Bank contends donor's contributions could be "a fraudulent conveyance"

That is why it is so important to note on the annual giving receipt that the donor did not receive any goods and services from the organization, adn to be sure they were truly free will donations. We make sure that any money given for retreats or other fellowship activities are noted in a separate line, and indicate that they are not tax deductible amounts. I would have to pull my tax file and look at the statement, but I believe it says “NTD” Not Tax Deductible.

http://openjurist.org/141/f3d/854

Crystal Evangelical Free Church is a church near my home. Now named The New Hope Church

Excerpt:

Bruce and Nancy Young are active members of the Crystal Evangelical Free Church (the Church). In accordance with their religious beliefs, the Youngs tithed ten percent of their annual income to the Church. While the Church teaches that its members should contribute to support the Church, it does not require payment for attendance or membership, and would provide all services to the Youngs regardless of the amount of their tithes. Between February 1991 and February 1992, the Youngs tithed $13,450.00 to the Church.

The Youngs filed a joint Chapter 7 bankruptcy petition in February 1992. Because the Youngs had been insolvent during the previous year, bankruptcy trustee Julia Christians (the Trustee) sought to avoid the Youngs’ tithes to the Church as fraudulent transfers under 11 U.S.C. § 548(a)(2)(A). Both the bankruptcy court and the district court held that the tithes to the church were avoidable transactions, and allowed the Trustee to recover the tithes from the Church.

The United States Court of Appeals, Eighth Circuit overruled the bankruptcy court and the district court

Upon reconsideration, we conclude that, under the Bankruptcy Clause and the Necessary and Proper Clause of Article I of the Constitution, RFRA is constitutional as applied to federal law. Accordingly, we reinstate our previous decision, and again reverse the district court