1. The language they use to promote their program
2. The structure of their program (usually called the “plan”)
3. The Offer

Let’s take a look at Number 1:
If the sales pitch talks about any of these things then they are or will soon be illegal.

• Investing
• Earning
• Selling

To qualify as a gift there has to be no expectation of anything in return for the gift. All gifting programs cover this one easily by having the giver sign an agreement that they expect nothing by giving the gift. Occasionally a person promoting a program will use the above words because they don’t know any better.

Now for number 2.
The structure of the pay plan can not be multilevel. Previous legal rulings that have come down regarding affiliate programs have defined multi-level as more that two levels. You will find lots of two tier programs at the major affiliate programs. Amway was nearly shut down because the appearance of recruiting for profit with no product involved would qualify them as a Ponzi scheme. They set down the law with their distributors to clearly state that no money was made by recruiting, only by product sales. So any gifting program will become illegal if they have a multi-level pay plan. I you see a picture of a matrix in a plan stay away.

Now for number 3.
Since there is nothing being sold and no expectations of a return then there are no profits to be made. Using the normal language surrounding a business like ROI, investing, selling, profit, loss and guarantee are all disallowed words that will disqualify gifting as a charitable act and put it solidly into the area of fraudulent business.

The IRS looks at gifting as a legal practice of transferring wealth form one person in a high tax bracket (estate tax) to someone in a lower tax bracket, thereby reducing the value of the estate prior to death (when the estate is taxed with all the might that government can bear).
The legislature has fixed the limit of annual giving to $12,000 which is somewhat attached to inflation. (…means the number will go up as long as government sanctions the printing of money)
Politicians use gifting quite often to transfer wealth so it’s rather unlikely that they will disallow themselves from doing it.
Any gift falling under the annual limit is not taxable to the giver or the receiver.
Recipients of gifts can make lots of money tax free by getting lots of gifts under $12k.

Congratulations!
Since you’re reading this article then you have probably made the decision to participate in Cash Gifting. You will not regret it, as this is a noble and fun practice. What you’re trying to do now is find the right program and the right sponsor that suits your personality and skills. An incorrect choice at this point could ruin the whole process for you. So move cautiously and choose wisely.

The first question to ask might be is this really a cash gifting program or some other weekly disguised MLM. If there are tiers in the pay plan then it is not Cash Gifting. If if the program is commingled with a product then it is not Cash Gifting. If there are fees and costly training, then it is not Cash Gifting. You’re on a level playing field with everyone else in a legitimate cash gifting program.

Make Sure its Legal
IRS has established Cash Gifting as legal. Learn the rules and regulations of Cash Gifting. If you are looking at a program that has the above features then stay away. They should be able to show you their terms of service (TOS) before you join. If they refuse then that would scare me off.

Examine the Program.
Having a mentor to walk you through the steps of signing up AND helping you use and learn the marketing systems is paramount. You’ll want to start receiving gifts right away and a cash gifting mentor can really help with that. You will want help with questions and procedures and it’s important that your mentor will be there for you. If it doesn’t feel right then move on to another one. Everything must be in place for you to succeed.

Listen and Learn
Once you learn who your mentor will be, talk with this person. Tell them about your dreams and past successes. It’s important that you are on the same page with your mentor. This is could be the most important part in making this cash gifting opportunity work for you. If you do not have an experienced mentor who shares his experiences freely and is easy to understand you will have difficulties.

By heading these ideas you will be sure to find a Cash Gifting program that is right for you. I think the most critical idea to share with you is that you should be wanting to get involved with cash gifting to help others succeed. Believe me when I say that they will be able to feel your generosity in the way you treat them. If your heart’s in the right place you will receive back many times over what you give. You will need to plan a block of time every day to work the program. You shouldn’t work with anyone that is not willing to commit to that. Listen to and carefully follow the advice of your mentor. It will eventually become part of your nature to be a “go giver” and then don’t worry about the money. It will flow naturally.

By: Jeff Scott

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