There is nothing wrong with giving gifts to people if we expect nothing in return. It is done everyday. I give gifts to my wife, my children, my friends - even to strangers when I see that they are in need. People do it all of the time. Where would the joy of giving gifts at Christmas and birthdays be if we had to pay taxes on our gifts?

So what is the problem with cash gifting? First, it is being conducted as a business in disguise. A legitimate business must have a legitimate business identity and a physical location to operate legally. How often to the participants in a cash gifting program identify themselves and there location? Second, to be legitimate a business must have a product or service - be it a physical product, an information product, a membership from which you receive benefits or a service.

Cash Gifting "Activities," as the participants call them are usually promoted as private clubs rather than businesses. You must be invited by a member of the "Activity" to participate. You give a gift to your sponsor for the privilege of receiving gifts from other people. What happened to the "expecting nothing in return" principle? You can, then, receive gifts up to the amount that you gifted to your sponsor. The amount over your qualification level goes to your sponsor, until you give (I mean "gift") to your sponsor to reach that level.

The secrecy of the private membership also raises questions of legitimacy. Only after you are invited and submit your gift to your sponsor are you given access to their back office. You can't share that information with anyone outside of the private membership until they, also, are invited and submit their gift to you. I wonder why these "Activities" periodically change their Name and all contact information from time to time? Could it be that IRS got a little bit too close? Or could it be that the "Activity" leaders were given a vacation in a Federal Penitentiary and had to return all gifts received to date - just speculation on my part.

How do Cash Gifting Activities try to get around the IRS? They site the IRS tax code Title 29 that says it is perfectly legal to give a gift up to $12,000 per year without having to pay a tax on the gift. They also require a written "Gifting Statement" with each gift that states that the person, who is giving the gift, basically is doing so "of their own free will," and, "that they expect nothing in return." They also require a written "Non-Solicitation" statement which says that the person giving the gift was not solicited to do so. Could this be a bit of "Smoke and Mirrors?"

Where does all of this uncertainty leave us? I would not want to participate in any "Activity" that has to disguise its true purpose and that borders on the honest and ethical, that also carries the potential of legal consequences. The lure is that it is quick and potentially lucrative, but is it worth the risk? Cash Gifting, like any online activity requires that you drive traffic to your website. You need someone, like a good Mentor to teach you how that is done. There are plenty of legitimate business opportunities that you can promote on the Internet. A good Mentor will be able to guide you in the choice of your business and will be able to train you on the best methods of promoting the business of your choice.