I am creating a business where I provide consulting services to Fraternities and Sororities. I am setting up a non-profit where I would help them reduce costs associated with memberships in their prospective clubs and receive membership fees to manage. I would like to start them in businesses where I make them LLC's so that they all use the same tax ID. I would have them then gift all earnings to the Fraternity or Sorority associated with each LLC. The nature of the businesses being set up require membership forever but not necessarily participation.

My question is are the gifts tax free? I'm not attempting to avoid taxes but simply to make sure that once graduated each person involved has no more association with the business and do not have to worry about having their earnings from their participation in this taxed individually.

Feel free to poke holes in this and make suggestions to improve upon this system.

Thanks for your time