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]