What Is a Gifting Program?

Gifting programs are simply a new variation on the old pyramid scheme, but usually pitched as a way to share the wealth, or other philanthropic aims, with of course, financial benefits to you.

You as the originator, are level A, and will recruit four people to join. They are level B. The four at level B, then each go out and recruit four people of their own, who become level C. Their "gift", is $1,000. That money is passed up the levels to A, or you. Level C (now 16 people), each go out and recruit four people who become level D. Their gift of money is passed up to the B level. Meanwhile, B is still recruiting more people for level C, whose gifts come to you at level A.

Think of it this way: It is your "grandchildren" who make the money for you. Your vested interest is in motivating your "children", to recruit more gifters or grandchildren, because that is how you build up funds.

But as each level grows, so the market for gifters gets smaller. Like all pyramid schemes, sooner or later, the whole thing will collapse, because the money accrued from gifts, peters out as people become aware they are not getting their funds back, and the ripple effect passes up the pyramid.

These schemes are illegal in most states, and claims by programs that their "gifts" as such, are tax deductions, is not true.

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