Some of us have security blankets, some have St Christopher statues on our dash boards, so if a provider feels safer with an envelope rather than a bunch of cash, so be it.

IMHO, an envolupe avoids flashing cash but provides nothing for LE protection.  It's convenient to keep the correct amount separated & ready.  But so is a paper clip.  A while back there was a joking referance...  house keeping could always tell a provider's been there...  by the envolupes in the trash.  (BTW, one fav lady brings a shopping bag, removes her own trash like envolupes & wrappers... disposes of it away from the room!)  

On first meetings, ladies usually want the donation in advance.  

My Fav ladies are old school...  where it was customary for a gent to leave the donation on her dresser as he is leaving.
I've refined this...  I normally empty all my pocket junk when undressing.  When redressing, I fill er up again.  I place the donation in my key pocket, so when undressing it goes on the dresser with everything else.  My clothes on a chair nearby.  
My "GF" & I engage in what ever adult play we choose.  Some perve could watch the whole thing & we've not done anything illegal.  (A perve might get arrested, however.)  My property remains my property!!!  
One to several hours later, I redress & refill my pockets with the clutter.  Oh, gee, did I leave something behind?  Are you sure?
We're back & forth to her bathroom, helping each other dress (or not...  she complains it's easier to fasten her bra without my hands, LOL!), she might pick up something from her dresser.  IF she does, she doesn't discuss it.  We hug, kiss, last time she cooked up some shaved steak for lunch, before I left.
This would be like trying to catch a card shark, who only makes one move in a whole game.  Frankly we do this as much to keep the illusion & enjoy the ride...  

I repeat, I do not think an envolupe makes any differance, except it is bulky in my front pant pocket.  The way to protect yourself as much as possible is to never be in a room with LE.  The way to minimize the risk (and there is no way to make it zero) is to research properly in advance & stick with well reviewed ladies.
skb

I'd say it DOES protect the lady IF she does not ask for or take note of an envelope BEFORE the fact.  While an argument can be made for a constructive solicitation based on an ad or whatever, LE is generally prohibited from engaging in the act.  If the money doesn't change hands till after the fact and is not mentioned period, she should be home free.

For the customer, the issue is to never be in a room alone with female LE posing as a provider.  Once you get there, nothing much is going to help you most likely.  But using an envelope is just dignified, IMHO.

.02

MVR

This is a very tricky one.

One would think upon reading the statutes, that in order for there to be a charge of prostitution, that (1) money has to change hands and (2) there has to be a sex act.

This is not true.

I'm not going to get into detailed discussion of solicitation vs prostitution vs pandering.  But, what I will point out is that there have been MANY successful prosecutions for prostitution with nothing more in the way of evidence than a guy, a girl and an advertisement.  As one DA put it:  the police do not need to hear a discussion of sex acts to be performed, nor do they need to see money change hands.  It's enough for a guy to show up at a girl's hotel room in response to an ad on Craigslist.

From the girl's point of view, what the envelope provides is a security blanket.  It provides her comfort that you have read her website, know what her rules are, and have shown courtesy and respect in following her rules.

It also provides comfort to her that you are not LE.  Even though the envelope of money is not necessary for prosecution, what it means to the provider is that you are probably not a cop.  If a cop was already interested in her from her ads or website, as noted above, they don't need to come into the room with an envelope.  If the cops are coming into the room with money, it means they don't have enough evidence yet and they are trying to get her to do something by way of admission.  Accepting cash and a discussion of sex acts would be such an admission.  Furthermore, if the police were trying to get her to make an admission, they wouldn't use an envelope of cash - they'd have to hand the cash to her directly in order to be able to testify later that she accepted cash because otherwise she could rightfully claim later that she didn't know what was in the envelope.  So by laying the envelope down on the table, it means to her that you're probably not a cop because the cops probably wouldn't do that.  Probably.  There are no certainties here because police have been known to do a number of strange things....

As a side note, look at what happens at massage parlors when the police raid them.  All they need is to see a guy and a girl on the massage table having sex to arrest them for prostitution.  They know the guy paid at least *some* money to get into the massage room so they already have enough evidence that the guy paid money and received sex.  They don't need to see you tip the girl, or discuss with her that you wanted more than a regular massage.  The inference can be drawn from the observable evidence that prostitution occurred.

Anyway, back to the issue of the envelope:  
As a guy who engages in this hobby, I prefer the GFE girls.  That is, I want a girlfriend-like experience.  That means that even though I know I'm paying for it, I don't want to *feel* like I'm paying for it.  I don't want to talk about the money.  I don't want to sit there discussing what she'll do and for how much.  I don't want to sit there and count out money.  I want to lay the money down, forget about it, and have a good time.  So, for me, laying the money down on a table in an envelope without any discussion means I can get on with my "date" without the business part interfering in any way.  I generally have a much more enjoyable time that way.

If you've read up to this point, let me remind you: I am NOT a lawyer, this is NOT legal advice, and NOTHING I say here represents anyone's opinion but my own.  So there.  

To think that the envelope provides you any protection is ridiculous. Instead it is just a sign of what you are really doing. Feeling like you are being discreet (you actually aren't anyways) does not change the fact you are breaking laws. It's like say I didn't really shoplift because I put the merchandise under my coat when I walked out of the store. If anything, hiding merchandise in your coat is a sure sign you are going to shoplift. Personally, I don't use envelopes and never will.

If my friends bring me a real birthday cards or greeting cards and write gift or happy birthday on the front of my card or envelope and have it ready for me when we meet. Is this not a gift. I have been doing this for years. Just wondering the facts about the old envelope deal. Thanks.

Besides the false sense of security, there's another, more psychological benefit to the envelope that I see reflected when ladies have talked about the envelope.

Money on nightstand = hooker

Money placed "discreetly" in an envelope = high class escort who is contracted for her time and companionship only.

That little, white folded piece of paper helps maintain the fantasy for the provider. One provider said she feels tacky when the money is not in an envelope.

For me, I will do whatever makes the provider more comfortable. That is all that matters to me in regards to such a minor part of the whole process.

-tessen

You can get busted without even discussing funds. they play dirty out there.

With this procedure.  If the meeting is recorded, they do not have any mention of money or compensation.  With the money in the envelope, it could be claimed that she did not know what the envelope contains, or even that it was for her.

Will it keep anyone from getting arrested? not likely!  But maybe it may keep them from charging anyone, or put enough doubt that prevents conviction.  

But nothing is a sure thing in the hobby.

"Company and companionship" is NOT illegal....and "An ounce of prevention is worth a pound of cure".........I believe that doing the homework saves alot of anxiety, and alot of potential problems.....On both ends of the hobby......Check reviews/references......stick with those already known......by SOMEBODY!!.....and then the envelope becomes less of an issue.......safety, and then fun!