I have to be honest with you and let you know I am a fan of these types of programs but it is important to do some due diligence before one gets involved. So what is the real deal? Are gifting programs legal? What is their Structure? Can a person benefit by being involved? How are they promoted? What is the downside? These are a few concerns that need to be addressed at this point.
The concept of gifting has been around forever. The idea of the golden rule which says, Do for others as you would want them to do for you. The idea here is that a person gives a gift to freely to another, expecting nothing in return. This parallels the bible verse that says – Give and it shall be given to you, pressed down, shaken together and running over, shall men give unto you – I have to tell you – it really works! It works because it encapsulates a basic principle that the God of the Bible put into place.
Where do you find these clubs? They are not hard to find! If you do even a simple search on Google and put in the words – gifting programs – you will find programs that ( if you do your due diligence ) have really faltered, are not working or have become so unworkable that for all intensive purposes they are not worth getting involved with. You will find other programs that are doing quite well and folks find themselves reaping some big harvests of money. There are many programs that prefer not to operate on the internet but are very good, workable programs.
Gifting programs are not Companies or Corporations or any kind of legalized entity. One of the first questions that inevitably come up is whether gifting programs are Ponzi Schemes or Pyramid schemes. It is possible that some of them are but it is not hard to figure out if you ask a person that is involved how the structure is built. Ponzi and Pyramid schemes are set up like a triangle such that the people at the top, the first people involved, always get the most money.
Pyramid and Ponzi scams derive their money from funds that comes from lower in the triangle. What happens is that eventually the system caves in when people near the apex of the triangle begin to realize that the flow of funds has stopped. About the same time a craze begins to find more and more people to fill the ever widening spots at the bottom of the triangle to bring in new cash to quiet the people higher up. One quandry is that the poor soul at the bottom never has a fighting chance to work up through the ranks through hard work or investment of big money.
Gifting Clubs by and large are not invesments of any sort. They are not registered with the SEC and they are not public offerings. They are private clubs by invitation only. The person that gets involved can give a gift to another in a stuctured way, if they so choose. Unlike an investment in which there is a contractual agreement for a promised return on a certain date, organized gifting is giving freely expecting nothing in return. But —- it just so happens that the vast majority of the time someone else within the structure is guided to give to the new giver so that they find themselves a bit wealthier than when they started in the program.
Are gifting programs legal? The short response is yes, As long as they are set up correctly. A few legal considerations are these, namely, structure ( which has been covered above ), the way the program is advertised and the issues of Income Tax. The heirarchy should be set up such that the last person ever to join still has a great chance of becoming a receiver of a gift of money. Some care has to been taken in regards to growing the program. There must be a strong understanding among club members that no guarantees are ever given to new folks and that personal invitation is the only way to enter the club. There is no problem with sharing the strong expectations that the gal or guy could have, but the verbiage should not use legal investment tones and should always transmit the idea of — giving freely but not expecting anything in return.
Here is how the issue of income taxes should be addressed. A US citizen should claim all gifts given to them on their tax return but should only expect to have to pay tax on any total annual gift amount from any one person of more than $ 13,000.00
Can Gifting Programs Make me money? Gifting programs can be a very helpful financially and a very quick way to pull out of the quicksand of debt. But, there are Lots of programs that for a tons of reasons such as administrative dishonesty, administrative disagreement, program stalling due to a decrease in member growth ( due to basic structure issue) that just fall apart and leave new folks with a thinner wallet than they had before. But Attention! They gave, expecting to receive nothing in return!
Bottom Line: Gifting programs can be a VERY good thing, just be careful which one you pick!