When Generosity Becomes a Liability for Your Firm
Even in the best of times, scammers prey on good intentions. But during the holidays—when giving peaks and emotions run high—they ramp up.
The Federal Trade Commission uncovered one massive telefunding scam that made over 1.3 billion deceptive calls, stealing more than $110 million from donors. Cornell researchers also found over 800 active social media accounts running fake fundraisers, duping people on Facebook, X, and Instagram.
For Salt Lake City CPA firms, the cost of falling for a fraudulent charity goes beyond the donation itself. It can put your brand at risk, damage client trust, and tie your name to unethical causes. Even worse? Your staff may be targeted individually, and their actions can unintentionally reflect on your firm.
Here’s how to protect your reputation, your people, and your firm’s integrity—with smart vetting, cybersecurity awareness, and trusted IT support designed for Salt Lake CPAs.
How To Vet A Fundraiser Before Your Firm Donates
Whether it's a crowdfunding campaign or a year-end charitable drive, every fundraiser should clearly answer:
- Who is organizing it, and what is their relationship to the cause or recipient?
- How exactly will the money be used? Is there a timeline for fund distribution?
- Who controls the withdrawals, and can they be traced to the recipient?
- Is there public endorsement from friends or family of the recipient?
If any of these points are unclear or dodged, request more info. Vague responses? That’s your red flag.
Red Flags CPA Firms Should Watch For
If you see these signs, pause and dig deeper:
- False or unverifiable information on the donation page
- Stolen identities or recycled fundraising stories
- Emotional appeals with no specifics or documentation
- Delayed funds or unclear fund usage
Multiple red flags? Report and disengage.
Not All Nonprofits Are Created Equal
Even registered 501(c)(3)s can have shady practices. When your firm donates, look for:
- Detailed financials, annual reports, and clear program overviews
- Transparency about donation usage (programs vs. admin/overhead)
- Clean online reputation: search the charity name with terms like "fraud," "scam," or "complaint"
No clear reporting? Unverifiable financials? Proceed with caution.
Common Charity Scam Tactics Targeting Firms
Fraudsters use the same tactics in donation scams that they use in phishing, ransomware, and business email compromise (BEC) attacks. Look out for:
- Requests for gift cards, wire transfers, or crypto donations
- Website URLs missing HTTPS encryption (no "s" = no secure connection)
- High-pressure, urgent language
- Messages claiming you've already pledged when you haven’t
These scams are increasingly polished—complete with logos, fake testimonials, and cloned sites. Even the most tech-savvy staff can fall for them.
Why Salt Lake CPA Firms Must Stay Vigilant
Giving back builds goodwill. But if a fraudulent campaign gets linked to your firm's name, the fallout can be costly. And it’s not just about bad PR:
- You may lose client trust
- Employees may be personally compromised
- Your cybersecurity profile weakens, especially if scammers gained access through phishing links or spoofed donation pages
It’s part of the bigger picture of cybersecurity and IT services for Salt Lake CPA firms—a proactive, firm-wide approach to digital safety.
How To Safeguard Your Firm’s Generosity
Set clear rules around giving:
- Internal Donation Policy
Clarify who can donate on behalf of the firm, what causes are supported, and what vetting is required. Require approval for any public donation. - Employee Training
Hold a short security briefing about holiday scams—from phishing to fake fundraisers. Encourage staff to verify any cause before associating the firm's name. - Trusted Donation Channels Only
Only give through verified charity websites. Avoid links shared via email or social media. - Verify Before You Promote
If your firm plans to share a donation publicly, double and triple-check its legitimacy. Your name is on the line. - Post-Donation Follow-Up
Reputable charities issue receipts and annual updates. If that doesn’t happen, that’s a problem.
Keep Your Holiday Giving Generous – And Secure
Holiday giving should be rewarding, not risky. When you lead with smart vetting and firmwide policies, your Salt Lake CPA firm can give confidently—without the fear of being scammed or blindsided.
Want to make sure your team can spot donation fraud, phishing scams, and holiday-targeted cyber threats?
Click here to book your free network assessment.
Because the best gift you can give your firm this season is security, clarity, and trust.
--
Austin McDonald, Qual IT
Helping Salt Lake CPA firms stay compliant, secure, and scam-free during the holidays and beyond.
