Cash Gifting is becoming more popular as the people involved in cash gifting are spamming the web, craigslist, youtube, and any other place you might not want their spam.
Cash gifting is a scam where you send cash to people with a disclaimer that the cash is a gift to "make things legal" and hope other people send you money by recruiting other people dumb enough to send cash to strangers.
For the legal speak and to learn more about cash gifting I recommend the site: CashGiftingWatchDog
Cash gifting programs heavily emphasize the fact that what they are doing is perfectly legal according to the IRS. The IRS does in fact allow cash gifting as a way of reducing the tax burden on your estate, but Tax Code Title 26, Sections 2501-2504 and 2511 makes it completely clear that in order to qualify as a gift, the money you give to someone else must be given with absolutely no expectation of a return. Two people can"t simply swap equal amounts of money as a tax dodge.
You should be aware of what Cash Gifting is because many ebooks, programs, and people masquerading under the flag of "internet marketers", or teaching how to make money on craigslist or youtube or whatever are really just scam artists putting some lipstick on a pyramid scheme and calling it "cash gifting", or something similar.
Merlin Mann recently had a fascination with Cash Gifting and put together a great post on the topic which includes a bunch of videos with some of his thoughts:
"THIS IS NOT MLM!!!" - An AppreciationThe best quote from that article, and indicative of much of the "internet marketing" crowd is as follows:
This is Ron Grant. He’s going to train you on how to market online and get high traffic for your YouTube videos. It’s obviously worked for him; as I write this, Ron’s video, posted almost 2 months ago, has had 99 views.
LOL
Of course I love internet marketing. I think the time is now that internet marketing will win elections, change national opinions, make me my first million, change laws, and more, however internet marketing has very little to do with stuffing an envelope full of cash and sending it to a stranger in hopes I get an envelope stuffed with cash while breaking the law at the same time.