GIFTING CLUBgifting 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. ¡ª Also termed gifting circle; sisterhood; birthday club. See PONZI SCHEME.
What is the legal translation of GIFTING CLUB in Chinese?