I know enough about tax law to do my own (which are pretty simple) and to otherwise be dangerous :-). So this is what I think happens and should not be taken as definitive or as advice. FWIW.
However I think these donations are counted as individual gifts. Which means gift tax rules apply and so long as there isn’t an individual donation above $10k all the money transfers to them tax free. And the taxes only kick in for individual donations above $10k.
But someone with more knowlege of tax law should definitely feel free to correct me.
I will add that with a take above $500k (which is what this should end up being from the looks of it) they should be able to hire a tax attorney with the money to figure it out and do the paperwork, pay any applicable taxes and still comfortably pay off the fine.
Thanks..that sounds correct. I’m glad that Melissa is getting these funds. I do hope that they are totally transparent, and post online exactly how they are using them...who gets what, how much, and why..