Before you donate, ask three questions: who runs the fundraiser, where exactly the money goes, and how you're being asked to pay. A real charity answers all three without flinching. A scam dodges, rushes you, or wants a gift card. Holiday generosity is when fraudsters cash in, so the few minutes of checking pay off.
The numbers aren't small. A few years ago a single telefunding operation was shut down after placing 1.3 billion fraudulent donation calls and taking over $110 million from donors, according to the Federal Trade Commission.
Crowdfunding is no safer. Cornell University researchers found more than 800 social media accounts running donation scams, steering people toward fake fundraisers on Facebook, X, and Instagram.
For a business, the cost isn't just the money. Donate to a fraud, or let one collect under your company name, and you've tied your brand to a scam in front of customers, partners, and your community. Here's how to vet a fundraiser and stay out of that story.
Ask these questions before you give a cent
A legitimate fundraiser answers all of these in the open:
- Who is running it, and how are they connected to the person or cause getting the money?
- What exactly will the money be spent on, and by when?
- Who controls the funds, and how can you verify the money actually reaches the cause?
- Are people close to the recipient, like family or friends, publicly backing it?
If any answer is missing or vague, ask. An organizer who dodges or ignores the question is telling you something.
Red flags that mean stop and dig deeper
Any one of these is reason to slow down:
- Claims on the campaign page you can't back up.
- Money that hasn't been used the way the page said it would, well past a reasonable window.
- A heartbreaking story that turns out to be lifted from someone else.
- An appeal that feels too polished or leans hard on your emotions.
See more than one of these and the move is simple: don't donate, and report the fundraiser.
Even a real charity deserves a second look
A registered charity isn't automatically a good one. Check for:
- Clear program goals, open financials, and regular annual reports.
- A breakdown of how much of each dollar goes to programs versus overhead.
- What comes up when you search the charity's name next to "fraud," "scam," or "complaints."
No financials to find, or a trail of negative reports, is your answer.
The tactics scammers use on donors
Watch for these plays:
- Asking you to pay with gift cards, wire transfers, or cryptocurrency. Real charities take credit cards or checks. This one is the clearest tell of all.
- A donation page with no https. Look for the "s" in the URL; without it, the connection isn't secure.
- Pressure to give right now, before you've had a chance to check anything.
- A claim that you already pledged or donated. You didn't. Confirm before you send anything.
Don't trust a slick website to vouch for anyone. Good fraudsters build professional pages and write convincing copy precisely so you won't ask questions.
The same scam shows up as phishing at work
Whether you announce your giving or keep it quiet, it reflects on your brand. Back a fraud, or let one collect in your name, and you can hand your credibility to a scammer.
The moves behind a charity scam, manufactured urgency, impersonation, a fake site, are the same ones behind phishing, invoice fraud, and bogus wire transfer requests aimed at your company. Teach your team to spot a fake fundraiser and you've sharpened them against all of it.
Five steps to protect the company
- Write a donation policy. Spell out which causes you support, how you pay, and who has to approve it.
- Brief your team. Show them what fake fundraisers look like and make verifying the cause a step before anyone gives on the company's behalf.
- Give through the front door. Donate on the charity's own verified website, not through an email or social media link.
- Confirm before you publicize. Before you announce a gift, do the homework to be sure the recipient is real.
- Follow the money. Check back after you give. Most legitimate charities publish impact and financial reports.
A few minutes of checking is what keeps your holiday giving generous and safe, with your money and your reputation both intact.
Want your team to catch these scams, from fake fundraisers to phishing and fraudulent payment requests? We can help.