I suggest you absolutely want to set up a charitable non-profit organization. It confers tax benefits, contributors can deduct the contributions as much as possible, and you can avoid paying sales tax on any purchases you make on behalf of the organization. There are procedural steps you need to take in order to ensure it is done correctly. If you don't set up an organization, all contributions could conceivably be taxed as personal income to you or the family member. I suggest you contact an attorney to assist you with the process. My office would be more than happy to assist you.
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