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Would it be possible to take the winnings non anonymously and immediately donate 100% to a ‘charity/foundation’ (that funnels money back to her at constant rate

Would it be possible to take the winnings non anonymously and immediately donate 100% to a ‘charity/foundation’ (that funnels money back to her at constant rate)?

vpribish 9y ago
the point is that everyone would know that she is now rich.
stickydink 9y ago
Sure, you can do what you want with the money, right? But that doesn't solve the problem of her name being public.
gamblor956 9y ago
Yes to the first part, no to the second as that would be tax evasion. She could put it all into a grantor trust (an asset holding entity which is not a charity or a foundation) which pays her an allowance at a constant rate.
- IncRnd 9y ago
  Actually, the second part is very legal and is done all the time. In fact, people who donate large sums to University and other charitable causes do just that, receiving payments in return. FYI, when politicians say they donated XYZ to their personal foundation or trust, this is many times what has happened.
  - deleted 9y ago
    [deleted]
  - gamblor956 9y ago
    A charitable trust is not a charitable organization for tax purposes but can receive deductible donations. It cannot send money back to donors. A foundation generally is a charitable organization and can receive deductible donations, and similarly cannot send money back to donors. In fact, people who donate large sums to University and other charitable causes do just that, receiving payments in return. Citation needed. What you have described is not a donation, and would indeed be a violation of the University's fiduciary responsibility with respect to donations. The consequence is generally that the University would lose its non-profit exemption. Most likely, you are conflating a contribution to a family trust with a contribution to a charitable trust. Transfers to a family trust can be revoked, and the trust can pay money back to its grantors or trustees because it's not a charitable organization and does not have a charitable purpose. A grant to a charitable trust is irrevocable, and cannot go back to the donor.
    - IncRnd 9y ago
      That's a lot of words for, "I don't believe you." A citation is needed for your assertion, please. Here is a page at the University of Chicago that describes how that university implements charitable gift annuities. https://campaign.uchicago.edu/join-the-campaign/giving/planned-giving/life-income-gifts/charitable-gift-annuities/ https://campaign.uchicago.edu/join-the-campaign/giving/plann...
      - gamblor956 9y ago
        Charitable gift annuities don't have the result you describe. For starters, they're only partially deductible, and you have to pay taxes on income earned by the annuity. In effect, a lottery winner would pay taxes twice: first on winning the income, and then when receiving money from the annuity (because a partial charitable deduction wouldn't offset the annuity income and for a gift in the millions would be capped anyway).
        IncRnd 9y ago
        > Charitable gift annuities don't have the result you describe. Really? They have exactly the results I described. In what way do they differ from what I wrote? Charitable Gift Annuities are not theoretical, despite you having gone from protestations that Universities would go out of business for engaging in them, to now saying that I wrote things I didn't. P.S. A deferred annuity for a lottery is an entirely different product from a charitable gift annuity.

Would it be possible to take the winnings non anonymously and immediately donate 100% to a ‘charity/foundation’ (that funnels money back to her at constant rate)?

vpribish 9y ago

the point is that everyone would know that she is now rich.

stickydink 9y ago

Sure, you can do what you want with the money, right? But that doesn't solve the problem of her name being public.

gamblor956 9y ago

Yes to the first part, no to the second as that would be tax evasion. She could put it all into a grantor trust (an asset holding entity which is not a charity or a foundation) which pays her an allowance at a constant rate.

IncRnd 9y ago
Actually, the second part is very legal and is done all the time. In fact, people who donate large sums to University and other charitable causes do just that, receiving payments in return. FYI, when politicians say they donated XYZ to their personal foundation or trust, this is many times what has happened.
- deleted 9y ago
  [deleted]
- gamblor956 9y ago
  A charitable trust is not a charitable organization for tax purposes but can receive deductible donations. It cannot send money back to donors. A foundation generally is a charitable organization and can receive deductible donations, and similarly cannot send money back to donors. In fact, people who donate large sums to University and other charitable causes do just that, receiving payments in return. Citation needed. What you have described is not a donation, and would indeed be a violation of the University's fiduciary responsibility with respect to donations. The consequence is generally that the University would lose its non-profit exemption. Most likely, you are conflating a contribution to a family trust with a contribution to a charitable trust. Transfers to a family trust can be revoked, and the trust can pay money back to its grantors or trustees because it's not a charitable organization and does not have a charitable purpose. A grant to a charitable trust is irrevocable, and cannot go back to the donor.
  - IncRnd 9y ago
    That's a lot of words for, "I don't believe you." A citation is needed for your assertion, please. Here is a page at the University of Chicago that describes how that university implements charitable gift annuities. https://campaign.uchicago.edu/join-the-campaign/giving/planned-giving/life-income-gifts/charitable-gift-annuities/ https://campaign.uchicago.edu/join-the-campaign/giving/plann...
    - gamblor956 9y ago
      Charitable gift annuities don't have the result you describe. For starters, they're only partially deductible, and you have to pay taxes on income earned by the annuity. In effect, a lottery winner would pay taxes twice: first on winning the income, and then when receiving money from the annuity (because a partial charitable deduction wouldn't offset the annuity income and for a gift in the millions would be capped anyway).
      - IncRnd 9y ago
        > Charitable gift annuities don't have the result you describe. Really? They have exactly the results I described. In what way do they differ from what I wrote? Charitable Gift Annuities are not theoretical, despite you having gone from protestations that Universities would go out of business for engaging in them, to now saying that I wrote things I didn't. P.S. A deferred annuity for a lottery is an entirely different product from a charitable gift annuity.