Ok, I already know that some people are going to call me an idiot or that I have no idea what I am talking about, but I am just going to say it…Cash Gifting is illegal in my opinion and I hope you won’t get scammed like many others did.
So what is Cash Gifting? Well, it’s basically a pyramid scheme where you give cash “gifts”…lol…to other participants in order to join the program. Let’s face it you are joining because you expect to make money from it. Please don’t tell me that you are just giving some stranger money for nothing because that’s basically bullshit.
Cash Gifting used to be an offline scam where people would meet and exchange cash. Many of those groups got arrested and went to jail. Now cash gifting entered the online market, so it’s basically still illegal because there is no difference. Anyway, the only reason why FTC is not doing anything yet is because it would be too hard to track people down. They are all over the country sending each other money through UPS and Fedex.
Here is what really bothers me. You see, some of those cash gifting participants called IRS and recorded the message asking them if it’s illegal and got an answer that it was fine…lol..I imagine that the phone operator didn’t really know much about it and was caught of guard with that question.
Another thing about this whole cash gifting is that people are posting videos all over the web showing how much money they made using those programs. I am sure you have seen some of them showing envelopes with cash. If you didn’t then go to YouTube and search for “cash gifting”. You will find hundreds of them.
Now if you ask any of those people that are in cash gifting business about the legality of it, they are going to say that it’s perfectly legal. They are going to show you some recorded messages with IRS or some other BS to get you into the program. They also make you sign this little piece of paper stating that you don’t expect anything in return and that you are basically just giving them money..lol
I called a lawyer here in my local town and he said that the little paper would NOT hold in court by the way, so keep that mind.
Anyhow, the law says that you can give up to $12,000 tax free to someone. This is mistaken by those in the cash gifting programs because they are using it to make money. The whole purpose of someone joining a cash gifting program is to earn money and not lose it by giving away cash. Come on people, wake up!
Here is some more stuff from MLM Watch Dog that I think you should read too.
Here is how most of the Cash Gifting programs operate online. Usually it’s a 1 up where you pass up your first “gift” 
to your sponsor. Then after that you keep all the gifts and those need to pass up their first to you too. So with that said, you can see that you will need to promote it all over the web and get people to the program. At the end there is always someone that doesn’t make money so they lost in this whole deal. As you can see you need to constantly get new suckers into cash gifting programs otherwise you won’t make money and that’s why you would join one anyway.
I say that cash gifting programs are illegal and it’s just a matter of time before the authorities catch up with them. I highly recommend that you stay away from them and save your money. There are a lot better ways to make money online than cash gifting.
Feel free to post your comments below, but I have to warn you that I won’t approve any comments with profanity.
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{ 7 comments… read them below or add one }
I don’t know if gifting is illegal or not… but it’s DEFINITELY a scam. I have tried several of these schemes of the years and the most I’ve ever earned is $5. It’s like most MLM… the people at the top make all the moneya and the poor shmucks at the bottom of the pile get nothing. Regardless of what name you put on it, it’s still a ponzi scheme. There are better ways to make money online than “gifting” your money away.
Steve,
I love hearing people say everything is a SCAM when they do not make money. I have seven programs at my blog. One is even cash gifting. I make money on ALL seven programs and I do it every day! The reason you failed is you DID NOT learn how to market. Plain and simple. Learn how to market online and you might not ever scream SCAM again!
Brad
You mean he didn’t learn how to get other suckers to send him cash?
Old cash gifting programs were illegal because they controlled the gifts and sent them out, meaning they handled over 12,000 dollars worth of gifts per person in one year. The law states you can gift any person up to 12,000 dollars per calendar year. Check out my video
i disagree for one reason. i am not part of this. nor will i fall for it. it is a scam. however, if people are stupid enough to give away money with something like this. it is just that. stupidity. how is it any more illegal than the preachers asking for a 1,000 seed gift to be sent to a certain church? it isn’t. whether people expect to make money or not. they are just plain old suckers and that is what is preyed on. stupidity.
First of all.Why are people so quick to call something a scam if they don’t make money.We are all entrpreneurs and have been unsuccessful at something.Just because WE don’t make money doesn’t make it a scam.Now,I am also a little leary about cash gifting but one thing I don’t understand is if it is illegal why are there countless videos on youtube with people opening up tons of cash who display all of there personal information and not get in trouble?This guy Scott Miller is all over the net and in every magazine around surely if it was illegal the authorities wouldn’t let him go around stealing everyone’s money,right?
A friend of mine has bought into a “cash management system”. $3,500 and then he finds out that the organizers advise him to buy lists of possible prospects. $200 for 100 names. Plus $35 a month for web site hosting. The entire approach is to find someone, person A, to give your upline money so that they then have the right to find someone, person B, to give you money so that person B then has the right find someone to give person A money in the hopes that they, person B, will get money … etc etc. And nothing ever gets bought or sold. Its illegal, but try telling my friend that. Not a chance.