Legal Question in Business Law in New Mexico

Re: gift circle

If it is a legitimate operation a NM business may donate without restriction. If it is a chain letter, those are regulated by federal law and are generally illegal.

Whether or not such gifts are tax deductible depends upon the character of the organization receiving them. The recipient must have been granted 501(C)(3) status by the IRS for gifts to be deductible.

True gifts are legal whether or not they are tax deductible. Pyramid schemes and chain letters are not, no matter what dressing is put upon them.

Proceed with caution. What is the gain to you?

Why not support a worthy charity which aids battered women directly, and skip the games and devices? There are plenty around.