A few years ago, a massive telefunding fraud was shut down after authorities discovered that the perpetrators had made 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors. (Federal Trade Commission)
At the same time, academic researchers from Cornell University found that on social media alone, more than 800 accounts operated donation scams, pushing victims toward fake fundraisers over platforms like Facebook, X and Instagram.
For a small business, one misstep in charitable giving can do more than lose money – it 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.
A legitimate fundraiser should answer these clearly:
If any of those are vague or missing, ask for clarification first. Silence or evasive answers is a red flag.
If you see any of these, pause and investigate:
When you spot multiple warning signs, report the fundraiser and don’t donate.
Even established charities can have sketchy practices. Here’s what to look for:
A lack of detail or negative reviews should spark caution.
Watch out for:
Scammers are clever. Even polished websites and thoughtful-sounding headlines may hide malicious intent.
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 drag your brand into a fraud story.
Worse: The same tactics fraudsters use in charity scams – urgency, impersonation, phony websites – are also used to target businesses. That overlaps with phishing, invoice fraud and wire transfer scams. Teaching your team to spot fake fundraisers is training them to spot fraudulent tactics across the board.
These steps help ensure your giving is safe and smart:
The holidays are a chance to give back, not a season for regret. Smart checks and policies protect your money and your reputation.
Want to make sure your team knows how to spot these scams – whether it’s a fake fundraiser, a phishing e-mail or a bogus payment request?
Book your free discovery call here. Because the best gift you can give your business (and your community) is trust that cannot be taken.
Complete this form to get started and we will contact you to discuss the next steps. Or call us at 1-833-231-6182 to get started.
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