Cash gifting programs have a bad reputation because they are considered to be something along the lines of a Ponzi scheme. This may be the case for some cash gifting programs, but others are reputable way of earning money. A cash gifting program that does not present itself as a business opportunity such as a multi-level marketing business is not doing anything illegal. The cash gifting program that does not seek people to invest in a company has not broken any laws. If it does not present itself as a business that has shareholders, offices or has a name attached to it, the cash gifting program has not attempted to defraud the people who join it.Legitimate cash gifting programs that do not present themselves in the manner described above are considered to be transactions permissible by the United States and Canadian governments, because citizens of both these countries have the right to give money to anyone they would like. Those in the United States who follow the rules outlined in Title 26 of the Internal Revenue Service (IRS) tax code, specifically sections 2501-2504 as well as 2511, have protected themselves against any liability.The rules of cash gifting programs are easy to follow. Those who have been invited to join must be at least 18 years of age. In the beginning, the new people who have been invited to join will be doing the giving, but these people progress on to those who are receiving, and each individual member has the freedom to decide how much they will give to the project. Cash gifting programs do not have the hierarchy like network marketing businesses do, and one member does not receive more than another because he joined the membership earlier.Cash gifting programs are also known as private sharing clubs indulging in a private activity. These clubs are not a pyramid scheme because they are not created to defraud people with bogus products; these programs are not selling anything. If before joining a cash gifting program people check them out thoroughly and then follow the tax laws of their countries, they will find that they are not participating in anything illegal.