Compliance review required. Plans that pay returns on money contributed, rather than on retail product sales, are classified as investment contracts, pyramid schemes or unlicensed deposit-taking in many jurisdictions (including the US, EU, India and most of APAC). DIRSL enables this plan only after document review, blocks it in restricted regions, and requires the customer to hold the applicable licence. Nothing on this page is legal advice.
Overview
A gift or donation plan (also 'help plan', 'cash gifting' or 'crowdfunding MLM') has members send a gift directly to an upline member, then receive gifts from members who join below them. Progression levels define the gift amount at each stage: give $100 at level 1 to receive $100 from two members, then give $200 at level 2, and so on. The company usually charges an admin fee and runs the matching.
Because no product changes hands and payouts depend entirely on new entrants, this plan is classified as a pyramid or Ponzi scheme in most of the world. There are narrow legitimate uses, for example registered charities running member-driven giving circles, or crowdfunding platforms with real projects, and DIRSL supports only those after review.
DIRSL's implementation includes peer-to-peer matching, confirmation workflows, upload of proof of gift, level progression and strict region gating, and is available only on an approved basis.
How it works
- 01
Compliance review
The operator must demonstrate a lawful structure (registered charity, licensed crowdfunding or similar) in each target region.
- 02
Join and give
A new member is matched to an upline recipient and sends the level-1 gift, uploading proof.
- 03
Receive from downline
When members join below, the system matches them to give to you until your level-1 receive count is met.
- 04
Progress to the next level
Part of what you received funds the level-2 gift to a higher upline; the remainder is yours.
- 05
Verification
Every gift is confirmed by the receiver; unconfirmed gifts block progression.
Worked example
A three-level progression (illustrative only)
- Level 1: give $100, receive from 2 → $200
- Level 2: give $200, receive from 4 → $800
- Level 3: give $400, receive from 8 → $3,200
- Admin fee 10% per receive
- Assumes every position below fills, which is not guaranteed
Requires 14 new members below you to complete. The majority of participants in gifting structures never recover their initial gift.
Bonuses & configuration
| Bonus | Trigger | Typical | Notes |
|---|---|---|---|
| Receive levels | Members join below | 2–8 gifts per level | P2P, not from company |
| Referral bonus | Direct enrolment | Small fixed | From admin fee |
| Progression | Level receive count met | Automatic | |
| Re-entry | Top level complete | Optional |
Strengths and watch-outs
Strengths
- Extremely simple mechanics
- No inventory or product operations
- Fast early payouts for first entrants
Watch-outs
- Illegal as cash gifting in most countries
- Mathematically guarantees most participants lose
- No product means no retail defence
- Banks and processors refuse the model; cash/crypto only
Rank ladder
FAQ
No. Only registered charities, licensed crowdfunding or legally supervised mutual-aid programs are considered, and only in approved regions.
Because customers ask for it and because the same engine powers legitimate giving-circle and crowdfunding use cases.
No. Gifts are peer-to-peer; DIRSL matches, tracks and verifies. The platform never holds gift funds.
Legitimate crowdfunding funds a specific project with disclosed use of funds. Gifting MLM funds the upline with no project.
Legal entity type, regulator registration, target regions, disclosure text and fund-flow design.
Yes. A unilevel or affiliate plan on a real product or service.
Glossary
- Gift
- A direct transfer from one member to another.
- Receive count
- Number of gifts required to complete a level.
- Proof of gift
- Uploaded evidence that a transfer happened.
- Giving circle
- A charitable structure where members pool donations.
- Admin fee
- The operator's cut of each receive.
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