Mr.Gates is the president of an established and successful company. The company pays Mr.Gates $1,000,000 in salary each year. Mr. Gates, a renowned philanthropist, has directed the board of directors to pay him nothing for the year and instead use the $1,000,000 to which he is otherwise entitled to create a scholarship fund. The fund, which he would help oversee, would be used to create scholarships for worthy high school students otherwise unable to afford college.

What are the tax ramifications to Mr. Gates and to the company? Please cite all resources in your research. One keyword term to start your research is "assignment of income"