Jump directly to the content

The Religious Liberty and Charitable Donation Protection Act of 1998

A federal law protects the charitable giving of donors who declare bankruptcy

A federal law protects the charitable giving of donors who declare bankruptcy

Article summary. Last year Congress enacted the Religious Liberty and Charitable Donation Protection Act. The Act accomplishes two important results. First, it protects churches and other charities from demands by bankruptcy courts that they return contributions made by a bankrupt donor. Second, the Act allows most persons who file for bankruptcy to continue making contributions to their church or charity. In the past, many courts rejected both of these protections. This article provides church leaders with a practical understanding of how the new law will affect them.

In the past, churches were hurt by federal bankruptcy law in two ways. First, many courts ruled that bankruptcy trustees could recover contributions made to a church by a bankrupt donor within a year of filing a bankruptcy petition. Second, church ...

Log In For Full Access

Interested in becoming a member? Learn more.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

Related Topics:
Posted:
  • May 1, 1999

Related ResourcesView All

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Charitable Contributions Bulletin Inserts
Charitable Contributions Bulletin Inserts
Help your members give more by answering their charitable giving and tax law questions.
Increase Giving at Church
Increase Giving at Church
Develop practical and digital strategies to cultivate a culture of giving.
Best Practices for Receiving Charitable Contributions
Best Practices for Receiving Charitable Contributions
Practical help and clear understanding on issues surrounding charitable contributions.