[Hugin]

You're right, I'm not saying that, in fact I said the opposite. If you set up a charity and the primary beneficiaries are relatives, the IRS may view it as tax evasion. For example you could set up a fund to give scholarships to kids in your hometown, that's fine. If you give all the scholarships to your grandkids, the IRS will likely say it's just a tax evasion scheme.

[DeaconBenjamin]

Likewise, if you make a gift to an existing charity, intending that the gift will benefit a family member, the IRS will take a similiarly dim view of the transaction.