Gifting Circle Madness

Happy New Year Sofa Diary readers. I thought I would break into your regularly scheduled confessions to talk a little about a hot topic here on Javajune’s blog. Some time ago I posted my confession about being tempted to join a gifting circle of friends and since then we’ve had a confession from a woman who joined a gifting circle in her area.  I would like to open the floor (sofa) up for questions, comments and truths about these groups that seem to be popping up everywhere across the country right now. We have had comments for and against their existence on the two previous posts.

For those of you who don’t have clue about Gifting Circles the following is a brief description of how they work. Of course it is my take on the matter and I myself am not involved in one, so if I misspeak please feel free to correct me. Gifting Circles involve a group of people who come together for the soul purpose of  making money and friends. Each member contributes a sum of money, 5k seems to be popular, and the person in the receiver postion collects all the money. Then new blood is brought in with their money and the next person in line collects the dough. It could take months, weeks or even years for you to collect depending on how quickly your group gets new members and where you are in the circle.

I have been told it is an illegal pyramid scheme by some and that is not illegal or a pyramid scheme by others. This topic is one of the most hit-on subjects on my blog and generates a lot of controversial discussion and comments. Feel free to throw your 2 cents or 5k in (just kidding) and tell us what you know or think about the matter. The tough economic times and lousy stock market seem to generating a few new money making ideas out there. I have to admit that it all sounds very enticing but mostly just interesting.

jj