Cash Gifting Programs Are NOT Legal

Cash Gifting Programs Are NOT Legal
by Zig Noda

What is “Cash Gifting” and is it legal?

Cash gifting programs are the rage online right now. People are sending anywhere from $100 to $3000 cash and MORE to total strangers.

Usually the “sender” of the cash gift sends the cash to another person on a website after visiting thier website filled with videos and testimonials of how much money the “receiver” is making with “cash gifting”.

In return the sender expects to receive “instructions” or a “system” of how to also do the same, and also “receive gifts” from others. The sender usually also pays for some sort of admin fee for a “marketing website” so that he too can market themselves in the lucrative endeavor of cash gifting.

To get away from the fact that the sender is being solicited by the receiver’s website the sender is usually also required to send a pre formatted “gifting statement” and “non soliciation letter”. This is a thin veil of legal protection.

The “gifting websites” usually have some excerpt from the IRS code in regards to estate and gift taxes to “prove” that gifting is legal. But somehow they forget to mention that they are soliciting others to give. In addition, in most cases the giver expects to receive (and usually pays extra for) a similar marketing website and “instructions” or “support” or “marketing” methods such as leads, or advertising support or other marketing resources to get their website read by others.

So in summary “cash gifting” is just an expensive online version of a chain letter which falls under “mail fraud”.

It’s true that giving gifts of cash to others is legal. However marketing oneself to receive such gifts is ILLEGAL and no stack of signed “gifting statements” or “non solicitation” letters will protect the person otherwise when the law begins to crack down on program operators and participants.

So the bottom line is giving others a cash gift itself is legal but soliciting others to send you cash in “cash gifting” programs and operating such or similar programs is ILLEGAL. Using excerpts from IRS code that pertain to estate and gift taxes is irrelevant and can be construed as attempting to defraud others into thinking they are getting involved involved in a legal activity. Instructing them to sign a “gifting statement” and/or “non solicitation letter” and then have them send money through the mail or wire it or send it online electronically can fall under the broad category of mail fraud.

Here’s an analogy: you can buy prescription drugs from a drugstore. You can even take them yourself, but if you try to sell them to others online or offline you could get busted.

You can even give and loan money to others no problem, but if you try to start your own “bank” online and charge people fees for opening accounts chances are you will be in violation of banking and securities laws.

Get the picture?

My prediction is that within 24 months after this post if not sooner you will see headlines of AGs (attorney generals) and FBI, and other law enforcement cracking down on online cash gifting programs.

Final note and disclaimer: this post is going to tee off a lot of people and discussion online about the “legality” of cash gifting programs. I am not an attorney and do not claim to be one, but I do know a few attorneys and I still have not heard of any reputable attorneys being involved personally with such programs. (These programs usually say that their documents or programs were reviewed by attorneys…LOL).

Final thought to consider on this topic: History has proven that these types of money schemes come and go until they are in legal hot water. It’s just a matter of time before you will see program operators getting busted and the general consensus online that CASH GIFTING IS NOT LEGAL: CASH GIFTING IS ILLEGAL.

SIDE NOTE: It should be called “Cash Receiving” not “Cash Gifting”. Is “cash receiving” illegal?

Receiving cash from total strangers is legal until you try to sell the idea under the veil of a “legal” cash gifting program, and try to use some irrelevant excerpt from IRS code to prove that it’s a legal activity. Oh yeah, it becomes very illegal when you try to sell someone the idea to “give” you cash and to tell them you’ll teach them too how to get others to give them cash too and you’ll even provide them a website just like yours to help them do it.

It’s just a matter of time…

Sung to the manner of the Rolling Stones…

“Time…is NOT on your side. No it’s not…Time…is NOT on your side…”

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