Barnabas Foundation, as a public charity, issues Gift Annuities for the support of its member organizations. While some of our members may issue their own Gift Annuities, many are either too small or do not have the administrative ability to issue Gift Annuities. The advantage of using Barnabas is that the distribution of your Gift Annuity can be designated to support more than one charity.

What Is A Gift Annuity?.
A Gift Annuity is a contract between an individual and a qualified
charity which exchanges a gift to charity for an annuity
(guaranteed lifelong income) to the individual.

How Much Will My Guaranteed Income Be?
It depends entirely on your age. The older you are when you begin
a Gift Annuity, the higher the return will be. For example, a person
who is 70 receives a rate of 6.5%. The rate for an 80 year old is
8.0%. Barnabas Foundation follows therecommended rates set by
the American Council on Gift Annuities. (For a personalized
presentation with your own information (Click here.)

Will This Rate Of Return Ever Change?
No. Once you take out a Gift Annuity, your payment amount is guaranteed for life, regardless of what happens to the economy or stock market.

Do Gift Annuities Provide Any Tax Advantages?
Yes. There are a several of them.

  • Immediate income tax deduction at the time you create the Gift Annuity.


  • A portion of the annual payment you receive is tax exempt resulting in a higher effective rate of return.


  • Money in a Gift Annuity generally is not included in your estate for estate and inheritance tax purposes.

How Secure is a Gift Annuity?
It is as secure as the organization that issues the Gift Annuity.
The amount you contribute is normally placed in a Gift Annuity
reserve fund. Additionally, all of the assets of the charity stand
behind the contract. If you use Barnabas Foundation, the entire
amount you contribute is held in our Gift Annuity reserve fund in
order to make your Annuity Payments.

Will A Gift Annuity Work For A Married Couple?
Yes, in fact many Gift Annuities are "two-life" contracts, designed to make payments for the lives of both a husband and wife. The Annuity rate is somewhat lower, however, than the rate for a
single person.

Can A Gift Annuity Be Bought With Stock Instead Of Cash?
Yes, and it may be especially advantageous if the stock has
appreciated in value. The capital gain tax which you would have
owed for the year the stock was sold is spread out over your life
expectancy.

How Does A Gift Annuity Benefit My Christian Charity?
At Barnabas Foundation, your gift along with all gift annuity funds
are placed in a reserve fund to make annuity payments as long
as you are alive. When you establish the Gift Annuity you can
recommend which charities you would like to see supported with
the funds available once the Gift Annuity matures. Although the
funds are legally owned by Barnabas Foundation, we will honor
your wishes as long as they do not violate our distribution
policies.

Can I Defer My Annuity Payments?
Yes, and it will improve your annual payment. The longer the
deferral, the higher the annual annuity rate. For example, a Gift
Annuity contracted for at age 65 with annuity payments deferred
until age 70 yields a 8.3% rate of return beginning with the first
payment; if deferred until age 74 the annuity rate is 10.7% and it's
guaranteed for your lifetime. You are also entitled to an income
tax deduction immediately upon establishing the Gift Annuity.

How Will A Gift Annuity Work For Me?
Use our presentation calculator to determine exactly what the
results of a Gift Annuity would be to you. We can then also
assist you in working out the details with your favorite Christian
organization.