Out Of This World Fundraising

Is Cash Gifting Legal?

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Is Cash Gifting A Legal Activity?

Yes, cash gifting is a perfectly legal activity. IRS laws regarding gifting have been in place since 1981 allowing the gifting of cash by individuals as long as it does not involve any type of business or pyramid scheme.

On the day I turned 8, I opened my grandmother's card and a $20 bill fell out. She didn't pay taxes on that $20 and neither did I. It wasn't income -- it was a gift. Thank you, Grandma.

Several weeks after my wedding, my new husband's cousin handed me a hundred dollar bill. Again, it wasn't income -- it was a gift. Thank you, Cousin Bob.

You can look up gifting rules according to the IRS right in the IRS TAX CODE, Title 26, Sections 2501-2504 and 2511 which states there are no laws against receiving or giving cash gifts.

My dad checked out these rules and gave me $10,000 when my new husband, my baby daughter and I returned from an Army tour in Germany. Thank you. Daddy.

After my mother-in-law passed on, I gave a nice chunk of her inheritance to the church she and I attended. Perfectly legal.

The law states that it is perfectly legal for anyone to give a gift to another individual without any tax liability to either party of up to $13,000 per year per person. For a husband and a wife the $13,000 doubles. This is the 2009 limit. It seems to go up $1000 a year. The largest gift involved with our community is $10,500 which is well under their limit and making it perfectly legal.

NOTE: We are in the process of adding a $1500 level. This will make our communty's largest gift $12,000 -- still under the legal limit.

Giving to others has been around for decades, if not centuries. It is a secret known by the wealthy, and cash gifting communities were created to make it easier to share.

This is an audio tape of an actual phone call to the IRS in 2008.

When you join our gifting community, you agree to give and receive gifts according to whatever gifting level you choose. We are not a business or company, not an investment group and not an investment club.

You are simply an individual within a gifting community. Every gift you receive is 100% yours!