GIFTING CLUB
gifting club.A type of pyramid scheme or Ponzi scheme in which recruits make “gifts” of
money to other club members with the expectation that future recruits will make “gifts” to the
present recruits. • Many gifting clubs limit membership to women. Club leaders usu. try to evade
income-tax laws by claiming that the money paid in by a recruit is a tax-free “gift” to a club
member and warning new recruits not to expect “gifts” in the future. Some states forbid gifting
clubs as illegal pyramid schemes. Other states hold that the clubs are illegal lotteries. — Also
termed gifting circle; sisterhood; birthday club. See PONZI SCHEME. [Blacks Law 8th]