Have you ever been invited to a Women's Gifting Circle? I have been invited three times in the past few months. In the past few weeks more than five of my friends have been invited by multiple groups. "Gifting Circles" are not circles and the "gifts" are not gifts. These groups are illegal pyramid structures.
Learn more about the details, structure and non-viability of Gifting Circles. I describe in detail how they operate and ultimately fail. They neither create abundance nor empower women. These systems need to stop. We need REAL, sustainable economic empowerment opportunities for women, not scams.
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The Problem With Gifting Circles - It isn't a Gift or a Circle
1. The problem with
“Gifting Circles”
It isn’t a Gift or a Circle
To read the blog, visit www.green-ideas.com
2. Why am I doing this?
This
information
is needed
I am
passionate
I have the
knowledge
More than five of my
closest friends have
been invited into a
“Gifting Circle” in the
past three weeks.
I am committed
to a radical re-
visioning of our
economy one
that moves into
alignment with
Earth’s rate of
regeneration
I have spent a good
portion of my
career exploring
economic
empowerment
of women.
I have been invited
to three different
“gifting circles.”
3. This is URGENT!
“Gifting Circles” have caught like wildfire
Most women
don’t understand
that this type of
growth always
has a collapse
Many women are in
desperate economic
situations
The women who
profit don’t see
other women in
the subsequent
circles get hurt
Women need
to understand
the math on
why this
system isn’t
sustainable.The more
women
involved, the
more get hurt.
Turning $5k
into $40k is
very alluring
4. The economic need is significant
Over 24 million
women live
below the
poverty line in
the US
25% of women
with infants live
in poverty
Only 6% of
mothers in
poverty receive
public
assistance
Women are desperate
for new economic
opportunities
That enable
them to
provide for
their families
Women need truly
sustainable economic
opportunities
We need sustainable alternatives to an unhealthy economic system!
5. What you will see in this presentation
Introduction to a Gifting Circle
The Visual Math of Gifting Circles
Why They Must Always Collapse
The Impacts and Consequences
Sustainable Alternatives
6. “Each woman gives a gift of $5,000 to another
woman to support her in financial empowerment and
manifesting her dreams.”
“Each woman moves through the circle, arriving at
the Dessert position, where you receive eight gifts of
$5,000, totaling $40,000.”
“The Circle is a way to achieve personal growth,
remove blocks to manifesting, and participate in a
path to personal empowerment that teaches us to
support each other on many levels.”
I was invited to a “Gifting Circle” called
“Women Empowering Women” where:
7. Why the Gifting Circle attracted me
A close group of women
creating abundance together
Money - I could turn $5,000 into
$40,000 in just a couple of months –
this could pay back my student loans
or help with a house downpayment!
Sisterhood - I could have an amazing
support group of other spiritual
women – something that I have been
missing in my life.
Trust - A close trusted friend invited
me – she and I share a lot of the
same values and perspectives on the
world.
8. This is what I was told about the circle
“Our Circle is NOT a hierarchy; it is a
Circle. There is no one at the ‘top’ or
at the ‘bottom.’ Unlike a ‘pyramid,’
women are constantly cycling
through ALL the positions on the
Circle.”
“Since the early 1980’s, this circle
has remained unbroken, and has
grown in numbers, strength and
integrity. Today it is a powerful
moving force, providing many
blessings to the women who
participate.”
“Nobody loses in order for you to
win. Our intention is to benefit
women, PERIOD.”
“It's very important that we
understand we are truly giving a gift
when we come into the Circle, like a
birthday or Christmas present. It is
not an investment.”
9. Sounds great right? But . . .
Here is what I learned:
I researched the legal issues . . .
I did the math . . .
Something didn’t seem right . . .
10. The Story of a Gifting Circle
Dessert
The first woman didn’t make any
investment, but suggested that the women
who followed her could earn 8x on their “gift.”
She asked them to “trust their intuition and
disregard the negativity bias perpetuated by
patriarchal nay-sayers.”
The circle I was invited to used a “dinner party” theme to differentiate the levels
12. And with weekly “abundance calls” they
found four “Salads” who also gave $5,000
Dessert
Tally = $30,000
Entrée
Salad Salad
Entrée
Salad Salad
Tally
7 women
$30,000
13. And with all the good vibes they found
eight “Appetizers,” each gave $5,000
Dessert
Tally = $70,000
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Round 1
15 women
$70,000
14. The first Dessert walked away with
$70,000 and nobody knows who she is!
Dessert
Remember, the first woman didn’t
make any financial contribution
16. DessertDessert
Receive $40,000
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Dessert
Receive $40,000
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
They split into two groups
Round 2
2 circles
30 women
$80,000
Tally in Round 2
31 women now involved
$150,000 “gifted” or invested
3 women have profited
NOTE: Appetizers pay $5,000
directly to Dessert. When
Dessert receives $40,000 she
steps off the “circle.”
17. Round 3
4 circles
60 women
$160,000
Tally – Round 3: 63 women now involved, $310,000 “gifted” or invested,
7 women have profited
Dessert
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Dessert
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Dessert
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Dessert
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Then
Four
Groups
18. Round 4
120 women
$320,000
Tally– Round 4 - 127 women now
involved, $630,000 “gifted” or invested,
15 women have profited
Dessert
Entr
e
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Eight
Groups
Growth is Exponential
19. Round 5
240 women
$640,000
Tally– Round 5 - 255 women now
involved, $1,270,000 “gifted” or invested,
31 women have profited
Dessert
Entr
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16 groups
20. Can’t it just grow forever?
Human Population = Probably Not
Sustainable: Growth at our current
rate of consumption of the Earth’s
ecosystem resources will probably
lead to ecosystem collapse.
Gifting Circle = Not Sustainable: The
growth quickly exceeds economic
resource capacity (ability to bring in
new women at $5,000), inevitably
leading to collapse.
Growth That Exceeds Resource Capacity Always Leads to Collapse!
Population
doubling time for
the Gifting Circle is
6 months.
Global population
doubling time is
approximately
25 years.
21. But isn’t abundance infinite?
Gifting Circle Limit: At round 31
in the gifting circle, the number
of participants required is 17
billion women, investing $85
trillion, exceeding our economic
and human capacity.
Economic Limit: The total human
population on Earth is 7 billion
people and the value of the
global economy is $69 trillion. It
is estimated that the Earth can
only support about 12 billion
people.
In the non-physical
realm, abundance
is infinite, for
example:
Love = infinite
Joy = infinite
The physical world
is finite: We are
limited by
population, econo
my, etc.
It’s exciting to live in a finite world. It causes us to be more creative!
22. But what about The Law of Attraction
(thought + allowance = manifestation)?
The Law of Attraction isn’t
about fixating on a material
object, such as money. Money
rarely brings the happiness or
“abundance” we think it
should.
The way to manifest using the Law of Attraction is to focus
on the feeling of abundance and gratitude, which will
bring more abundance and gratitude, arriving in the form
most authentic to what is really desired, often not in the
form of money.
“I’m not hurting anyone else by manifesting
financial abundance for myself, right?”
Manifesting “abundance” does not
necessarily mean manifesting money.
Within the “gifting
circle” structure, in
order for some to win,
most women lose
23. In order for the “Desserts” to profit,
at least 88% must lose their money
Round
Number of
Circles
Women
Involved
Cumulative
Dollars
Invested
# of women
who have
profited
# of women
who have
lost money
% of women
who lose their
money
1 1 15 $70,000 1 14 93%
2 2 31 $150,000 3 28 90%
3 4 63 $310,000 7 56 88%
4 8 127 $630,000 15 112 88%
5 16 255 $1,270,000 31 224 88%
6 32 511 $2,550,000 63 448 88%
7 64 1,023 $5,110,000 127 896 88%
8 128 2,047 $10,230,000 255 1,792 88%
9 256 4,095 $20,470,000 511 3,584 88%
10 . . . 512 8,191 $40,950,000 1,023 7,168 88%
31 1 billion 17 billion $86 trillion 2 billion 15 billion 88%
24. Gifting Circles Increase the Divide
Between Haves and Have-nots!
12%
88%
Gifting Circle Profit Distribution
Women who profit
Women who lose their money
At some point, the circle must collapse, leaving 88%
without ever receiving a gift. Not exactly equitable.
25. But isn’t this better than the 1% taking
all the wealth in the US economy?
The US
economy
Gifting Circle
System
No! The
Gifting Circle
is Worse!
26. The Bottom 88% Lose Big Time!
$35,840,000
$(35,840,000)
Top 12% Bottom 88%
Gifting Circle Net Income
After Round 10
It’s the women
who are
shy, have less
time or just a
smaller network
that lose their
money.
27. Many women who join gifting circles
can’t afford to lose
I heard about a
woman who
used her student
loans to join a
gifting circle
One woman
cashed out her
small retirement
account to
participate
I know at least
three women
who have
borrowed money
to participate
28. The top 12% are taking from their
community (friends and family)!
What does the loss of $35 million do to a community? How does this impact friendships?
29. I haven’t yet measured the economic
impact, but it has ruined friendships . . .
It destroys trust
It creates a feeling
of inequality
Fosters feelings of
hurt or judgment
I have heard many stories of broken friendships and have
personally experienced the loss of friendship because of my
lack of support for a friend’s participation
30. “But if Dessert reinvests, it’s not a
pyramid, right?”
Dessert
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
31. Dessert becomes one of 16 appetizers
Dessert could reinvest her entire $40k, replacing all the other appetizers for ONE group (but since the
group split, the need is now $80k). Also if she wants the 8x return (like $5k to $40K), she would need
to invest in 8 different groups and help bring in 64 new appetizers to make that happen.
Dessert
Dessert
Receive $40,000
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Dessert
Receive $40,000
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
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Appetizer Appetizer
Salad
Appetizer Appetizer
Remember the
group splits!
Previous dessert at $5k
It’s still a pyramid!
32. No matter which way you frame it
Dessert
Entrée
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Appetizer
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Appetizer
Appetizer
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Appetizer
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33. Or what you call it . . .
Dessert
Entrée
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Appetizer
Appetizer
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Appetizer
Appetizer
Entrée
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Appetizer
Appetizer
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Appetizer
Appetizer
35. A “Gifting Circle” isn’t a Circle
Dessert
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Entrée
Salad
Appetizer Appetizer
Salad
Appetizer Appetizer
Nothing circular in
this shape!
36. It’s a Pyramid!
One that grows through repetition, not accretion (like MLMs) . . .
Instead of one big pyramid, you end up with a bunch of small pyramids
that replicate faster than rabbits – yikes!
37. And the “gift” is not a gift
ANY expectation or hope of financial
return by definition means that it isn’t a
gift.
If the “Appetizers” were truly giving a gift
without expecting a return, why do they
try to move up to the “Dessert” position?
There are many reasons women
participate, but the biggest one is the
hope of a $40,000 return. If this weren’t
so, many women would also be
participating in abundance circles that
don’t involve a financial commitment. I
don’t know anyone participating in such a
group.
If women were truly in the circle to gift
$5,000 to someone in need, the structure
would look very different – more like a
philanthropic organization or charity (it
would probably have the tax exempt
status too).
38. If it isn’t a circle or a gift, what is it?
It’s an Investment Pyramid!
39. Which is why it’s illegal
Learn the Law!
• http://oag.ca.gov/consumers/gene
ral/pyramid_schemes
• http://www.dca.ca.gov/publication
s/legal_guides/u-2.shtml
Participation is a felony governed under the “endless chain scheme law.”
Have you ever heard of a Ponzi Scheme or Bernie Madoff?
40. A number of women who reached
“Dessert” have felony convictions
Guilford, Connecticut –
May 2013 - two women
found guilty and sentenced to
14 years in prison for
conspiracy, fraud, and tax
evasion.
Sacramento, California –
2003, 20 women arrested.
Plead guilty to felony
charges, paid $150,000 each
in fines.
This is much worse than getting caught with a few illegal plants . . .
41. Links to Stories of Other Women Convicted
of Fraud for Gifting Circles
Maine, Texas and Pennsylvania: http://www.nytimes.com/2002/10/27/us/authorities-say-8-women-ran-12-
million-pyramid-scheme.html
Oregon:http://blog.oregonlive.com/complaintdesk/2012/12/the_desk_pyramid_scheme_seemed.html
California: http://www.sacmag.com/Sacramento-Magazine/March-2004/Sacramento-Women-Women-Helping-Women/
Connecticut: http://guilford.patch.com/groups/police-and-fire/p/jury-finds-guilford-women-guilty-in-gifting-tables-trial and
http://clinton.patch.com/groups/police-and-fire/p/report-investigations-into-gifting-table-schemes-will46882061b5
Michigan: http://www.mlive.com/news/muskegon/index.ssf/2010/12/seven_newaygo_county_women_cha.html
42. However . . .
THERE ARE SUSTAINABLE
ALTERNATIVES
43. Sustainable Economic Empowerment
Opportunities for Women are Growing
44% of coops are still in
business after 10 years, vs
19% survival rate for non-
coop businesses
Cooperative
Businesses
Social
Enterprise
Women’s
Entrepreneurship
Women will create
over half of the 9.72
million new small business
jobs expected to be
created by 2018
Women are
leading the way in
social enterprise and
outperforming
standard businesses
44. Lending
Circles
• (Savings
Clubs)
Sisterhood
Circles
• (Women’s
Groups)
Investment
Circles
• (Group
Investments)
Giving
Circles
• (Charity
Groups)
Women pool
their money and
make small-med
investments in
women-run
businesses.
Philanthropic
women’s groups
that pool their
money and give it to
a particular charity
or cause with a
501c3 tax status.
No financial
commitment, b
ut emotional
and spiritual
investment and
support.
10 people put in
$100/month and
at different points
of the year, each
person gets back
exactly what they
put in: $1,200.
And yes, there are sustainable Women’s Circles that
do economically empower women!
This is VERY different from the pyramid “Gifting Circle!”
45. There are lots of other ways to give, invest and
receive money that empowers women
Micro-
lending
• Kiva, Prosper, Acc
ion, TrickleUp, et
c.
Social Impact
Investments
• Investors
Circle, RSF Social
Finance, etc.
Crowd
Sourcing
• Kickstarter, Indie
gogo, etc.
Low interest
loans
• Small Business
Administration
• Rural
Development
This is a way
to legally
fund your
friend’s
project or
business with
a gift!
Women-run
businesses
qualify for
specific low-
interest loans
If you have
the money to
invest, Social
Impact Funds
vet new
ventures
If you have a
small
project, you
can apply for
micro-credit
46. Why “Gifting Circles” or Investment Pyramids Don’t Work
You will probably lose your money (you only have a 12% chance of
winning).
If you win, you do so by taking from other women.
It doesn’t empower women or increase abundance!
It’s an illegal pyramid scheme – you could face jail time.
It isn’t sustainable! It requires 8x growth, inevitably leading to
collapse.
There are many other ways to invest or give $5,000. There are many
sustainable systems and circles that actually empower women.
47. Who put this presentation together?
Amber Bieg, MBA, Sustainable Management
• Sustainable Business Consultant
• Social Entrepreneur
• Economic Feasibility Analyst
Wife and Mama
• Theo – 4 years old
• Toby – due in 4 weeks
• Chloe – 15 month old puppy
Artist, Explorer, Spiritual Seeker
• Fiber Artist
• World adventurer
• Philosopher
48. Stop the “Gifting Circles”
Invest in REAL abundance!
Share this with everyone you know
Thank you for taking the time to read this! For more visit www.green-ideas.com
- Amber Bieg
Remember . . . “Gifting Circles” are not circles and the “gifts” are not gifts.
These groups are neither creating abundance nor empowering women.
Notes de l'éditeur
Each gave her $5,000, she promised that together they could bring more women into the group to give gifts and that they too could get $40,000.