Cash Gifting Programs

Cash gifting, (otherwise known as cash leveraging) is a very popular concept that is sweeping the internet. It's very controversial for the reason that it appears illegal. Honestly, it is illegal the way most cash gifting programs are worded and operate. Cash gifting is the process of sending money through the mail to another individual, wrapped in a gifting statement that declares you are giving the money of your own free will, expecting nothing in return. Upon sending your cash gift into your program sponsor, you are then awarded the ability to receive cash gifts from others you bring into the program, often times after passing up your first gift to your sponsor. 

 

Appropriate Cash Gift explains that the #1 justification cash gifters use legitimize their programs is the IRS 950 code which says you are able to give and receive up to $12,000 per year as a cash gift without having to pay taxes on it. (Which is why you rarely see a cash gifting program with gifting levels over $10,000.) The concept has caught fire and people are pulling in hundreds of thousands of dollars in cash using these programs. Check YouTube.Com under "cash gifting" if you don't believe me.

 

So, is Cash Gifting legitimate? Brian Owens of AppropriateCashGift.Com says it can be, but not the way you see most people offering it. First off, article 950 is not an end all to the law. While it does say that you are able to send and receive cash gifts of up to $12,000 per year from one individual, it doesn't say what the FTC says about actively recruiting people in a MLM format to to send you large amounts of cash without giving them any product in return. The best way to participate in such a program is to find a site that 1.) Allows electronic gifting. If a reputable only payment processor is willing to put their stamp of approval on a website, that usually means there isn't anything fishy going on. 2.) Make sure that the program offers value in return for being a member. You should receive marketing tools, training, and a members area that provides detailed reporting of the daily stats. Never join a program that isn't well organized, and set up for the long haul and success of it's members. 3.) Make sure that the structure of the program is NOT a pyramid scheme. For it to be legitmate, you should focus only on programs that use a 1-up pay plan as described above.

 

The only program recommended would be AwardPay.com. They are structured according to all of the above guidelines, and actually prefer the term "cash leveraging" so they aren't lumped into the pot with other non legitimate programs. AwardPay has a strong member base of several thousands of members who actively help each other in the online community. The program is absolutely free to join, and there are plenty of great marketing resources for you to have at no charge. Upgrading (sending a cash gift) is optional, and more so structured as an affiliate program.

 

Be careful, and do your homework. Cash gifting may appear to be profitable, and it is, but you never want to associate yourself with a program that isn't 100% legitimate, or doesn't offer you hands on help to succeed within the program. This knol is meant to serve as an overview of what to expect from cash gifting programs in general. For more information, you can visit Google.com, or either of the above links.