Well before I join such a program, I do some research. If I feel there are some strings attached to it, per say, I don't even take it further. Anyways, here's what I learned about it.
First of all, what is cash gifting? Well according to the IRS, it's the public or private act of giving a declared amount cash at its own free will to another entity or to someone. Those receiving the gift don't have to repay it back, that's why it's called a gift. Cash gifting programs promote the giving of cash. It's been a practice by many of us for a long time. We give money to our friends and family as a gift or we give money to our church. It's not something that just came out of thin air.
The IRS states that a person can receive a cash gift of up to $12,000 per calendar year. Any amount exceeding that amount is taxable. It's under the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.
Taxes are already paid on the money that is to be given as a gift. The giving of money as a gift to someone else by Americans and Canadians (at least) is a constitutional right. I can give my nephew $200 as a gift for his birthday, for a graduation present, or for Christmas. However, if it's over $12,000, it must be reported to the IRS by law and you get taxed for the excess of that amount.
Confusing? Well if I give $15,000 to my nephew, he may pay taxes on the excess of the $12,000, so that is $15,000 - $12,000 = $3,000.
Now what if you give $12,000 to your nephew on December 31st and another $12,000 on January 1st? Do you get taxed on the other $12,000? Absolutely not since the 2nd $12,000 took place in the next calendar year.
However, what is the deal with cash gifting and why are some of these people are marketing the program? That's because there are benefits of doing it.
Any money given by someone to another person is not considered a scam, as long as you do it at your own free will.
In cash gifting, no business transactions take place when money is transferred from one entity to another in the form of a gift.
It has nothing to do with any form of businesses. No CEO, board of directors, nor upper level managers have anything to do with you receiving money from someone else.
How how does someone make money promoting these programs?
You drive traffic to a landing page that would belong to you. The organization involved serves as the mediator, in which you pay a small annual fee to keep your website. Your visitor may fill out a form in your landing page with their contact information and callback number. These visitors serve as your prospects who will want to join your team.
Because joining a program is affordable for those who are serious, they can sign up under different levels. One can start joining at $150 and it can go up to $5,000.
Let's say you join at $500 under a sponsor who's at the $500 level. When you make that first sale, you provide the entire first sale to your sponsor. It doesn't matter if they join at the $150 level or the $500 level. If it exceeds $500, it goes to his sponsor.
On your second sale, you keep the entire amount paid to you as a gift. Any excess over $500 (the level that you joined under) goes to the next upline who has the excess of $500. You will then be qualified for an additional half of the excess.
For example, if you're at the $500 level, and you brought in someone at the $1,000 level, the next upline at the $1,000 or above level keeps $500 as a gift, and you would be qualified for an additional $250, thus you'll now be promoted to the $750 level.
Any sales beyond the first sale (which you must pass it up to your enroller) is yours to keep as a gift. All this money is tax free (under IRS rules).
Thus, assuming that you're qualified (after you pass up the first sale), if you make 10 sales at the $150 level, you make $1,500. Since the people you brought into the program must pass up the first sale and all 10 of them make their first sale at the $150 level, you make another $1,500. That's a total of $3,000.
What if you made 10 sales given the same scenario above? You just pocketed $10,000 and yes, all this money you raked in is tax free.
Now you ask me, is this for real? Is it a scam?
It's as real as it gets and it's not a scam. As long as you help your team grow, the word scam is slowly being disassociated to the term cash gifting.
Cash gifting is an activity embraced by thousands of people in 44 countries. It happens when someone freely gives someone else cash as a gift. Cash gifting is becoming the next big thing, although it is not a new concept and far from a new phenomenon. It's simple and easy to do for even the novice marketer.
It isn't a company, a 2-up, a zero up, MLM or pyramid scheme. The purpose of cash gifting at its base is people helping people. Nowadays, it's becoming the perfect solution to the everyday person’s problems.
Cash Gifting is becoming the hot new trend of 2008 and beyond. It affords you the opportunity to get that feeling and help another person. It is for real, is gaining a lot of attention, and is turning a lot of heads very quickly.
This is NOT a business, it is gifting plain and simple.
If this fascinates you, I encourage you to go visit my website at http://www.taxfreecashcentral.com and fill out the form so that you can know if this is for you or not.
