Is Cash Gifting Legal or Just a Money Scheme?
Is Cash Gifting Legal
Today I’ve decided to tackle the controversial question in the home business industry…Is Cash Gifting Legal? It’s really a fascinating topic, I think, so I’ve done some research and wanted to share my findings with you.
Why did I choose to do this?
Ever since I got involved in the network marketing/home based business industry back in 2009, I’ve heard about cash gifting and seen the arguments between the 2 sides…”Yes, Cash Gifting is Legal” and “No Way is Cash Gifting Legal“. There is never anyone sitting in the middle of this debate! So who’s right?
One of the biggest reasons that I wanted to write on this topic is I get a lot of daily traffic to my blog from an article I wrote on the Cash Tracking System. I also get some traffic to an article I wrote on another popular Cash Gifting program called The Peoples Program. This tells me that there are a lot of people interested in the Cash Gifting activity as a potential income producer or, dare I say, business opportunity. So what’s the deal?
First of all, here’s a description of the cash gifting activity…By definition Cash Gifting (also referred to as “Cash Leveraging”) is the act of privately or publicly giving another person or entity a declared sum of cash, strictly as a gift and giving it freely without coercion or consideration. It is NOT a “quid-pro-quo” transaction where you offer something of equal or considerable value in exchange for cash. That would be NOT be considered a true cash gift.
We know that, at least in the US people are allowed to “gift” up to $13,000 per gift to anyone they want without tax consequences. Now, I’m not a lawyer or accountant but that tells me that cash gifting is legal.
The issue, and negative connotation, arises with cash gifting pyramids – these are usually matrix programs where people not at the TOP do not have a fair opportunity. These typically fizzle out leaving many out in the cold.
From my research, a “legal” cash gifting activity has a 1-Up compensation plan. This type of plan, besides being potentially very lucrative, is not pyramidal in nature. It doesn’t matter when you join. Everyone has the same opportunity to earn “gifts”. The last person in can out earn the first person. This is the case with most top tier direct sales businesses as well. That’s the way it should be in my opinion!
The biggest issue people have, when trying to determine if cash gifting is legal or not, is the fact that there’s no product. I don’t see that as an issue at all. Let’s face it, there are a lot of direct sales and network marketing businesses that just have some crappy eBooks or Digital products to “legalize” their program. Some are top-tier direct sales programs costing $1000′s for way overpriced products. What’s better? Then, you have to overcome the objection of “I don’t like your product”. Having no products has it’s advantage
It’s taken me a while to come around but I have. I’m here to tell you that I have no doubt that cash gifting is legal. It’s just another form of “program” that exists to help people earn income with their own home business.

























