1-Up Cash Gifting Programs

I'm on my search for the answer about if cash gifting programs such as Abundance Living System, Epic Wealth System, Viral Cash Abundance, The Overnight Cash System (TOCS), Number One Success System (NOSS), Cash Arrives 365, Spirit of Wealth (SOW), Magnetic Cash Gifting System etc to find out if they are legal or illegal.

I've come across various bits of information about the 1-up system and other similar systems and in this blog post, I'm going show you what I've found and give my thoughts on this.

The first thing I came across was this 1 up movie/ video which explains the logistics of how the 1-up system works. (Make sure you watch it to get an understanding to how it works)

Yes, the amount of money you 'can' make looks very enticing, but don't jump in yet and don't get too excited. I've got a lot more research to do before I start sending my first cash gift and I hope that you have too. The thought of sending $3,500 to someone without fully researching something first scares me. I'm not short of money myself but I've heard of some people who ARE short of cash sending this much money and NEVER hearing anything more from the person they sent it to!

There are right ways to do this and wrong ways to do it. Starting off in a program with a low entry fee is critical to make sure you don't lose much money. Once you are happy with how the system works and you are sure that you can make money back by receiving gifts, then you can increase your gift and slowly start to receive more money and gifts from others.

Here is another website explaining the 1-up system (below). My advice to you right now, if you're sitting on the fence with this and are not sure if you should take part in cash gifting is to WAIT. Let me do some more research first. I'd like to help you on this journey and give you as much information about cash gifting and the different programs as possible. Join up to my newsletter and I'll keep you informed – www.GiftWithGavin.com

Legal Gifting Programs are not Pyramid schemes. There's no financial advantage for one participant over another. Everyone is on the same level regardless of seniority. The 1-up structure has been used by Real Estate and Mortgage companies for years.

http://www.newabundantlivingsystem.com/1-upexplained.html

The Other Side Of The Argument

I found this conversations one of the work at home forums whilst I was doing my research. It just shows that there are always two sides to every story. Which one do you believe? Personally, I'd rather get all the information and then make my own decision. I know that cash gifting is very border line and in order for the program to be legal, it has to follow certain guidelines and best practices.

Here is the info from the forum

I curiously clicked on the "play" button on youtube recently about "make money cash gifting",. This one guy, who shall remain nameless, was talking a really good game about how GREAT cash gifting is. How it made him loads of dough and he's just rolling in it, and how you can to.

Cash gifting's a great example of a 1-up system. 1 – up systems are uni-levels generally. Because 1-ups have multiple entry levels and qualification standards the "paylines" actually cause the "downline" to take on a structure that's clearly pyramidal in structure.

The giving of money as a gift is fine – but that's NOT what this is…this is a glorified ponzi scheme exploiting innocent people and a loophole soon to be closed.

The very nature of the name should raise suspicion – Cash Gifting.

If you have to PAY INTO these gifting clubs – it's a scam. A gift, by it's definition, is a thing given willingly to someone without payment. If it's a GIFT, why the hell are you and I paying for it?
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"The Gifting Club Gotcha" FTC :

A legitimate gift has no strings attached and is therefore, not an "investment". Avoid being mislead into thinking a gifting club's legitimate because the ad's say that members consider their payments as a gift and expect nothing in return. This is a sorry attempt to make an illegal transaction look legal.
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This should raise red flags immediately!

They are modeled very similarly to a pyramid scheme. They never last long and if your stuck at the bottom, your screwed when people wise up to this "old concept with a new name" and start demanding MASS REFUNDS. The system collapses…

Gifting schemes always leaves losers because they leave losers when people start to complain and report when they aren't making any money. And they realize they won't be making anything long after they've already joined because only the top 10-15% of those who started at the top will benefit. The other 85-90% won't.

It's the basic law of averages.

To be frank, The pyramiding structure itself is not the REAL problem. Every large pyramid scheme known to man (corporations, governments, businesses, etc) is a pyramid if you've ever seen a organizational chart.

The real problem is when there is no real product or service being sold.

The system is just a bunch of new people giving old people money while the new people are hoping the newer people will come around and give them money. There is no "VALUE" being traded to contribute to anyone's livesand eventually those who were tricked into this scheme will be at the end of the thin line – prepare for a rude wake up call.

And those who "knowingly" promotes that which "takes away" from unsuspecting people without giving more in return – Are old fashioned bank robbers – minus the black mask's. There will come little joy from the attainment of the money made and majority of them will almost certainly lose it as fast as they made it. A true definition a Ponzi scheme.

Hopefully, this article is of great value to you and will help prevent you from being suckered into this "financial death trap". There is no such thing as "Easy Money". I don't care what business you choose to get involved in, it will require quit a bit of work on your end. With that comes with it's true rewards – happiness, freedom, and a sense of accomplishment.

After you do a little elbow grease, than the money becomes easy to make. You see people have it COMPLETELY backwards.

Conversations will dull quick if a friend or family member asks you the sweat question : "So, what do YOU do for a living".

I f you take the easy road out, you will eventually suffer the consequences.

Take the time to build a business and you will see the fruits of your labor in return. It's simple if you take the time to learn and apply yourself. We all have something of value to offer, just don't be afraid to share it with others.

To read the full conversation, visit http://www.work-at-home-forum.com/3_9752_0.html

Very interesting, and a totally different view point again! So, we are still non the wiser.

Here is one other article I found fairly interesting:

First, as an accountant, I researched the tax laws. I learned that both, American and Canadian citizens, and other citizens around the world have the right to gift property, cash and other assets. The U.S. gifting rules are found in the IRS TAX CODE, Title 26, Sections 2501-2504 and 2511.

And just know that those rules are focused on the tax liability of cash gifts. Of course, you should always consult your CPA or Tax attorney for a full and comprehensive review and advice about how to treat cash generated from gifts in your specific tax situation.

By reading the law, you will find that one or more individuals can give a gift to another individual up to $12,000 each per calendar year without any tax liability to either the giver or receiver of the gift. This is because the giver is using "after tax" cash to make the gift. In other words, the tax on that money is assumed to have already been paid.

Secondly, to make a cash gifting activity legal it must be properly structured. A properly Structured Cash Gifting Activity is NOT PYRAMIDAL in structure. There is no "fat cat" at the top benefiting from others. A person starting today can easily generate more money than some other person who has been in for more than a year. It's strictly between you and the person who you invite to learn about your cash gifting activity and sharing club. If they like the concept, they may agree to give you a cash gift. Direct. Person to person. No pyramid anywhere.

Source – http://www.articlesbase.com/ask-an-expert-articles/is-cash-gifting-really-a-legal-activity-for-generating-cash-flow-594944.html

From all the above arguments, it seems that you are going to find two sides to this argument where every you look. The people who are saying that it's legal tend to be the one's who are promoting the cash gifting scheme or opportunity and have a financial interest in it and the one's who are negative are either not involved with cash gifting or have been burned before and don't want others to suffer the same fate.

If you look online, there are thousands and thousands of people who are cash gifting. Many gifting programs have been around for a long time and it's legal if they do it the right way. But, there are some notorious cases of cash gifting programs that are illegal and have been closed down by the FTC and trading standards in the past.

To some people, the word 'cash gifting' rings alarm bells and they tar every program with the same brush. It all comes down to people's beliefs and interpretations to believe it's legal or illegal.

Let me know your thoughts, comments and experiences at the bottom of this post.

Hmmmmm….. On with the journey

To Keep up to date with any new blog posts, videos and research about cash gifting, please visit http://www.GiftWithGavin.com – This will take you to a page where you can submit your details to me so I can keep you informed with my latest findings.