Setting up iPad mini for school giveaway, suggestions about apple ID and apps

Howdy all,
I've been asked by a client to setup an iPad mini for a school giveaway including loading it up with apps. They want to provide not only free but paid apps. How do I set this thing up with an ID that the winner can use? I was thinking about creating an email account with a free webmail provider then creating an Apple ID with that email. The person donating the mini was going to give me a pre paid visa card to load it up with apps. I see several problems here. If the winner already has an apple ID they will not be able to merge the purchases and put the mini on thier existing account so they can utilize thier already setup itunes and purchases made on that account. Also if I create an ID and want to add a payment type to the Itunes store it will require billing info which I will not have since I don't know who the winner is.The only other options I can think of is to:
1.Wait till the winner is chosen, contact them to see how they want it set up then take or it.
2.Give them the mini and prepaid card and wish them luck.
The person donating it really wants it set up, am I missing another options through itunes gift cards or other methods? Any suggestions would be greatly apprecieated.
Thanks,
~G

You should never setup an iPad you are giving a way. That is just looking for trouble for the recipient.
If the person donating the iPad wants to also donate Apps for it, you can wait until the Winner is chosen, and then have the donator Gift The Apps to the winner's Apple ID if they have one.  Or create one for them on the spot and Gift the Apps that way.
Setting Up an iPad is part of the fun of getting one, why would you want to deprive the recipient of that?
Alternatively if you really want to you can choose to just give the sealed iPad to winner, with an itunes Card they can then redeem when they set it up.
Past that, there's no reason you should be opening the device, as that can make it harder to get a warranty coverage should anything happen. Since its already been opened, there's no way for the winner to be sure that any damage wasn't caused by you, and no way for Apple to confirm that and you can potentially get in more trouble than you need to.
Personally, a Device such as this should be kept sealed, and handed over ot the winner as if it were picked up at the store. 
You probably mean well, but its just more trouble than it ultimately is worth.

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