If you say to someone: "Split your donations into amounts under the anonymous threshold so I don't have to say you donated money". Then you confirm that you got the check for the anonymous donations that is dishonest. 

The police even said he broke the law but that the statute of limitations and low seriousness of the offense meant they were not taking it to court. 

Sure he may be technically and legally correct but that hasn't saved others, and it shouldn't have saved him. Nick Smith didn't do anything 'illegal'.