If you find yourself searching for the top cash gifting programs, I understand your curiosity. However you first need to find out if cash gifting programs are legal. People get really confused about this because of the way that these programs are promoted online.
I totally get it. The possibility that people are receiving “Yearly Salaries Delivered Daily. In Cash. By Overnight Courier. 6 Days A Week”, is appealing right? Who wouldn’t want easy money.
Top Cash Gifting Programs What Is The Best Program
I did a quick search for the best cash gifting programs and found that there isn’t a shortage of opinions about these programs. The weird thing though about the search results was that I really didn’t find the top or best gifting programs lists like I thought I would.
Most search results basically were a review of the particular gifting program that the author was part of and promoting.
Don’t get me wrong there is nothing wrong with promoting something online if you believe in the product.
I did see one site that had a list of cash gifting programs. I thought I would click through each program and read about what they had to say about them. The best programs list contained the following programs reviews:
- Cash Tracking System
- Magnetic Cash Gifting
- Business Success Alliance
- Synergy Wealth System
- The Peoples Program
- Cash Arrives 365
- TIDOM Business
What I found though was the whole review was just the one small paragraph written under each program name. Not very helpful at all. So I decided to change research tactics and find out if these types of cash gifting programs are even legal.
The Legality Of Cash Gifting
The first thing I discovered when looking into if cash gifting programs are legal or not was a link to my State’s former Attorney General. I currently live in Michigan but I suspect that this information would be pertinent for your state as well….just sayin.
This quote was found on Michigan.gov under the heading of “Consumer Alert”:
“Cash gifting schemes are presented in an endless variety of ways – including schemes targeting NASCAR fans, or “socially conscious women.”
No matter how these schemes are presented, the bottom line is the same for all – cash gifting schemes are illegal in Michigan. This consumer alert will provide Michigan consumers with information on how to spot illegal cash gifting scams, and what to do if they believe one of these scams is operating in Michigan. “
Is Cash Gifting An MLM Or Pyramid Scheme?
The AG goes on to state the difference between Multi Level Marketing (MLM) and Pyramid Schemes. The most blaring difference is that MLM’s have distributors that get paid for selling product.
Yup they are still strange programs set up with uplines and downlines and group volume and personal volume and so forth but they are indeed legal in Michigan. After all Michigan is the home of Amway and the (now) billionaires that started it.
The Difference Between An MLM And A Pyramid Scheme
The most obvious difference between a legal mlm and an illegal pyramid scheme is that the mlm’s participants are for the most part paid out based on the amount of product sold.
An illegal pyramid scheme’s participants are paid out based on the number of people or recruits that they bring into the program. Keep in mind that there is no product but there most likely will be a fee to join.
Cash Gifting Is Just Another Type Of Pyramid
Here is what the Michigan AG determined about the legality of cash gifting (at least in Michigan but most likely in your state too):
“Cash gifting schemes are the quintessential example of a pyramid scheme. Instead of selling products, cash gifting schemes forego the sale of products and just give people cash, but the premise is the same – like other pyramids, cash gifting schemes are based on the amount of people recruited.
Generally, these gifting “circles,” “clubs,” or “groups” encourage participants to pay a substantial entry fee (which can range anywhere from $500 to $5,000 or more). This entry fee will guarantee the participants a place on a chart of members. The participants will move on the chart every time they recruit more people into the “circle” or “club.” And once the participant moves enough on the chart, they are “guaranteed” a large payout. Gifting schemes operate under a variety of names, as con artists that start these schemes are endlessly creative in their quest to con a lot of people out of a lot of money. But most gifting schemes follow the general pattern outlined in this alert.
Pyramid schemes, including cash gifting schemes, can become popular very quickly, because early participants often receive their payout as promised. Those participants that receive their money then relay their success stories to prospective participants, and the cycle continues. The problem is that eventually the pool of new participants runs out, and the pyramid collapses, and very few participants actually receive any money. Once a pyramid collapses, everyone, except the initial con artist that started the scam, will have limited prospect of ever getting their money back. “
Wait I thought I Could Give Money To Whomever I Choose
Ok this confused me at first too. After all I am sure that most of us has received money for Christmas, or another holiday, or maybe for your birthday from Great Aunt Bertha.
Is this illegal? Are the po po going to come and arrest old Aunt B and throw her in the clink?
What Aunt B did by giving you money is different. She is not part of a program that isn’t selling anything and she is not recruiting people into some old lady club that pays her for her recruits.
Just because good old Aunt B gave you money and doesn’t belong to an illegal pyramid scheme it doesn’t mean she is off the hook. Although she most likely is. That is unless she “gifted” you something of value worth more that the IRS annual exclusion which in the current year is $15,000.
Good for you if Aunt B gave you that much!
Are Cash Gifting Programs Scams?
Yup they primarily pay for recruitment into the program.
Is Cash Gifting In Itself Illegal?
Nope, that is unless you go over the IRS’s annual exclusion amount and don’t pay the gift tax due.
If I just ruined your day by letting you know the truth about cash gifting I’m sorry but just know that there are other ways to make money online.
I wrote a post about the program I belong to and used to learn how to make money online (yup this is a legal program and NO it is not an MLM and you don’t have to pay to join it)
Go ahead and read the post and if it appeals to you sign up for a free account (no payment info needed), and take it for a test drive. If you see the value in the program you can upgrade to a premium account but you don’t have to. You can keep your free account as long as you like….no pressure.