I’m considering giving a gift (between a few hundred and a few thousand dollars) to a very good friend whose finances are dire and might get worse this year. Her younger child attends an Ivy and has received very good financial aid so far (standard for their income: the school pays for everything except a $3,000 to $4,000 student contribution. For the level of gift I’m considering, is there anything I should be concerned about as far as affecting the child’s financial aid? Thank you.
No. If it’s a gift to the parent…it’s a gift to,the parent…not the kid.
A good argument could be made that such a gift should be reported on Profile, which most (not all) Ivies use to allocate institutional aid. If your friend’s youngest child is at least a sophomore, however, that shouldn’t be a concern as far as reporting income is concerned. Note that if the gift is retained and still in your friend’s possession when the next round of financial aid forms (including FAFSA) are completed, the gift will be a reportable asset.
I think it would be spent almost immediately.
If it’s under $14,000 and will be spent immediately, I do not think it would have any impact on financial aid since it will not appear in a bank account amount, or as an asset at time of completing FAFSA. Your friend will also not need to report this gift on their taxes since it’s under $14,000.
A $14k limit has nothing to do with financial aid.
You have a fundamental misunderstanding of gift tax. Gift tax reporting requirements fall on the gift giver, not the recipient.
Just wanted to add that I think its wonderful that you are in a position to help a friend in need, and as the saying goes, that makes you a friend indeed.
Bless you.
PS - wanna be friends? 
She is the kind of friend for whom I wish I could do much more.