Gifts (especially those for college) are not taxable. But they are reportable.http://www.irs.gov/Businesses/Gifts-from-Foreign-Person
Thanks
The Detectives Endowment Association probably has a 501(c)(3) set up to raise and disperse funding. I am part of an education foundation that issues scholarships to employees or the children of employees. As far as I know the funds are provided tax-free. Depending upon how funds are disseminated through the association, the higher US tax rates can probably be avoided especially if Officer Liu’s father isn’t working.