Giuseppe has always been a religious man. He grew up as a member of the Church of Rock and has stayed very active
in the religious community. The Church is a qualified charitable entity in New Jersey that actively recruits young
members to join the board of directors. Giuseppe is a successful attorney and he makes frequent donations to the church
for all sorts of fundraising events.
In 2014, when Giovanni "accidentally" comingles his funds with a client's funds, he is disbarred from the practice of
law. He continues to make a little money lecturing on "bad legal practices," but he cannot keep up the lifestyle he has
come to know. He turns to the church for support and befriends Rosa, an elderly congregant who gives Giovanni hope
that his life will turn around. When Rosa passes away in February 2017, she leaves Giuseppe a $45,000 inheritance.
Grateful for her support and encouragement, and knowing that he would not have received this request without his
continued church activities, he immediately donates $40,000 to the church.
In August of 2017, Giuseppe can no longer afford his home and he has substantial credit card debt and medical bills. He
files for Chapter 7 bankruptcy and hopes he can work out a fresh start. While the bankruptcy is underway, his Chapter 7
Trustee files a motion for summary judgment seeking to avoid the $40,000 donation, saying that this money should go
to his creditors instead. Giuseppe is terribly upset and says that he has always donated to the church. He gives the
Trustee a chart outlining his income and donation in years past.
2013 2014 2015 2016 2017
Church Donations $56,000 $3,210 $2,018 $1,312 $44,650
Income $622,222 $80,250 $33,633 $26,240 $48,720
Donations as a
percent of income
9% 4% 6% 5% 92%Online Legal and Business Studies
Who is entitled to this $40,000.Will the church be allowed to keep the money.