| The internet phenomenon of cash gifting is one | | | | arranged without appropriate planning and the |
| that is creating a high income and better lifestyle | | | | absence of the business element meant they |
| for many thousands of people around the world. | | | | eventually collapsed. As a result, cash gifting |
| However, for many others the term 'gifting' has | | | | programs generally received a bad reputation. |
| them immediately skeptical and cynical. They run | | | | |
| in the opposite direction claiming that it's a scam, | | | | Often in those early days, the tracking of money |
| unethical or even illegal. These opinions spread | | | | was done on manually. The result was the |
| quickly which result in gifting programs being | | | | members were unaware about the quantum of |
| viewed as corrupt and the people in them either | | | | pending gifts, nor did they have any idea when to |
| foolish or insincere. | | | | expect their gifts. Legal documents were not |
| | | | | shaped to give that legitimate touch to |
| There are several myths associated with cash | | | | cash-gifting transactions and members were not |
| gifting that need to be replaced by the truth. | | | | given adequate marketing support or any |
| But firstly, let's have a look at exactly what cash | | | | marketing leads. Members had to do everything |
| gifting is. In short order, it is 'the act of privately | | | | alone so many of them lost interest and gave up |
| or publicly giving another person or entity a | | | | because it became too difficult. |
| declared sum of cash (strictly as a gift) and giving | | | | |
| it freely without coercion or consideration'. This | | | | However, things are very different now and cash |
| activity does not involve commercial activity, | | | | gifting has emerged as a sophisticated business |
| company name, directors or shareholders. | | | | model nowadays with the advent of completely |
| Churches, civic groups and people around the | | | | transparent and ethical programs such as the |
| world have participated in organized gifting for | | | | Oversized Cash System (OCS). |
| over 300 years and governments allow its | | | | Programs like OCS are not only ethical, but |
| practice so individuals can share their wealth with | | | | highly sophisticated too - they revolve around |
| family, friends and others. Many cultures gift as | | | | sound business principles and use state-of-the-art |
| a means of helping and blessing others. | | | | software tools to track members' activity. They |
| | | | | know what's coming and this transparent flow of |
| So in view of all that, why is it that cash gifting | | | | information means the public are now returning to |
| has developed a bad reputation? In my opinion, | | | | the once-tarnished concept of cash gifting. |
| it is due to three main questions and I'd like to | | | | |
| address each of them… | | | | Sometimes it is the people already in the |
| | | | | programs who bring down it's credibility. In their |
| 1. Is it legal? | | | | marketing efforts they will concentrate entirely on |
| In a word, YES. The laws of most countries | | | | giving a good sales pitch without being able to |
| state that it is legal for individuals to exchange | | | | answer even the most basic questions about |
| gifts. In the United States, for example, there is | | | | what they are offering! People who are |
| the Preamble, the Constitution and the Bill of | | | | offered the 'you'll be rich tomorrow' lines are |
| Rights to protect a private citizen's rights 'to earn, | | | | naturally going to be upset when they realize that |
| pay taxes and give away property and cash as | | | | it's not as easy as they were told. The first |
| long as it is done according to the laws and codes | | | | thing these disgruntled members do is post a blog |
| of this country.' So, cash gifting is perfectly legal | | | | on the internet about the latest 'cash gifting scam.' |
| as long as it's done with appropriate | | | | So, it could be said that certain people involved |
| documentation and appropriate tax declarations | | | | in cash gifting programs are responsible for their |
| are made. | | | | own negative publicity. |
| | | | | |
| According to the IRS in the United States, the | | | | Another problem that has become apparent in |
| current law states that any individual may receive | | | | some programs is a lack of support and |
| from any single person a gift up to $12,000 in a | | | | direction. If you buy into an opportunity of any |
| calendar year without any tax liability to either the | | | | kind and don't receive with these vital elements, it |
| giver or receiver of the gift. The reason for this | | | | would be natural to feel like you’ve been |
| is because the tax on the gift has already been | | | | cheated. A cash gifting program is no |
| paid. The vast majority of participants in cash | | | | different. It is important in starting any venture |
| gifting systems give and receive amounts much | | | | that you are provided with marketing tools, |
| less than the individual limit of $12,000. The gifts | | | | administrative support and information on how to |
| range in value from $5 to $5,000 so with these | | | | use them successfully. The best programs will |
| values in mind, it is easy to see that participants | | | | also offer a forum where members can share |
| will be far beneath the ceiling set by the tax | | | | ideas and encouragement. I encourage anyone |
| department. | | | | thinking of starting cash gifting to research your |
| | | | | options and make this a high consideration in your |
| 2. Is it a pyramid scheme? | | | | choice. |
| In a word, NO. A pyramid is associated with a | | | | |
| company or a business. Gifting programs are not | | | | Finally, we need to remember that any online |
| companies, but rather a community of like-minded | | | | opportunity, including gifting is not a get rich quick |
| people working together. Everyone gives the | | | | scheme or a lazy path to wealth. Regardless of |
| same gifts, works together in team dynamics and | | | | what anyone tells you, it does take some time |
| receives the same gift. There is no structure to | | | | and effort to establish. Cash will not simply start |
| build or maintain. In a pyramid, only those at the | | | | growing on trees. It is earned through |
| top profit while those at the bottom never reach | | | | advertising, marketing and networking. The |
| the top. They are illegal and people have lost | | | | system works beautifully but unfortunately there |
| their money from participation in them. | | | | are many people who misunderstand what is |
| | | | | involved. Again, the result is that they claim to |
| The Oversized Cash System (OCS) in | | | | have been scammed and tell the world of their |
| particular can never be perceived as a pyramid. | | | | experiences. |
| The reason for this is that six months after a | | | | |
| member joins they must rejoin under another | | | | The most important thing I can suggest is to |
| member to keep promoting their link. So, no-one | | | | remain objective. Put aside the negative press |
| can ever stay at the 'top' and it becomes a | | | | and do your own research. Establish all the facts |
| continuously changing network that recycles | | | | before making any decision. Remember that |
| itself. No other system that I know of creates | | | | everyone is given the gift of common sense. If |
| such a fair environment and level playing field for | | | | your gut tells you that something is a bad idea, |
| everyone involved. | | | | then it probably is so don’t do it! |
| | | | | |
| 3. It is a scam? | | | | Cash gifting is an often misunderstood opportunity |
| This seems to be the biggest concern and most | | | | but in spite of that, it is here to stay. This is |
| prominently asked question in relation to cash | | | | largely because it has been built on the age-old |
| gifting. There are different reasons for this and | | | | principle of giving first which is a winner in any |
| I'll try to offer answers accordingly. | | | | culture. Providing you choose a genuine and |
| | | | | proven program, it is an unbeatable way to |
| Unfortunately, some cash gifting systems have | | | | create high residual income without ever having to |
| failed in the past. Fly-by-night operators used | | | | sell anything! In these times of global economic |
| swindling tactics that discouraged many sincere | | | | uncertainty, cash gifting will become even more |
| people from ever being involved. Also, there | | | | established and entrenched. People will use it to |
| have been many genuine entrepreneurs didn't | | | | achieve not just stability and a better lifestyle, but |
| know how to revolve a business model around | | | | complete financial freedom. I wish you success. |
| their cash-gifting program. They were hastily | | | | |