What is private gifting?

Private gifting is a concept embraced by private groups of consenting adults as individuals and has existed for many years. This private activity does not involve network marketing, multi-level marketing, or a kind of business nor commercial ventures. There are no business transactions, investments and/or securities involved in this activity. There is no business or company name or location and there are no directors, officers, shareholders or principals. Private Individuals simply voluntarily support each other in a team concept which helps change participant’s lives.

The concept of private gifting is based upon the fact that both American and Canadian citizens have the Constitutional right to gift property, cash and other assets, and are subject to the rules and regulations established by the laws. The U.S. gifting rules are found in the IRS Tax Code, Title 26, Sections 2501-2504 and 2511.

The law states that one or more individuals can give a gift to another individual of up to $13,000 each per calendar year without any tax liability to the receiver of the gift, because any taxes on the gift has already been paid. Per the Law GIFTS, Donations, Pledges, contributions, etc., are not included in the gross income of the recipient. Also, see United States, IRS Publication 950.

How did this concept begin?

Privately, giving gifts to one another has always been an expression of appreciation and kindness, which has been happening for centuries. Governments have allowed and supported its practice by allowing institutions and individuals to share their wealth with families, friends and others. It has always been a means of helping and blessing others on special occasions or when the need arises.

Many cultures gift as a matter of course. Asian, Jewish and South American communities give gifts to individuals within their culture on a regular basis so that they may start a business or buy a home. They in turn gift someone else to help enhance their lives. Habitat for Humanity is a great example of private giving. Everyone participates with their time, their talents and materials to build a home for someone else. Some participate with a hammer, some with nails, some with food and others with the monetary gifts to purchase the supplies, but all create a team that works together to bless someone's life.