Are Cash Gifting Programs Legal?

By Author: Cherie :)
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If you have heard about cash gifting programs, then you, like many others, may be wondering, "are cash gifting programs legal?" The short answer to the latter question is "yes," but a longer answer to the question "are cash gifting programs legal," would be that it really depends on the cash gifting programs one plans to work with. There certainly are myriad cash gifting programs available for people to participate in but not all cash gifting programs are legal, legitimate, and genuine offers.
When people hear of the term cash gifting programs it frequently stirs up a concept and notion of illegal and/or fraudulent pyramid schemes. Regrettably, the negative connotations associated with the plethora of pyramid schemes currently in existence have tarnished the reputation of legitimate and promising cash gifting programs and have diminished the respectability of such programs considerably without due or rightful cause. It seems that cash gifting programs have donned on a negative reputation through a guilt by association process which is based on fallacies, falsehoods, and misconceptions.
An intensified examination ...
... of high-quality cash gifting programs reveals a number of truths that few people fail to realize; firstly, that the composition of bona fide cash gifting programs has absolutely nothing to do with pyramid schemes. The striking dissimilarity between pyramid schemes and cash gifting programs exist in the fact that cash gifting programs are linear programs while pyramid schemes clearly are not linear in terms of their functioning. The true benefit in cash gifting programs is therefore derived from the fact that all participants are treated equally and receive equal benefits from the program. This is in arresting contrast to today's pyramid schemes which allow only a few individuals to benefit and leave the remaining participants at a great disadvantage or with nothing at all in terms of profit. In addition, pyramid schemes are short-lived because of their volatile, increasingly narrowed financial structure and weak composition. Secondly, it needs to be duly noted that cash gifting programs have not been prohibited by law whereas pyramid schemes have been completely banned. This immediately answers the question, "Are cash gifting programs legal? Due to their linear structure and promising results cash gifting programs are, indeed, legal.
Today's cash gifting programs deliver to people a number of advantages. The ability to turn a profit without overhead, without inventory, and without the pressure to sell products is just a few of the extraordinary benefits one derives from participating in a legal cash gifting program. When a legal and genuine cash gifting program is discovered, the individuals that participate in them have a beneficial financial prospect within their reach. Legal cash gifting programs can be identified by their reliance on gifting statements: documentation that clearly defines the role of the cash gifting program participants.
Another of the many misconceptions associated with cash gifting programs is the notion that existing tax laws do not support their practice or use. Yet, according to IRS Publication 950, the answer to the question Are cash gifting programs legal, is indeed affirmative, and up to a certain value, gift giving is not a taxable process. Publication 950, recently amended in 2007, asserts that it is possible to give a gift valuing as much as $12,000.00 to as many people as one would like to in a given year without the consequence of gift tax. Thus, as long as all gifts received remain within the solidly established IRS laws and every gift remains below the $12,000.00 maximum set forth by the IRS in Publication 950, then the cash gifting program is deemed legal. With the primary gifts delivered in cash gifting programs consistently ranging from a couple of hundred dollars to a couple of thousand dollars, individuals have little to be apprehensive about in terms of violating IRS restrictions or other laws.