Cash Gifting - Legal or Not??

Discussion in 'General Advice' started by mountainmom5, Jun 11, 2008.

  1. mountainmom5

    mountainmom5 Gold Member

  2. marion1050

    marion1050 New Member

    Cash Gifting programs are illegal - but it is amazing that so many people don't know this!

    Hopefully the article will help correct this somewhat.
     
  3. opendomain

    opendomain New Member

    ...wow.

    I kind of thought this was jsut plain old commno knowledge. I am shocked to learn how rampant this is in certain areas.
     
  4. million2

    million2 New Member

    Several months ago I joined a cash gifting program, my gut feeling was not good about this,but I joined. True enough I did not pursue it as I just had a very uncomfortable feeling and could not do it,even though my sponsor was so very convincing. I was told it was legal,but I am so glad I followed my instinct.
     
  5. cashgift1000

    cashgift1000 Guest

    Yes Cashh gifting is very legal.. I've been in a close to six months and made plenty of money. Im still not in jail[​IMG] j/k I've done my research guys.


    [Link removed - Admin]
     
  6. getagrip

    getagrip Gold Member

    Just go to ripoffreport.com and see what comes up for cash gifting.
     
  7. CSGWAHM

    CSGWAHM New Member

    Thanks for the article! I saw it on another work at home site I frequent. It seems to be running rampant as another poster stated. I would stay far away from this type of thing.

    Million2......Good idea listening to your gut instict. Glad you got out of it.
     
  8. TJamMoneyMan

    TJamMoneyMan Well-Known Member

    This post is about one article, being presented as an answer to the title of this thread 'Cash gifting, legal or not??'.
    But that article is about PYRAMIDS, not 'cash gifting'!

    They are not the same thing.
    There is not even a good definition of what 'cash gifting' is or is not, as far as I can see.

    Pyramids yes, are illegal.

    Please show which cash gifting plans are illegal.
    NOT pyramids!

    Who has been prosecuted etc for cash gifting.
    What plan, what website, what individuals?
    What court case?

    What law specifies cash gifting as illegal?
     
  9. joanpeterson

    joanpeterson New Member

  10. BobFirestone

    BobFirestone New Member

    TJamMoneyMan: But that article is about PYRAMIDS, not 'cash gifting'!

    They are not the same thing.
    There is not even a good definition of what 'cash gifting' is or is not, as far as I can see.

    Pyramids yes, are illegal.
    Lets see...
    This is an excerpt from - PREPARED STATEMENT OF DEBRA A. VALENTINE, GENERAL COUNSEL FOR THE U.S. FEDERAL TRADE COMMISSION on "PYRAMID SCHEMES": Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.

    read the full statement at

    Cash Gifting... Lets see...
    Paid only for recruiting? Yes
    Real investment made? No
    Real sale of goods? No

    So yes all cash gifting programs are pyramids so there fore all cash gifting programs are illegal.

    Most prosecutions are done on the state and county level and don't get a lot of press coverage. The one I can think of off the top of my head was Women Helping Women out of Sacramento California.

    The unfortunate reality is most of the promoters of these programs never face prosecution because of the speed that they are set up and fail and most people who lose money in these schemes don't report the crime because they feel stupid.

    The IRS is only concerned that you pay taxes on the money received. The wording that makes legitimate cash gifts tax free is that there has to be no expectation of anything in return. Organized cash gifting programs obviously people are expecting a return on their money and no disclosure you sign is going to change that fact. It would be like a hooker having customers sign a piece of paper saying they weren't paying for sex they were paying her to leave after.
     
  11. Andy3568

    Andy3568 New Member

    Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.
    OK, what confuses me is this. He uses the word, "primarily," not "only." Since he uses the word "primarily," it seems he is talking about every MLM company out there since most people recognize the profits come "primarily" from building your downline, i.e. "recruiting others to join their program."
     
  12. BobFirestone

    BobFirestone New Member

    Andy3568: Since he uses the word "primarily," it seems he is talking about every MLM company out there since most people recognize the profits come "primarily" from building your downline, i.e. "recruiting others to join their program."
    It is unfortunate but "most people" are usually wrong especially when it comes to MLM. In a legitimate MLM the money doesn't primarily come from recruiting it actually comes from the sale of goods.

    For example the company I work with offers multiple packages to get started they are priced @ $30, $300, $600, $1,000 & $3,000. The $300 is actually $30 for a distributer kit and $270 worth of product. The $30 is for only a distributer kit.
    I only get paid when product moves. On the $300 pack I make $33. On the $30 kit I make $0.
     
  13. I think cash gifting is a scam and anyone who joined this kind of program, will eventually loose his/her money or will try to scan others.
     
  14. getagrip

    getagrip Gold Member

  15. TJamMoneyMan

    TJamMoneyMan Well-Known Member

    getagrip: Here is a good thread on cash gifting:

    CASH GIFTING SCAM- The Bad, The Worse, The Ugly

    Sorry, GetaGrip.
    You regularly post some very good information, but this is just a link to another WAHF thread (not that that in itself is a bad thing!!).
    But people have been posting LOTS of misleading information about cash gifting in these threads here at the WAHF.

    The anti-cash gifting group seems to be firmly attached to their idea that all cash gifting plans are illegal.
    They then post the same tired, irrelevant links that have nothing to do with cash gifting.

    Their ego has completely closed down what should be a rational, clear thinking OPEN mindset, in an effort to protect their biased viewpoint.
    Sorry for the Psycho-babble, but I think this is obvious!

    I am still waiting for someone to show where ANYONE was convicted of the 'crime' of cash gifting.
    Not pyramid, ponzi, tax evasion etc...

    Come on folx!
    Cash gifting is SOOO illegal, 'pure and simple'.

    So where is the proof?
     
  16. BobFirestone

    BobFirestone New Member

    TJamMoneyMan: I am still waiting for someone to show where ANYONE was convicted of the 'crime' of cash gifting.
    Not pyramid, ponzi, tax evasion etc...
    They were convicted of running a pyramid scheme because that is what cash gifting is!

    Explain to me how an organized cash gifting program is not a pyramid scheme?
     
  17. TJamMoneyMan

    TJamMoneyMan Well-Known Member

    BobFirestone: They were convicted of running a pyramid scheme because that is what cash gifting is!

    Cash gifting is not necessarily a pyramid scheme.
    Please do your own research and discover exactly what a pyramid scheme is.

    Many online and other business models use a pyramid structure.
    That in itself does not make it an ILLEGAL pyramid structure.
    There are determinations about what makes a pyramid structure illegal.
    One of the main factors is that there is NOTHING offered but a place in the pyramid, in exchange for the money you give.

    I am not going to explain these things to you.
    It was EGGZACKLY one hour from the time I made my post, until your reply(!).
    Please take time to research before you post a reply!

    There are sooo many posts here at WAHF by folx more knowledgeable than I.
    If you had taken the time to search and review some of them, you would have an answer to your questions.

    Just do the research, and think for yourself.
     
  18. BobFirestone

    BobFirestone New Member

  19. TJamMoneyMan

    TJamMoneyMan Well-Known Member

    BobFirestone: You put money in with the expectation that more people will come in after you and give you money. That is a PYRAMID SCHEME!!!
    First look up the definition of what a pyramid structure is and what makes it illegal.
    Then show which CG plan violates that and how.
    Feel free to use what I am promoting as an example.

    While you're at it, learn how to post a link here at WAHF:
    http://www.michigan.gov/ag/0,1607,7-164-34739_20942-201450--,00.html

    Because right now you are posting the same misinformation as everyone else.
    Learn about and post something different if you want to be productive.
     
  20. BobFirestone

    BobFirestone New Member

    If you are right and I am wrong explain exactly why the cash gifting program(s) you are promoting are not pyramid schemes.

    Show me the difference tell me why the Attorney general of the state of Michigan is wrong?
     

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