Why Does Cash Gifting Get a Bad Reputation?
The internet phenomenon of cash gifting is one that is creating a high income and better lifestyle for many thousands of people around the world. However, for many others the term 'gifting' has them immediately skeptical and cynical. They run in the opposite direction claiming that it's a scam, unethical or even illegal. These opinions spread quickly which result in gifting programs being viewed as corrupt and the people in them either foolish or insincere.
There are several myths associated with cash gifting that need to be replaced by the truth. But firstly, let's have a look at exactly what cash gifting is. In short order, it is 'the act of privately or publicly giving another person or entity a declared sum of cash (strictly as a gift) and giving it freely without coercion or consideration'. This activity does not involve commercial activity, company name, directors or shareholders. Churches, civic groups and people around the world have participated in organized gifting for over 300 years and governments allow its practice so individuals can share their wealth with family, friends and others. Many cultures gift as a means of helping and blessing others.
So in view of all that, why is it that cash gifting has developed a bad reputation? In my opinion, it is due to three main questions and I'd like to address each of them…
1. Is it legal?
In a word, YES. The laws of most countries state that it is legal for individuals to exchange gifts. In the United States, for example, there is the Preamble, the Constitution and the Bill of Rights to protect a private citizen's rights 'to earn, pay taxes and give away property and cash as long as it is done according to the laws and codes of this country.' So, cash gifting is perfectly legal as long as it's done with appropriate documentation and appropriate tax declarations are made.
According to the IRS in the United States, the current law states that any individual may receive from any single person a gift up to $12,000 in a calendar year without any tax liability to either the giver or receiver of the gift. The reason for this is because the tax on the gift has already been paid. The vast majority of participants in cash gifting systems give and receive amounts much less than the individual limit of $12,000. The gifts range in value from $5 to $5,000 so with these values in mind, it is easy to see that participants will be far beneath the ceiling set by the tax department.
2. Is it a pyramid scheme?
In a word, NO. A pyramid is associated with a company or a business. Gifting programs are not companies, but rather a community of like-minded people working together. Everyone gives the same gifts, works together in team dynamics and receives the same gift. There is no structure to build or maintain. In a pyramid, only those at the top profit while those at the bottom never reach the top. They are illegal and people have lost their money from participation in them.
The Oversized Cash System (OCS) in particular can never be perceived as a pyramid. The reason for this is that six months after a member joins they must rejoin under another member to keep promoting their link. So, no-one can ever stay at the 'top' and it becomes a continuously changing network that recycles itself. No other system that I know of creates such a fair environment and level playing field for everyone involved.
3. It is a scam?
This seems to be the biggest concern and most prominently asked question in relation to cash gifting. There are different reasons for this and I'll try to offer answers accordingly.
Unfortunately, some cash gifting systems have failed in the past. Fly-by-night operators used swindling tactics that discouraged many sincere people from ever being involved. Also, there have been many genuine entrepreneurs didn't know how to revolve a business model around their cash-gifting program. They were hastily arranged without appropriate planning and the absence of the business element meant they eventually collapsed. As a result, cash gifting programs generally received a bad reputation.
Often in those early days, the tracking of money was done on manually. The result was the members were unaware about the quantum of pending gifts, nor did they have any idea when to expect their gifts. Legal documents were not shaped to give that legitimate touch to cash-gifting transactions and members were not given adequate marketing support or any marketing leads. Members had to do everything alone so many of them lost interest and gave up because it became too difficult.
However, things are very different now and cash gifting has emerged as a sophisticated business model nowadays with the advent of completely transparent and ethical programs such as the Oversized Cash System (OCS). Programs like OCS are not only ethical, but highly sophisticated too - they revolve around sound business principles and use state-of-the-art software tools to track members' activity. They know what's coming and this transparent flow of information means the public are now returning to the once-tarnished concept of cash gifting.
Sometimes it is the people already in the programs who bring down it's credibility. In their marketing efforts they will concentrate entirely on giving a good sales pitch without being able to answer even the most basic questions about what they are offering! People who are offered the 'you'll be rich tomorrow' lines are naturally going to be upset when they realize that it's not as easy as they were told. The first thing these disgruntled members do is post a blog on the internet about the latest 'cash gifting scam.' So, it could be said that certain people involved in cash gifting programs are responsible for their own negative publicity.
Another problem that has become apparent in some programs is a lack of support and direction. If you buy into an opportunity of any kind and don't receive with these vital elements, it would be natural to feel like you’ve been cheated. A cash gifting program is no different. It is important in starting any venture that you are provided with marketing tools, administrative support and information on how to use them successfully. The best programs will also offer a forum where members can share ideas and encouragement. I encourage anyone thinking of starting cash gifting to research your options and make this a high consideration in your choice.
Finally, we need to remember that any online opportunity, including gifting is not a get rich quick scheme or a lazy path to wealth. Regardless of what anyone tells you, it does take some time and effort to establish. Cash will not simply start growing on trees. It is earned through advertising, marketing and networking. The system works beautifully but unfortunately there are many people who misunderstand what is involved. Again, the result is that they claim to have been scammed and tell the world of their experiences.
The most important thing I can suggest is to remain objective. Put aside the negative press and do your own research. Establish all the facts before making any decision. Remember that everyone is given the gift of common sense. If your gut tells you that something is a bad idea, then it probably is so don’t do it!
Cash gifting is an often misunderstood opportunity but in spite of that, it is here to stay. This is largely because it has been built on the age-old principle of giving first which is a winner in any culture. Providing you choose a genuine and proven program, it is an unbeatable way to create high residual income without ever having to sell anything! In these times of global economic uncertainty, cash gifting will become even more established and entrenched. People will use it to achieve not just stability and a better lifestyle, but complete financial freedom. I wish you success.
Dave Tomlinson
http://www.trafficdigger.com/user/k1w1nz.html
About the Author:
I am successfully developing my first online business through cash gifting and I'd like to write a book one day. I believe that we are fortunate to live in this era of advanced internet technology. It opens up opportunities that previous generations could only dream of and all we need to do is take the first step and unlock that extraordinary earning power available.
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