[trs8080]

Yes, because pocketing money directly from fundraising activities for a 501c3 is illegal, regardless of if you pay capital gains on it.

[mrep]

I'm not sure what you are saying.

Donating capitol that has gained value to a non-profit to then use to pay yourself a salary with causes you to pay more taxes than if you had just realized the gains and skipped the non-profit as cap gains taxes are lower than income taxes for the top bracket.

OP "legal scam" causes them to pay more taxes.