Holiday Donation Scams: How To Protect Yourself When Donating Online Safely

Even during the best of times, scammers are constantly looking for ways to exploit generosity. The holiday season, when charitable giving peaks and emotions run high, is prime time for fraudsters to strike.

In one of the largest telefunding scams ever uncovered, fraudsters made 1.3 billion deceptive donation calls and collected over $110 million from unsuspecting donors, according to the Federal Trade Commission. These schemes show just how sophisticated holiday scams can be and why vigilance is essential.

Whether you give online or in person, understanding the red flags of fraudulent donation requests can help you protect your money and ensure it reaches legitimate causes.

At the same time, a study by researchers at Cornell University revealed that on social media platforms alone, more than 800 accounts were involved in donation scams, steering unsuspecting users toward fraudulent fundraising pages on sites like Facebook, X, and Instagram.

For small businesses, a single mistake in charitable giving can cost more than just money — it can associate your brand with fraud, harm your reputation, and weaken the trust you’ve built with clients, partners, and your community.

Here’s how to evaluate fundraisers, recognize warning signs, and protect both your business and its goodwill this season.

How To Evaluate A Fundraiser Before Making A Donation

A trustworthy fundraiser should be able to provide clear answers to these key questions:

• Do the recipient’s close friends or family members publicly endorse and support the fundraiser?
• Who manages the withdrawals, and is there a transparent process ensuring the money reaches its intended recipient?
• Who is organizing the campaign, and what is their relationship to the beneficiary?
• How will the donated funds be spent, and within what timeframe?

If any of those details are unclear or missing, request clarification before donating. A lack of response or vague, evasive answers should be treated as a major warning sign.

Common Warning Signs Of Fundraising Scams

If you come across any of the following indicators, take a step back and look into the campaign more closely:

• Information on the fundraiser page that seems exaggerated, inaccurate, or deceptive
• Money not being directed toward the stated purpose within a reasonable time frame
• Someone pretending to be another person or reusing another individual’s story or photos
• Narratives that feel overly dramatic or designed purely to tug at emotions

If you notice several of these issues, it’s best to report the fundraiser and withhold your donation.

Screening Charities (Beyond Just Crowdfunding Campaigns)

Even well-known charities can sometimes operate questionably. Watch for these indicators:

• Detailed descriptions of programs, financial statements, and annual reports
• Clear explanations of how donations are allocated between programs and administrative costs
• Online mentions of the charity paired with terms like “fraud,” “scam,” or “complaints”

Missing information or unfavorable reviews are a strong signal to be cautious.

Typical Methods Used By Charity Scammers

Be alert for these warning signs:

• Requests for donations through gift cards, wire transfers, or cryptocurrency—real charities typically accept credit cards or checks.
• Websites that lack “https” (the “s” ensures secure data transmission).
• High-pressure tactics urging you to donate immediately, designed to bypass careful consideration.
• Claims that you’ve already donated or pledged when you haven’t—always verify before sending money.

Scammers can be sophisticated. Even professional-looking websites and persuasive headlines may conceal fraudulent intentions.

Why This Matters For Your Business

When your business donates to charity—whether publicly or behind the scenes—your generosity reflects on your brand. Contributing to a scam, or even having an employee give in the company’s name, can inadvertently link your reputation to fraud.

Even more concerning: The strategies used in charity scams—urgency, impersonation, and fake websites—often overlap with tactics targeting businesses, such as phishing, invoice fraud, and wire transfer scams. Training your team to recognize fraudulent fundraisers also equips them to identify broader types of scams that could threaten your business.

Protecting Your Business (And Preserving Your Goodwill)

Follow these steps to keep your giving secure and effective:

1. Establish A Donation Policy: Set clear guidelines for how and where your company donates, including approval limits.
2. Educate Employees: Train your team to recognize fraudulent fundraisers and to verify campaigns before donating on behalf of the company.
3. Use Reliable Channels: Make contributions directly through official charity websites rather than links in emails or on social media.
4. Maintain Transparency: If your business publicly announces donations, ensure the charity is legitimate and trustworthy.
5. Monitor Outcomes: After donating, confirm that funds are being used as intended (many charities provide impact reports for accountability).

Celebrate The Holidays Safely And Generously

The holiday season is a time to give, but it shouldn’t put your business at risk. Establishing clear donation rules and double-checking campaigns ensures your contributions make a real impact.

Teach your team how to spot fraudulent fundraisers, suspicious emails, or dubious payment requests before they act.

Schedule your free discovery call here

Because the most valuable gift this season isn’t money. It’s the peace of mind that comes from knowing your business (and community) are safe.