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OTHER ASPECTS OF DEDUCTIBLE GIVING(b) Negligible ConditionsAs noted, a condition that is so remote as to be negligible is ignored for gift deductibilitypurposes. This phrase has been defined as “a chance which persons generallywould disregard as so highly improbable that it might be ignored withreasonable safety in undertaking a serious business transaction.” 135 It has alsobeen defined as “a chance which every dictate of reason would justify an intelligentperson in disregarding as so highly improbable and remote as to be lackingin reason and substance.” 136In one case, a court found conditions that were not so remote as to be negligible.One condition was found to have a “good chance” of occurring. 137 Anothercondition was characterized as “certainly foreseeable” and “quite likely.” 138 Stillanother condition was labeled as having a “high probability,” “probable,” and“quite possible.” 139 Thus, a charitable gift was not deductible at the time originallymade. In another case, a charitable deduction was not allowable because there wasa “realistic possibility” that the condition involved would occur. 140 The IRS examinedthe terms and conditions of a trust established to advance charitable ends,and concluded that the possibility that trust assets would be used for noncharitablepurposes was not so remote as to be considered negligible. Thus, it disallowedthe claimed charitable contribution deductions. 141Further, if an interest has passed to, or is vested in, a charitable organizationon the date of a gift, and if the interest would be defeated by the performance ofsome act or the happening of some event, the possibility of occurrence of whichappeared on that date to be so remote as to be negligible, the charitable contributiondeduction would be available. 142If it is determined that a condition is a negligible one, the amount of the giftfor deduction purposes may still have to be discounted by the present value ofthe condition. 143(c) Material Conditions—DeductibilityThere is one type of material condition that will not defeat a charitable deductionand, indeed, must be satisfied if the deduction is to be allowed. This is acondition that the gift be used for one or more program purposes; as noted, thisis frequently known as a restricted gift. The following are some examples ofrestricted gifts:• A gift to a charitable organization restricted to use for scholarships135 United States v. Dean, 224 F.2d 26, 29 (1st Cir. 1955).136 Briggs v. Commissioner, 72 T.C. 646, 657 (1979), aff’d without published opinion, 665 F.2d 1051 (9th Cir.1981), citing Woodworth Estate v. Commissioner, 47 T.C. 193 (1966), and United States v. Provident TrustCo., 291 U.S. 272 (1934).137 Briggs v. Commissioner, 72 T.C. at 657.138 Id. at 657.139 Id. at 658.140 885 Inv. Co. v. Commissioner, 95 T.C. 156, 162 (1990).141 Priv. Ltr. Rul. 200142011.142 See, e.g., Priv. Ltr. Rul. 9303007.143 See, e.g., Tech. Adv. Mem. 9443004 (concerning discounting by present value of the possibility of a reversion). 374