You can assign any terms and conditions you want on a gift. That happens outside of business and academic environments anyway, but notionally it's not any different from any other transaction.
UChicago didn't have to accept it. They chose to accept it, with the associated terms and conditions. The way the article reads, it looks like there's blame to go around, but possibly more to UChicago than Pearsons.
At what point is it no longer a gift though? What if I write a contract with Boeing where I "gift" them $X million dollars and they "gift" me a brand new jumbo jet? Do you think the IRS would be interested in the specifics of that contract?
The IRS can evaluate restricted charitable contributions to ensure that they meet a charitable purpose. If you make a restricted gift to a 501(c)(3) organization, the receiving organization should evaluate the conditions to ensure that they don't undermine the tax-exempt purposes of the organization's work. I expect that the IRS could examine the deduction on both ends to ensure that you didn't receive significant value in exchange for your gift, and that the organization is still engaged in appropriate activities.
Normally when you make a tax-deductible charitable gift, the organization you donated to will send you a letter documenting your gift and stating that no goods or services were provided in exchange for the gift:
The IRS might review that documentation as part of a tax audit. If it's inaccurate, it could conceivably affect the tax status of the organization that issued the acknowledgement letter.
The IRS can also revoke the 501(c)(3) designation of an organization if it concludes that the organization is inappropriately providing benefits to its donors. For example, it might require the organization to be reclassified under a different tax-exempt status where donations are not automatically treated as tax-deductible charitable contributions.
A subtle thing that might be bothering you is that people can make extremely specific charitable gifts to pursue extremely specific goals, and those can still be treated as tax-deductible. For example, you could donate to create a scholarship with very detailed eligibility requirements (often, donors to schools have created scholarships for students with very similar life circumstances to the donors' own). But, there is still a requirement that can't claim a deduction for the amount of a donation for which you personally receive goods or services with a market value as a quid pro quo, except to the extent the donation exceeds that market value.
I'm not a lawyer or accountant and this is not tax or legal advice.
The law is not a deterministic computer program that explicitly covers all cases in the code. The law applies common sense tests of reasonableness and your scenario would obviously not pass the test.
A gift to Boeing would be a taxable event. The IRS would consider it a transaction.
When I joined the Bronx Zoo as a member, I gave them $200 and received some benefits in consideration. Those benefits are valued at $140, so I am able to deduct $60 from my income.
The law around gifts is pretty clear and well defined. Just go read the relevant laws and tax rulings instead of pedantically arguing on an internet forum.
UChicago didn't have to accept it. They chose to accept it, with the associated terms and conditions. The way the article reads, it looks like there's blame to go around, but possibly more to UChicago than Pearsons.