Holiday Donation Scams: What to Watch Out for Before You Give Online

Even outside of the holiday season, scammers are quick to exploit goodwill. But during the holidays, when charitable giving naturally increases and emotions are heightened, fraudulent activity spikes dramatically. This isn’t just theory—it’s backed up with hard evidence. Not long ago, federal authorities dismantled one of the largest telefunding fraud operations in history after it emerged that fraudsters were behind 1.3 billion deceptive solicitation calls, netting more than $110 million from well-meaning individuals who believed they were supporting legitimate causes. (Source: Federal Trade Commission)

Fraud isn’t confined to phone calls, either. Research from Cornell University showed that more than 800 social media accounts have actively driven donation scams, steering users toward phony fundraisers through platforms such as Facebook, X, and Instagram. These scams often target both individuals and organizations, exploiting trending causes or crises to lend credibility to their requests.

For small businesses, falling victim to a fraudulent fundraiser can have consequences that go beyond a one-time loss. Just a single misjudged donation can intertwine your business’s reputation with fraudulent activity, triggering not only financial loss but also erosion of client trust and potential damage to valued partnerships within your industry and community.

Being diligent about where and how your business donates isn’t just good practice—it’s essential for protecting both your financial resources and the integrity of your brand. In the following sections, we’ll outline practical steps you can take to vet fundraisers, recognize warning signs, and make charitable giving safe for your business and the communities you serve.

How To Vet A Fundraiser Before You Donate

Before making a donation—especially on behalf of your business—treat every online fundraiser like a vetting process, not a leap of faith. A legitimate campaign will provide clear, verifiable answers to key questions:

• Who is organizing the fundraiser, and what is their personal or professional connection to the intended recipient? Look for transparent disclosure here, including full names and verifiable affiliations.
• How specifically will the funds be distributed? Is there a detailed breakdown of expenses, priorities, and a realistic timeline for use? Reputable organizers often outline this right on their campaign page.
• Who has access to the collected funds? Ensure you know exactly who controls withdrawals and how the money will be delivered to the recipient—lack of clear oversight increases the risk of fraud.
• Are trusted contacts or family members of the recipient publicly endorsing or actively sharing the campaign? Endorsements from those closest to the situation provide crucial credibility.

If any of these details are unclear, incomplete, or missing, don’t move forward based on assumptions. Ask the organizer to provide more information. If you receive generic, evasive, or defensive responses—or silence altogether—consider that a significant warning sign and withhold your donation. In the current threat landscape, extra diligence is not only justified—it’s non-negotiable for protecting your business’s reputation and community trust.

Red Flags That Often Signal Scams

If you encounter any of the following, stop and scrutinize the fundraiser before proceeding:

• Fundraiser pages that display misleading statements, exaggerated claims, or outright falsehoods meant to mislead donors
• Money not being directed toward the stated purpose or a lack of timely and transparent updates on how donations are used
• Organizers impersonating others, or stories that are copied from legitimate campaigns to gain your trust
• Narratives that feel suspiciously polished, use excessive emotional appeal, or seem intended to manipulate your response

The presence of more than one of these red flags is cause for real concern. If you notice them, report the fundraiser through the hosting platform and refrain from making a donation. Staying vigilant protects both your business and your community from unnecessary risk.

Vetting Charities (Not Just Crowdfunds)

Even well-known charities aren’t immune to questionable practices, so it’s critical to approach every organization with the same level of scrutiny you’d use for a new fundraiser. As part of your due diligence, focus on these key indicators:

• Look for detailed program descriptions that explain exactly what the charity does, clear financial disclosures, and accessible annual reports. These documents should break down how funds are allocated between direct charitable work and operational overhead, making it easy to see how your donation will have an impact.
• Verify whether the charity publishes straightforward information about the percentage of your donation that will go directly to its programs. Reputable organizations don’t hide these numbers—they highlight them.
• Run a quick search for the charity’s name alongside terms like “fraud,” “scam,” or “complaints.” Results that raise repeated concerns or expose unresolved issues should not be taken lightly.

A lack of transparency, missing financial information, or a pattern of negative reviews should immediately prompt an extra level of caution. If anything feels unclear or glossed over, don’t hesitate to ask for clarification or seek out third-party charity watchdog reports before deciding to donate.

Common Tactics Charity Scammers Use

Watch out for:

• Requests for donations through methods that are difficult to track or reverse, such as gift cards, wire transfers, or cryptocurrency. Genuine charities make it easy and secure to give—most accept credit cards or checks, and provide receipts for your records.
• Charity websites that lack secure connections—always look for “https” in the web address, not just “http.” The missing “s” means any information you submit is transmitted without the encryption necessary to keep your data safe.
• Pressure tactics designed to rush your decision. Scammers often insist you donate immediately or risk missing out, knowing that urgency can override your usual caution or company protocols.
• Unexpected claims that you—or your business—have already pledged or contributed. If you receive a message referencing a past donation you don’t remember, pause and verify through direct contact with the charity itself before providing any payment details.

It’s important to remember that scammers frequently invest in professional-looking websites and communications to lend credibility to their schemes. Even convincing branding and carefully crafted messages can conceal fraudulent intent, making vigilance essential.

Why This Is Important For Your Business

Whenever your business donates to a charity—whether publicly through sponsorships or quietly as a private contribution—that generosity becomes intertwined with your company’s brand identity. The risks extend beyond potential embarrassment: if a donation ends up supporting a fraudulent charity, or even if an employee donates using your company’s name without proper checks, your brand could be linked directly to a scam. This association can quickly damage your credibility, erode partner or customer trust, and complicate compliance reporting or audits.

Moreover, the fraudulent tactics that fuel charity scams—urgency, high-pressure messaging, impersonation of reputable organizations, and counterfeit websites—are the same techniques used to carry out broader types of business fraud. These overlap with phishing schemes, fake invoices, business e-mail compromise, and fraudulent wire transfers that can threaten your operations and finances. By equipping your workforce to recognize the warning signs of fake fundraisers, you’re not just safeguarding your charitable giving—you’re also reinforcing critical skills that help stop a wide range of digital, financial, and social engineering threats before they take root in your organization. Training your team to question and verify suspicious requests strengthens your defense against evolving fraud tactics across every channel.

How To Protect Your Business (And Your Goodwill)

These proactive measures help ensure your company’s charitable efforts remain secure, responsible, and aligned with your organization’s values:

Establish a Clear Donation Policy: Formalize your company’s process for charitable giving by setting explicit guidelines on which causes you support, who is authorized to approve donations, and at what dollar amounts additional oversight is required. This helps prevent unauthorized contributions and ensures every donation reflects your organization’s standards.

Train Employees to Spot Red Flags: Provide practical training so your team can recognize the signs of fraudulent fundraisers. Encourage staff to independently research and verify any charity or campaign before making a donation in the company’s name, whether prompted by email, phone call, or social media.

Use Verified, Secure Channels: Always contribute through the official website of a recognized charity or through established giving portals—never via random links in emails, text messages, or social media posts. Confirm website security (look for “https”) before entering payment details.

Maintain Public Transparency: If your business shares information publicly about charitable donations or sponsorships, conduct due diligence beforehand to validate that the organization is reputable and that your support is accurately represented. Keeping records of these verifications can be valuable during compliance reviews or audits.

Monitor Outcomes and Follow Up: After making a donation, periodically review impact reports or updates issued by the charity to confirm that your funds are being used as intended. Many reputable organizations publish annual impact statements or detailed financial reports—review these to ensure alignment with your expectations and provide feedback if necessary.

By implementing these safeguards, your company can give confidently while minimizing the risk of fraud, reputational harm, or compliance concerns. Careful oversight not only protects your business—it also strengthens community trust in your brand’s commitment to responsible giving.

Keep Your Holidays Generous – Not Risky

The holidays are a time to give back, but also require heightened diligence to protect your business. By implementing clear procedures and practical training, you help ensure every act of generosity upholds your company’s standards and safeguards your reputation. Encourage staff to question unexpected requests—whether it’s a fundraiser, a donation appeal via email, or a payment request that seems just a little off. Empower your team to verify before donating or approving payments, so your goodwill is never exploited.

Want to make certain your workforce can spot and stop these holiday scams—be it a fraudulent charity drive, a phishing email masking as a cause, or a suspicious payout demand? Schedule your complimentary discovery call with Securafy Inc. today.

Because the greatest gift you can give your business, your employees, and your community is the confidence that every contribution is secure, every transaction transparent, and trust in your brand remains uncompromised.