Optimal charitable donation model to be protected in bankruptcy transactions contested

Abstract

Charitable donation as a legal term is not enshrined in Russian legislation, therefore the article provides a detailed analysis of the legal nature of a charitable donation and its difference from a simple donation. When challenging charitable donations, of particular importance is proving such circumstances as the reality of the transaction and the actual transfer of property, compliance of the purpose of the donation with the criteria of charity, the presence or absence of intent to harm creditors, the amount of damage caused by the transaction, as well as the time of the transaction relative to the onset of bankruptcy. Accordingly, of particular importance in this case is the clear qualification of charitable activity and the target nature of the donation, which entail the impossibility of applying a formal approach, which is confirmed, among other things, by examples of challenging such a donation in bankruptcy cases. A comprehensive mutual verification of the parties to the transaction and proper execution of documents, including during the reporting period on the use of the donation, will help minimize the risks of recognizing the transaction as invalid.

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