How Legal Gifting Through Cash Works
Could it be the fear of accepting that which appears to be a non-standard method of cash exchange with others, that makes it appear to some to suspect or suggest, without proof, the presence of deception? Perhaps one of the primary barriers to successful programs in cash gifting is mostly a mental one. Through the process of simple rules, one should certainly prosper.
There are long-standing traditions in several cultures, specifically in Asian and in Jewish, that of creating financial stability through unity, specifically through the process of cash gifting. Even as Western culture focuses on the traditional notions of self-accomplishment, self-merit and self-determination, still, other cultures find their virtue in the fruits of community bonding.
Some of the perceptions in Western culture relates to an impression that cash gifts somehow represents a less than legitimate match for traditional commerce, and, therefore, is somehow robbing mindshare, and, of course, shifting assets which might be shifted to commercial activity and replacing it with something that is somewhat less deserving of formal recognition. This combination of a lack of awareness, and the fear of recognizable competition, is, therefore, erroneously perceived as a usurper by some who might choose not to participate, or even to judge clearly.
That objection is from a paradigm of ‘scarcity’, or one of limited resources. It pretends that gifting is composed only of recipients, while ignoring the ‘products’ of the resulting output of those who magnify their receipts into a plethora of other actions. The late Jim Rohn said that if you feel that your cup is already full, you can only give it the capacity to be refilled only by first emptying some from the cup first. You could eventually receive more in return than that which you remove, if you will only allow it to happen.
Legally, the annual limitations placed on gifting of any kind create a well-supervised monitor of activity. Question – Would there be legally defined limits on gifting if gifting were illegal? This is certainly not to say that cash gifting in any any form is legitimate. There is a saying in the financial markets – “Pigs get fat, hogs get slaughtered.” Gifting through cash is illegal when it goes outside of the regulations. Even Bernard Madoff took advantage of legitimate instruments, financial derivatives, or options, in an improper exercise of structural deception to defraud others of an estimated $50 billion for his own purposes. Thousands of others, however, create a living by following the rules that Madoff cast aside, as they use those same tools day in and day out. I use them myself to create above average returns in very short periods of time, but, naturally, only with a small portion of my portfolio, due to the risks involved. I do this by knowing the rules and the risks, and by following cues of a technical, legal, and, of course, an emotional nature. Similarly, there is a healthy level of gifting activity that provides benefit to those who honestly participate, with absolutely no threat of any kind to other well intended, mostly commercial activities.
It’s my long-term plan to ultimately dispose of excess resources by ‘gifting’ to as many of a carefully chosen group and/or individual recipients of my contributions as possible, to be used as they please. It is an unfortunate fact that underfunding exists in far too many areas, in public, private and non-profit areas and locations.
As I continue to open up as many streams of liquid assets as possible, I will create an advantage over others who are bound within their own self-imposed limits, and with those limits that do not exist elsewhere, exceeding those of long-standing cultural or legal origins