Because you donated huge sums to your nonprofit, it reduced your tax burden by a significantly high amount, and that is probably a higher amount than what your friends and relatives will pay in taxes on their paychecks in your foundation, so you were able to keep more dollars from going to Uncle Sam and among your circle of loved ones instead.

>Because you donated huge sums to your nonprofit, it reduced your tax burden by a significantly high amount

You know what also reduces your tax burden by a significant amount? Not taking the money out of your business and putting your friends/relatives on the payroll. That it also doesn't get taxed because it's a business expense. I'm not sure what the point of going through the charity is.