1. Matt is a professor at TSU. Matt is a retired executive who does not need his TSU salary. Each pay period, Matt informs the TSU payroll department to give his pay to a different charity selected by Matt. Is Matt taxed on the TSU salary?

2. Matt is a professor at TSU. Matt is a retired executive who does not need his TSU salary. After working at TSU for one year, Matt tells TSU that he will no longer accept his salary and that the university should do something worthwhile with the money. TSU establishes the Matt Scholarship fund and uses Matts salary to fund it. Is Matt taxed on the salary?