The People’s Program at thepeoplesprogram.com is an illegal cash gifting program. If you’re researching them or involved in it, this is probably not what you want to hear, but I’ll prove it to you during this review.

The main page in warm and fuzzy, they go on in every way about how it’s not a business, nobody makes or earns money, and lots of pictures of families with kids. It’s not until you enter the password and see the rest that they get down to business with phrases like “revolutionary, residual, hybrid cash-flow system” and the “power of residual cash-flow!”.

This is sounding less and less like the main page every second. Also there is a password needed to see all this which is suspicious in itself for any business.

Ok on to my proof, you won’t need to be a lawyer to figure this out, I’m not. First off, they only accept payments by private courier and never the post office. The reason for this is because when you commit mail fraud, postal inspectors have broad powers and their nightmare begins. Tell a place like this you want to send it by U.S. mail since the post office is convenient for you and they will never accept it, even if they think it’s your entrance fees.

The other way to tell is the tax laws. First, all income must be claimed, and the IRS does allow the private gift giving of up to $12,000 a year tax free (it was originally $10,000 when passed, but since adjusted for inflation). The definition of a real gift that’s not taxable is one where there’s no expectation of anything in return.

It clearly states to enter the program you have to give a gift to someone between $150 and $10,000 along with the $50 admin fee, or you’re not allowed to invite anyone. Anyone you invite brings you residual income from anyone they invite, depending on what level you’re at (determined by the amount you pay initially, you’re buying placement at the company).

They have lists of words you can and can’t use like up-line, income, even make and earn can’t be used. On the list of words to use are “Constitutional Right” and “Golden Rule”. There’s even gifting form templates with legal wording to try to insulate them legally. Last I heard you don’t need to fill out a legal form to give a gift.

In summary this is a business, it’s taxable income. Usually just desperate people get into these, so that’s where most of your money will be coming from. I’ve spoken with and know personally people who’ve done this with disastrous results.

One of the things, aside from the IRS, is when they fold (they usually last six months to two years) a friend of ours was living in his parents basement under an assumed name because of the number of people trying to sue him in small claims court to get their money back.

When either it’s investigated (the first one he tried) or the originator makes a money grab and vanishes (the second time he tried one) the people who gave him this money wanted it back from him.  Nothing like default judgments and liens on your belongings to stress what a bad idea a gifting program is.

The worst was the last woman I spoke with who had just gotten her daughters first year of college tuition together working as a phone operator for several years and the gifting program promised a huge return on her money. She said they guaranteed it! She sent the whole tuition in cash, in a FedEx box, so she could get enough return to put her daughter all the way through her bachelors degree. Thirty days later they vanished without a trace.

I’ve spoken with thousands of people over the years, and this is one reason why I make these reviews, it’s the real life stories I’ve heard. If I can help one person avoid disaster like this per review I’m happy. It was all worth the time. If you want to see the only business I do, and also a really good example of an ethical one, click to my Top Pick page and you can find out.