Life Stories

God’s Property and Purposes

May 10, 2019
By Barnabas Foundation

Turning Problems Into Opportunity Through a Life Income Gift

“We were led by the Lord to do this.” That’s the only way John and Monika can explain why they set up a life income gift through Barnabas Foundation.

Nearly 40 years ago, John and Monika purchased three acres of property in McMinnville, Oregon. They intended to build a house there, but never did. “We remained in our own home for a good 32 years,” explains John. “Then later, we built a house on a local golf course.”

For decades the property remained undeveloped; however, they received multiple offers from prospective buyers. “Because this is a developing area in the wine country of Oregon, we got all kinds of offers,” explains John.

Since they were never going to build on the land, John and Monika finally decided to sell. “But all we could think of was: ‘Do you want Uncle Sam to take care of your money, or do you want to be involved?’” recalls John.

“When you look at the capital gains on selling this property,” John explains, “we were looking at more than 30 percent federal and state tax combined. What a waste!”

So, they called Barnabas Foundation for help. Together, they identified a solution that not only achieved John and Monika’s income and charitable goals, but also helped them realize significant tax benefits.

John and Monika gifted the property into a charitable remainder trust held by Barnabas Foundation. This provides them with income for their lifetimes, after which the remainder of the trust’s funds will be donated to ministries they’ve designated. This arrangement also helped them avoid the capital gains taxes at the point of sale.

“Barnabas Foundation makes this easy,” John comments. “We don’t have to take care of the details. It’s planned wisely. We have great confidence in Barnabas Foundation.”

John and Monika view this life income gift as a significant blessing. “A great burden was lifted,” reflects John. “We didn’t have to worry about that property anymore. We’ve never regretted doing it. It was a godsend, obviously.”

But more than anything else, John and Monika marvel at how God provided this property to advance the Kingdom.

“We bought the property for our own purpose,” reflects John. “But it’s out of our domain now. That’s a comfortable feeling since it’s dedicated to organizations that honor the Lord. It’s beautiful!”