Does this online business sounds legal?

Hello. I have been doing a MLM program as a customer recently.
I got an idea for starting a new MLM.
I am thinking about starting a program where people register for $6.00 a month as a monthing donation. Subscribers can only have five people in their first generation downline but they get one dollor from each downline for five generations. The remaining of the $1 is going to their money transfer fees. We would look for low income people or needy organizations to also register, but we would cover their cost so they could participate for free. We would put them in the first generation for every five generations so that the money from the downlines are sure to go to them. We will automatically take all spots in the generation directly below those who we choose for these free spots as to pay their expenses. We understand that online donations are classified as income (taxable), but is it possible for our customers to do our MLM and pay their fees as donations? I definitly want to call our business a donation, but since online donations are taxable, is it possible?

PS. I am thinking that once people register, people can donate( place spots ) as many times as they want. They will get access to our SNS website and email letter from us describing and introducing people who have been chosen for the free spots.

...all of those schemes are normally not legal...