Garnishment of Charity's Bank Account
Creditor obtained a judgment against a charitable organization which had registered with the IRS as a 501(c)(3) organization. The creditor garnished the charity's bank account. A representative of the charity asked me if the garnishment was legal because the charity's bank account contained gifts from donors who understood their donation would be used for charitable purposes.
Without researching the issue I responded that the garnishment was proper assuming it was conducted according to the statutory procedures for garnishment. Florida statutes include no exemption for charitable organizations and no exceptions from garnishment for funds donated with charitable intent to an organization.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
