Cracking Down on Church Contributions
Acton Institute Powerblog

Cracking Down on Church Contributions

A week or so ago I passed along a story about the United States Bankruptcy Court for the Northern District of New York’s interpretation of recent legislation to make it illegal for those filing for bankruptcy to tithe, except under very specific circumstances (here’s a good follow-up story).

Well, yesterday Religion Clause (which is, by the way, an excellent blog well worthy of bookmarking), noted that while the aforementioned case had received a great deal of attention, “an equally important case on the issue decided several weeks ago by the Second circuit seems to have gone largely unnoticed.”

In a case decided in late July,

the Second Circuit Court of Appeals held that treating some contributions to churches as fraudulent conveyances in bankruptcy does not violate the Free Exercise of Establishment clauses. It went on to interpret various provisions of the Religious Liberty and Charitable Donation Protection Act of 1998. It held that the statute’s shield for charitable donations of up to 15% of a debtor’s annual income applies to aggregate annual transfers, not to individual donations. The court held that in this case, the Church had waived its claim that it should be able to retain amounts donated to it under the 15% limit. Finally it held that on remand the church could raise the statutory defense that donations in excess of 15% “were consistent with the practices of the debtor in making charitable contributions.

Check out Religion Clause for the case details and relevant links.

Religion Clause, which is “devoted to legal and political developments in free exercise of religion and separation of church and state,” is run by Howard M. Friedman, Distinguished University Professor of Law Emeritus at the University of Toledo College of Law.

Jordan J. Ballor

Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is director of research at the Center for Religion, Culture & Democracy, an initiative of the First Liberty Institute. He has previously held research positions at the Acton Institute and Vrije Universiteit Amsterdam, and has authored multiple books, including a forthcoming introduction to the public theology of Abraham Kuyper. Working with Lexham Press, he served as a general editor for the 12 volume Abraham Kuyper Collected Works in Public Theology series, and his research can be found in publications including Journal of Markets & Morality, Journal of Religion, Scottish Journal of Theology, Reformation & Renaissance Review, Journal of the History of Economic Thought, Faith & Economics, and Calvin Theological Journal. He is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary and the Henry Institute for the Study of Christianity & Politics at Calvin University.