Foolish statement. You want to put the guy in federal prison too?
This is not compensation for services, nor a prize. If I buy Race lunch because I like him, that's not income to him. What's different about these small, gratuitous donations?
Gift Giving
"Tax Tip 2004-38, Feb. 25, 2004
If you gave any one person gifts valued at more than $11,000 in 2003, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.
The person who received your gift does not have to report the gift to the IRS or pay either gift or income tax on its value.
You make a gift when you give property (including money), or the use or income from property, without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift."
As long as no one person gives more than $11,000. no federal tax is due. It does not even need to be reported. And if someone gives more than $11,000. it's the "giver" who owes a gift tax.
I would check the state law there, but I don't believe you will owe any tax on this money.