The Barakel Foundation, Inc.

Gift Annuities

The Gift Annuity  
 
A Gift Annuity supports you, and it supports us. It is a practical plan that supports your living needs by providing you with a regular return on your gift to the Barakel Foundation, Inc. (Barakel). For many people, a Gift Annuity also results in tax benefits. With your gift, you entrust us with furthering the mission we share between us.

Benefits a Gift Annuity Provides  
 
Frequently Asked Questions  
 
Simplifying the Decision-Making Process  
 
Sample of Rates  
 
Application for Gift Annuity  
 
This information is of a general nature only. For specific legal advice and assistance, you should contact your own attorney.

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Benefits a Gift Annuity provides:

  1. A gift to support our ministries.
  2. Fixed payments for life.
  3. A charitable contribution deduction.
  4. Potential income tax savings.

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Frequently Asked Questions

  1. How can a Gift Annuity benefit my tax situation?
     
  2. Should taxes be my chief concern?
     
  3. How much will my annuity be?
     
  4. What will my charitable deduction be?
     
  5. Will any of my annuity be nontaxable?
     
  6. Are Barakel Gift Annuities safe?
     
  7. Can my gift of cash (or securities) for a Gift Annuity be returned if circumstances require?
     
  8. Does my annual annuity change as I get older?
     
  9. Can I make a provision for others through a Gift Annuity?
     
  10. I don't need more income now. Can I delay receiving the annuity payments until later?
     

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  1. "How can a Gift Annuity benefit my tax situation?"

    You can reap tax benefits from a Gift Annuity in four basic areas:

    1. You can claim a charitable deduction for a portion of your gift on your income tax return in the year your gift is made.
    2. A portion of the annuity payments you receive each year is not reported as income throughout the remainder of your life expectancy.
    3. If you fund your Gift Annuity with assets like securities that have increased in value, only a portion of the capital gain is taxable. The taxable portion is allocated over your life expectancy starting when your annuity payments begin.
    4. A Gift Annuity on your life is generally not considered a part of your taxable estate. When another person also receives benefit from a Gift Annuity, a portion of the value is included in your estate. However, in modest-sized estates, estate taxes are seldom a factor.

    Furthermore, a Gift Annuity is not part of your probate estate, and therefore does not add to the expenses connected with settling your estate.

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  2. "Should taxes be my chief concern?"

    No. Your primary concern should be providing adequately for yourself and your loved ones, and making sure that your planning provides for the charitable causes you believe in. With any plan you need to stop and ask yourself a basic question, "What will provide me with peace of mind?" This question usually leads you back to those you love and what you value and believe in.

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  3. "How much will my annuity be?"

    To figure your annuity benefit, follow these four steps:

    1. First, decide on the amount of your proposed gift (minimum $1,000.00).
    2. Second, determine your nearest age. If it is less than six months before your next birthday, you are considered a year older than your actual age would indicate.
    3. Third, find the annual annuity rate in the column to the right of your nearest age on the Annuity Rate Table.
    4. Fourth, multiply your proposed gift amount by this rate (gift amount multiplied by rate = annuity to be received).

    Also available are some Deferred Annuity Rate Examples for annuities that begin payment more than one year after the date you fund your annuity.

    The annuity rate you receive depends upon your age at the time the payments begin. Usually, the longer the deferral period, the higher the rate will be. We will give you a quote if you will tell us your date of birth and the date you would like the payments to begin.

    Send Information to:

    The Barakel Foundation, Inc.
         1092 Meadow Drive
    Orange Park, Florida 3206    5

    email: info@barakel.com
    Information sent via the Internet may not be secure


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  4. "What will my charitable deduction be?"

    The Internal Revenue Service calculation factors change each month. If you contact us at the above address, we can give you a current charitable deduction quote.

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  5. "Will any of my annuity be nontaxable?"

    A portion of the annuity you receive will not be taxable over your remaining life expectancy as of the date the payments begin. The exact amount depends on your age and the date you wish payments to begin. We will give you a current quote if you contact us at the above address and give us your date of birth.

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  6. "Are Barakel Gift Annuities safe?"

    Yes. Barakel stands behind your annuity, and we have never missed an annuity payment. And for your protection, we have placed ourselves under the same reporting responsibilities commercial insurance companies do. We handle your annuity carefully and confidentially.

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  7. "Can my gift of cash (or securities) for a Gift Annuity be returned if circumstances require?"

    No. Once you enter into a Gift Annuity, it cannot be altered by you or Barakel, For this reason, care should be taken to make sure you have other savings, assets, or income to meet emergency needs.

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  8. "Does my annual annuity change as I get older?"

    Once your Gift Annuity is issued, your benefit will never change. Additional Gift Annuities purchased over the years may pay higher annual rates because you will be older.

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  9. "Can I make a provision for others through a Gift Annuity?"

    Any one or two people may be included in a Gift Annuity. However, a two-life annuity pays a lower rate.

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  10. "I don't need more income now. Can I delay receiving the annuity payments until later?"

    Many people have adequate income now, from employment or other sources, but are concerned that they will need more income at retirement or some other future time. Deferring the time when payments begin may be the answer. In doing so, you receive a large charitable deduction in the year of the gift. You then designate a future date when you wish to begin receiving the annuity benefit, which would be larger than if you began receiving it immediately.

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Simplifying the Decision-Making Process

What are some primary considerations in making a sound and satisfying decision?

One consideration is assessing whether the practical dimensions of a Gift Annuity fit your situation. Would it be meaningful to have a plan that provides a steady annuity to you or to a loved one? Where do you currently have the assets that you would use for a Gift Annuity?

A second consideration speaks to a much deeper need-the need to support something you believe in. Do the ministries of the Association connect with that need in you? Would you be blessed to know that your gift enables others to come to know Christ?

Finally, it may be helpful to step back and assess where you are in that decision-making process. Our situations don't put all of us in the same place. If you already know a Gift Annuity applies to you, your next step is simply to print out and complete the Gift Annuity application form.

But sometimes you want someone you trust to help you decide. You simply need to know whether a Gift Annuity applies to your situation. You undoubtedly will want to consult with God in prayer as well as your other advisors.

In whatever place you are, we want your next step to be the right one for you. Please contact us if we can serve you in any way.

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