Charitable Gift Annuities

How Does a Charitable Gift Annuity work?

With a Charitable Gift Annuity, an individual makes a gift of cash or other property to the Barnabas Foundation, requesting that it be passed on to Highland Christian School or the Highland Christian School Foundation at your death. At the time of your gift, you receive a charitable deduction for a portion of the amount given. In exchange for your gift, you receive an annuity contract establishing your annual payments for life which will never decrease in size or frequency, regardless of changes in the economy. The payout rate depends on your age. In addition, a portion of your annual payment will be tax-free to you.

Charitable Gift Annuities are flexible. They can be written for a single person or for a husband and wife either individually or as a two-life Gift Annuity. The latter will lower the percentage payout; however, it assures the same amount of income as long as either spouse is alive. If you establish a Gift Annuity with Barnabas Foundation, your entire initial gift is set aside in a reserve account. It is invested to ensure adequate assets to pay your lifetime annuity. In addition, all the assets of Barnabas Foundation stand behind the contract. After your death (or you and your spouse with a two-life annuity), what is left of the initial gift is distributed to the Highland Christian School Foundation.

If you would like to discuss whether a Charitable Gift Annuity is right for you, call Jodi Lineburg at 219.838.0356 x165 today!

Charitable Gift Annuities Q&A