worth verifying the charity you publicly support.
- Ongoing Monitoring: After donating, check that funds are used as promised (many charities publish impact reports).
Keep Your Holidays Generous
Giving back is a meaningful part of the season. A few intentional steps can help ensure your generosity supports the people and causes that matter.
Want to make sure your team knows how to spot these scams?
Book your free consultation call using the form above.
Because the best gift you can give your business (and your community) is trust.
