Gifting Clubs are illegal pyramid schemes. The problem is that, like most pyramid schemes, illegal gifting clubs must continually recruit ever-increasing numbers of members to survive. These clubs may try to attract members through faith communities or service organizations.

If you're approached about joining a club but you aren't sure if it's an illegal gifting club, the Federal Trade Commission reminds you to:

• Consider that a legitimate gift has no strings attached and is not an "investment."
• Avoid being misled into thinking a gifting club is legitimate because the ads say that members consider their payments a gift and expect nothing in return. This is an attempt to make an illegal transaction look legal.
• Be wary of success stories or testimonials of tremendous payoffs. Very few members of illegal gifting clubs or pyramid schemes ever receive any money.
• Take your time. Don't buckle under a highpressure sales pitch that requires you to join immediately or risk losing out on the opportunity.
• Remember, solid opportunities and solid friendships aren't formed through nervewracking tactics.