This structure is not an unusual in education, especially in institutions where the tuition is smaller component of the cost and you are expected to give much more than that.

A donation to the trust, or even an endowment is typical for the other component . If the institution is non profit depending on the part of the world you can claim tax benefits, or even in the tuition itself .

Accounting and tax is not always black and white . At times more riskier clients may choose more aggressive practices either expecting on not being audited or be able to defend it with expensive experts if they are.