Legal Question in Consumer Law in Wisconsin
Searching for a answer on cash gifting,this is what i found.Is this true?
Sounds great, but is it legal?
Cash gifting is often lumped together with pyramid schemes. Everyone squirms when they hear �pyramid� and this is unfortunate for legitimate cash gifting systems because it gives them a bad reputation. It is sort of like getting blamed for something your second-cousin-twice-removed did. When examined, cash gifting systems are structured completely different than any pyramid scheme. In fact, it is the simplest structure� a straight line. In a cash gifting system, gifts flow along this line, instead of being funneled upwards from a broad foundation to one individual. It is this funneling effect that eventually causes most pyramids to collapse, leaving those at the bottom without anything. For this reason pyramids have been outlawed. The simplicity of the straight-line cash gifting systems is what makes them effective, efficient and operate without the fear of collapse.
Legitimate cash gifting systems employ what are known as Gifting Statements and Non-Solicitation Forms. These forms are used by everyone involved and clearly lay out what each individual is giving or receiving. The basic interpretation of the statements is that the giver is not purchasing anything and the receiver is not selling
1 Answer from Attorneys
Cash Gifting Pyramid Schemes and Federal Prison
In some federal institutions, the food is not all that bad (I know this from working in them during law school clinical training assisting inmates). I therefore hope that you enjoy it if you set something like this up. Fraud by any other name is still fraud. Why would anyone donate to such a thing unless they were fraudulently lead to believe that they would make money from it; and how would they make money from it it if not via receipt of other dupes' "donations?"
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