‘HOW’ Cash Gifting Works – The Reality
Is it the fear of accepting that which appears to be an unconventional method of exchanging gifts with others that causes some to suspect or suggest, without proof, the presence of malicious intent? At least one of the primary barriers to successful application of cash gifting happens to be a mental one.
There are long-standing traditions in other cultures, specifically Asian and Jewish, of creating financial strength through unity, specifically through the process of gifting. Even as Western culture thrives on the notions of self-accomplishment, self-merit and individuality, some other cultures find their virtue in the benefits of collective energy.
Some of the confusion in Western culture relates to an impression that gifting somehow represents illegitimate competition for traditional enterprise, and, therefore, is somehow removing mindshare, and, of course, redirecting assets which might be applied to commercial activity and replacing it with something that is much less deserving of formal recognition. This combination of a lack of understanding, and the fear of competition, is, therefore, erroneously perceived as a threat by those who would choose not to participate, or even to judge objectively.
That objection is from a mindset 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 recycle their gifts into a new sequence of other activities. The late Jim Rohn once said that if you feel that your cup is full, you can only create the capacity to carry more by first emptying some from the cup first. You might eventually receive more in return than that which you remove, if you will allow it to happen
Legally, the restrictions on the annual limits on gifting maintain a well-supervised monitor of activity. Why would there be legally defined gifting limits if gifting were illegal? This is certainly not to say that gifting in any form is fair and proper. Even Bernard Madoff used legitimate instruments, financial derivatives, or options, in an improper exercise of structural deception to defraud others of over $50 billion for his own purposes. Thousands of others, however, make their living by following the rules that Madoff ignored, as they use those same instruments day in and day out. I use them myself to create double digit returns in very short periods of time, but, of course, 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 signals of a technical, legal, and, of course, an emotional nature. Similarly, there exists a healthy level of gifting activity that provides benefit to all who legitimately participate, without a threat of any kind to other dissimilar, mostly commercial activities.
It’s my long-term goal to ultimately dispose of excess resources by ‘gifting’ as many rightful group and 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, both private, public and non-profit areas and locations.
By opening up as many approaches to accumulating assets as possible, I will maintain an edge over those who are bound within their own self-imposed limits, particularly limits that do not exist elsewhere, including those within long-standing cultural or legal traditions.