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Last Update 8/4/07

Our Gifting Program is 100% Legal!

Let’s See
What the IRS Has to Say . . .

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CashGenerator.ORG is NOT an Illegal Pyramid Scheme. By IRS definition, pyramid schemes are illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top.  The success of a pyramid scheme relies upon a never-ending supply of new participants.

The Cash Generator Gifting System does neither. A total of $350 goes to CashGenerator.ORG.  Fifty dollars is donated to help monitor and distribute gifts to each six-member list. The balance of the gift, $300, goes to the six members shown on the list, totaling $50 each.

As a new member sends gifts for those (and only those) six people,  his/her name is then placed at the number six position and the person in the number one position is removed after receiving their $50 gift. Money is NOT funneled to any person not shown on the six-name list.

As new members enroll in the gifting program, the program does not rely on a never-ending supply of new participants.  How is this possible?  Each and every member is free (and encouraged) to begin the new six-member cycle as often as wanted, using another cycle of new and old members. The more participation in the lists, the more gifts.

How do the administrators of the program make their money?  By participating in the same program you do.  By going through exactly the same process as new members do.

And What’s Considered a Gift?

Once again, according to the IRS (IRS Tax Tip 2007-39):

Q: What is considered a gift?

Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.

If you gave any gifts to another that values more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.

The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.  The person who gives the gift is responsible to report it as a gift tax.  [Cash Generator members should report their gifts for each $350 six-name gift cycle.]

Gifts include money . . . without expecting to receive something of equal value in return.

Members do not expect to receive something of equal value from those persons to whom they gifted on the six-name list. However, a member does expect to receive a $50 gift from participants on a new list, not from those he had previously gifted in that six-name cycle.

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