"She should have been issued a w2 g as she meets the requirements. but was not"
Well, if that meets the reporting threshold, of course. And there would have been withholding or a tax payment made, as well, by one of the parties.
"seems to me the and in turn should be deleted"
Seems to me the "and in turn donating back" should be deleted.
You cannot donate something that is not yours. Declining to accept it, means it isn't yours.
I would treat this all as "never happened."
"Level Up" is a gaming function, not a real life function.