The concept of "gifting"

Many startup gifting programs are a good place to lose your money. Here today and gone tomorrow, along with your money. You "gave" but it never lasted long enough for you to "receive" your "gifts".  But there ARE well managed gifting programs with rules, safeguards, and controls that  DO work and pay  just like they are supposed  to; at least at the beginning.  

HOWEVER; gifting programs are probably the biggest target SEC goes after to shutdown and get people in trouble for promoting. Because of this I have had to take the position to quit playing in these and  not promote them to others until someone with more money than I comes along and has the power to change the rules. My family comes first.  Read near the bottom why gifting programs are doomed to fail. 

Private Gifting - A Total Team Concept
What is private gifting? Private gifting is a concept that is embraced by a private group of individuals and has been in existence for many years. Our private activity does not involve network marketing, multi-level marketing, or a business or commercial activity. There are no business transactions, investments and/or securities involved in this activity. There is no business or company name or location and there are no directors, officers, shareholders or principals. Individuals simply support each other in a team concept and help change lives. The concept of private gifting is based upon the fact that both American and Canadian citizens have the right to gift property, cash and other assets within the rules and regulations established by the laws. 

The Government and state attorney general's offices would really like to not see gifting programs; the reason obviously is that a lot of people stand to lose money in gifting programs that stop or dead end.   However , many more people throw their money away at state lotteries  as well as state licensed gambling casinos, but that's okay though. The net is different in that at an influx of 60,000 people per day coming to the net, there are plenty of people to feed a lot of gifting programs. They're not a get rich quick item, but they can significantly add another income stream source to your  financial picture. 

How did this concept begin?
Giving private gifts to one another is an expression of kindness, which has been going on for centuries. Governments have allowed its practice for individuals to share their wealth with families, friends and others. It has been a means of helping and blessing others on special occasions or when the need arises. In fact, to be considered a gift under the Tax Code, the gift “must proceed from a detached and disinterested generosity; out of affection, respect, admiration, charity or similar impulse.” In this activity, there are no expectations for exchange of services or any other valuable consideration between the giver and the receiver. Many cultures gift as a matter of course. Asian, Jewish and South American communities gift individuals within their race and/or culture on a regular basis so that they may start a business or buy a home. They in turn gift someone else to help enhance their lives. Habitat for Humanity is a great example of private gifting. Everyone participates with their time, their talents and materials to build a home for someone else. Some participate with a hammer, some with nails, some with food and others with the monetary gifts to purchase the supplies, but all create a team that works together to bless someone’s life.

The key to "gifting" is to NOT expect something in return - this is where SEC has the hardspot with gifting clubs because most of the time when we join a gifting club and gift someone we DO expect to receive a gift returned from someone in the future. 

How does the gifting activity work?
Individuals share using a basic concept that “all things must be done in order” and follow the law of reciprocity—giving opens the way for receiving.  This activity is offered only by means of an exclusive one-to-one invitation.  When someone accepts the invitation, they move through a natural progression from the giving to the receiving stage of the activity  which can take from a couple days to a couple weeks..  Everyone rotates through the activity and if they complete the progression, they will receive monetary gifts and well wishes from the team.  In this activity, there is no fixed hierarchy of individuals who have an advantageous position or unfair advantage over new participants. You have the ability to  receive as much as anyone else in the program that brings the same number of people to the table, no matter when you enter. 

Concerned about the legality of gifting?

It is 100% Legal according to some; but SEC does not fall in the "some" category.  Basically our government instead of helping  people has become a big bully with the primary mission of keeping us broke and in slavery to the JOB. If you look at the last 60 years of economics in America we have become the proverbial frog put in the pot of cold water with the burner turned on to cook to a slow death without even being aware of it.  Our rights have been  erroded away, government is trying to disarm us (how many round clips can you buy today for a handgun or rifle) , all in preparation for the new World Order coming down the pike. If you don't know what that's all about head for the last chapter "revelation" in the bible or get some videos at  and check out 

  The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511, and Canadian Tax Code, Sections 143.3 and 62.0. The law states that one or more individuals can give a gift to another individual of up to $10,000 each per calendar year without any tax liability to either the giver or receiver of the gift, because the tax on the gift has already been paid. 
These gifts are not included in the gross income of the recipient – Sec. 102 (1986U.S. Tax Code).

Check these links for more details.
US Law 26 sections: 

Gifting clubs are doomed to fail - they are classified as  pyramid schemes
Authorities investigate spread of pyramid schemes here

By SANFORD J. SCHMIDT, Telegraph staff writer February 11, 2001
The Illinois Attorney General’s Office is investigating a pyramid
scheme that first appeared in the area in Jersey County and spread
to Madison County, officials said. Police warned that such schemes
are illegal, even though many participants may also be victims of
the crime. "Money doesn’t grow on trees, and in order for some people
to make money on these schemes, some people have to lose," said Capt.
Robert Hertz, the chief deputy for the Madison County Sheriff’s
Lt. Terry Remelius, an investigator for the Illinois State Police, pointed out that anyone participating in the scheme is potentially guilty of a crime, whether it is someone at the top of the pyramid or at the bottom.

In such schemes, organizers call people together in meetings of what might be called a "gift club," "dinner club" or "birthday club" and persuade people to invest thousands of dollars to become "members." Similar meetings also have been reported in Alton and Bethalto within the last few weeks, but there were reported meetings in Jersey County last fall. Some callers to The Telegraph have reported taking out second mortgages to come up with the $5,000 entry fee. The members are then asked to go out and persuade others to join and put in membership fees, a portion of which goes to the people at the top of the pyramid. The process continues until people at the bottom of the pyramid work their way to the top and supposedly earn lots of money on their investment.

The problem, Hertz said, is that people eventually run out of others to recruit and they are stuck having invested their money and not finding any new members. The organizers of the scheme in the area keep insisting the plan is legal, but sheriff’s deputies and State Police have investigated and found they are not.

Hertz said people from his office heard rumors about the scheme and went to the Hollywood Nights lounge in Bethalto a few weeks ago to talk to a potential witness. The informant said a meeting was going on at that time so deputies interviewed people at the meeting. Hertz said no arrests were made and no charges were filed, but detectives found out enough information to later determine that the scheme was illegal. They also learned the meeting in Bethalto was connected to similar meetings in Jersey County, which already were under investigation by State Police.

State Police have turned the investigation over to the Illinois Attorney General’s Office. Jersey County State’s Attorney Rick Ringhausen said last fall that the schemes were illegal, according to the Attorney General’s Office and the Federal Trade Commission. FTC officials have said they are constantly warning people about these schemes, which are billed as private clubs with members eager to help new friends, often within their neighborhood or church group. The schemes started in the mid-Atlantic states and the Pacific Northwest and have spread to other parts of the country, FTC officials said. Law enforcement officials said most who paid to join the club never will receive the so-called "gifts" they expected and will lose everything they paid to join.

A few at the top will reap the benefits, and the rest will be buried under the pyramid, Jerseyville Police Chief Bill Bridges said. The Internet has become a powerful tool for people operating these schemes, law enforcement officials have said. With such large sums involved, many of those putting in money are in the middle- or upper-income brackets, but others are low-income and can’t afford to lose that kind of money. To file a complaint or for more information, people can call the FTC at 800-FTC-HELP. 

Visit the above site to see other people's opinions on the above enforcement actions.