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§ 10.3 GIFTS FOR THE USE OF CHARITYof contributed funds.” 117 The Court observed that the IRS “would face virtuallyinsurmountable administrative difficulties in verifying that any particularexpenditure benefited a qualified donee,” were a looser interpretation of thephrase utilized. 118 The larger interpretation would, wrote the Court, “create anopportunity for tax evasion that others might be eager to exploit,” although theCourt was quick to note that “there is no suggestion whatsoever in this case thatthe transferred funds were used for an improper purpose.” 119Under the facts, the Supreme Court found that the funds were not transferred“in trust for” the church. The money was transferred to the children’s personalbank accounts on which they were the sole authorized signatories. Notrust or “similar legal arrangement” 120 was created. The children lacked anylegal obligation to use the money in accordance with guidelines of the church,nor did the church have any legal entitlement to the money or a cause of actionagainst missionaries who used their parents’ money for purposes not approvedby the church.A charitable contribution deduction is not allowed for a gift of services. 121However, unreimbursed expenses made incident to the rendition of services tocharitable organizations can be deductible. 122 At the outset, the IRS’s positionwas that expenses incurred for charitable purposes were gifts for the use of, andnot to, charitable organizations. This position was reviewed in litigation and thegovernment lost the cases. 123 The IRS thereafter abandoned this position andruled that unreimbursed expenses incurred by an individual in rendering gratuitousservices to a charitable organization are gifts to the charity. 124A contribution of an income interest in property, whether or not the contributedinterest is transferred in trust, for which a charitable deduction is allowed, 125must be construed as made for the use of, rather than to, a charitable organization.126 A contribution of a remainder interest in property, whether or not the contributedinterest is transferred in trust, for which a charitable deduction isallowed, 127 must generally be considered as made to the charitable organization.128 If, however, a remainder interest is transferred in trust and, pursuant tothe terms of the trust instrument, the interest contributed is, upon termination ofthe predecessor estate, to be held in trust for the benefit of the organization, thecontribution must be considered as made for the use of the organization. 129117 Id. at 484–85.118 Id. at 485.119 Id.120 Id.121 See § 9.14.122 See § 9.15.123 See, e.g., Rockefeller v. Commissioner, 676 F.2d 35, 40 (2d Cir. 1982).124 Rev. Rul. 84-61, 1984-1 C.B. 39.125 IRC § 170(f)(2)(B) or (3)(A).126 Reg. § 1.170A-8(a)(2).127 IRC § 170(f)(2)(A) or (3)(A).128 Id.129 Id. 371