A guy I know has this bright idea: set up a non-profit, presumably
501(c)(3), make tax deductible contributions to it, and pay grants out to fund research being done by a relative. The relative's research is legit, she's gotten a Fullbright to support part of it, but this strikes me as transparently illegal.He argues that it's fine, or alternatively that if done at small scale the IRS will never notice. Advice welcome, particularly with citations.