24. A major donor, Jasmine, approaches Tina, a major gifts officer for the Harristown Art Museum, a 501(c)(3) tax-exempt, nonprofit organization, with a proposal. Jasmine has inherited an art collection of five Picasso paintings valued at $25 million. She discovers that she is liable for inheritance taxes on the value of the collection in excess of $5 million. What she would like to do is “donate” the collection to the museum to avoid inheritance taxes, with the proviso that she can keep the art collection displayed in her home and the museum is prohibited from selling, lending, or other transferring the collection until after her death. The museum would be required to keep the arrangement a secret, other than providing the typical substantiation letter to Jasmine, and agreeing to pay for a routine appraisal of the collection. Tina doesn’t think this would be a problem, and tells Jasmine that the museum would be delighted to accept her donation.
a. Is this proposed arrangement between Jasmine and the museum ethical?
b. Is this proposed arrangement legal?