Are Cash Gifting – Giving Programs A Scam?

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Hmmm, well it depends on who you ask. This post is probably going to ruffle some feathers and cause a lot of debates but that's what we're here for. So let's get into this so called "Cash Gifting – Giving" program opportunity.

So what exactly is cash gifting?

Here's what the promoters of cash gifting are saying it is:

A cash gifting program is exactly what it sounds like it is. You give a cash gift to someone so that you can get cash gifts in return. How do you send the person the money? Well the same way you can give someone a check on his or her birthday, or cash in a card as a gift or present.

Well here's how the Federal Trade Commission (FTC) defines it:

New club members give cash "gifts" to the highest-ranking club members, with titles such as "captains." And they're promised that if they get additional members to join the club, they, too, will rise to become captains and receive money – far more than they initially paid to join the club — from newer club "friends."

Is Cash Gifting – Giving even legal?

"Not Never!" Don't believe me? Here's what the FTC says:

"In reality, the clubs are illegal pyramid schemes… The problem is that, like most pyramid schemes, illegal gifting clubs must continually recruit ever-increasing numbers of members to survive. When the clubs don't attract enough new members, they collapse. Most members who paid to join the clubs never receive the financial "gifts" they expected, and lose everything they paid to join the club."

Should You Get Involved in Cash Gifting – Giving Programs?

Isn't obvious by now? If not, let me make it abundantly clear. According to the FTC it should be avoided for the following reasons.

1. There is no guarantee that you'll get a cash gift back. Remember this is a gift and you shouldn't expect anything in return which is how the leaders of the company try to pass it off as legal.

2. Most of the success stories you may hear are from the leaders of the club and rarely from the followers. If you can't get more people to give the cash gifts then the whole thing falls apart and you're the one that usually loses.

What are legitimate alternatives to Cash Gifting – Giving Programs?

Look, I'm not a blogger that cries scam and doesn't provide alternatives. Anyone that has read my articles knows that I'm solution oriented and not about complaining and being a Negative Nancy. You have enough of those folks out there. So here's my take. If you were willing to give a stranger up to $3500 in the hopes of having some other person give you that type of money back, why not look into the following legitimate sites? is an ad free work at home job database that provides you with pre-screened work from home job leads on a regular basis. Are you guaranteed to land a job? Nope. That all depends on your skills, resume, interviewing skills, etc. Are you likely to get scammed? Nope, because the jobs are pre-screened.

Wealthy Affiliate is a website that provides you the opportunity and one on one help to have a successful work at home career as an affiliate. You'll get paid to help people find the products, information and services they are searching for on the web. Are you guaranteed to make money? Nope, but are you guaranteed to get a cash gift from a stranger?

So those are my suggestions for people that were considering giving away money to those cash gifting strangers. The two websites above are legitimate and based on solid fundamental business practices.


So that's the story on Cash Gifting aka Gift Giving aka Ponzi Scheme aka Pyramid Scheme. It's funny as I was doing the research on this article, it made me realize that I had got into one of these programs several years back. It was presented to me by a good high school buddy of mine. He had made money with it, so I trusted him. So I give him $500 and my girlfriend gave $500 and my sister gave $250. We were suppose to have that money doubled within a week. Next thing I know my buddy wasn't answering my phone calls after week 2. Needless to say we all lost our money. Losing the money was hard enough. But I was more torn up because my girlfriend and sister had also lost their money and I lost a good friend. Lesson learned.

In any event, we're all grown adults here, so you have to decide if you want to take the risk on cash gifting/ cash giving. I've given you what the government thinks about it because I know a lot of these programs are pulling facts out the air about the legitimacy of this so-called program. Now you have the facts provided by a government body and not some blogger on a mission or with a grudge. Do what you will but be prepared to live the consequences either way like I, my sister and girlfriend did.

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