Foundation Program

Does Your Church Have a Foundation?

If it doesn’t, should it have one?

If it does, is it managed effectively?  Is it regularly promoted to the congregation as a means to receive estate gifts?

Many Christians are making significant charitable gifts as part of their estate plan.  These gifts go to a variety of Christian organizations but often their church is not one of them.

Why?  Why do many Christians see their church as the primary kingdom cause to support during their lifetime, but not upon their death as part of their estate plan?

There are likely a number of reasons.  We believe some of the reasons are the following:

  1. Maybe their church has never shown an interest in funding ministries through estate gifts.
  2. Maybe their church has no structure to accommodate large gifts in a way that does not overwhelm the ministry or discourage the contributions of other members.
  3. Maybe their church has no systematic way to invest assets and distribute them over a longer period of time or to maintain and invest in a fund that would exist in perpetuity.
  4. Maybe their church has no advisors or professionals to help them plan their estates or convert unusual assets with significant taxable appreciation into tax-efficient charitable gifts.


One solution is for a local church to establish its own foundation.  Some churches set up a separate legal entity with its own tax identification number, a separate board, tax reporting and governance policies.  However, there are a number of hurdles and obstacles in this process including:

  • Complexity and cost of legal work to establish a separate foundation.
  • Lack of expertise in managing and investing the assets in the foundation.
  • Lack of availability of materials to promote the foundation and creative ways for members to make gifts to the foundation.
  • Complexity and expertise needed to establish investment policies and spending policies.
  • Turnover of people in leadership.

A better solution maybe for churches to establish a Legacy Foundation with the assistance of Barnabas Foundation.

What is a Legacy Foundation?

A Legacy Foundation is an account a church establishes at Barnabas Foundation to serve as its church’s foundation.  Assets in the Legacy Foundation are legally owned by Barnabas Foundation and are managed and invested exclusively for the benefit of the church.

How does a Legacy Foundation work?

A Legacy Foundation account is designed to receive gifts that will be needed in future years or gifts that will be invested in perpetuity with income being distributed to the church to support various ministries.  Many gifts to the Legacy Foundation will be planned gifts, resulting from bequests, Charitable Gift Annuities, Charitable Trusts, and retirement assets and life insurance policies.

Barnabas Foundation provides quarterly reporting of assets in the Legacy Foundation so leaders can monitor asset levels and performance.  More importantly, Barnabas Foundation provides quarterly marketing materials to promote the foundation and to encourage church members to do effective estate planning.

Each church’s Legacy Foundation includes up to five funds.

Members can specify any of the following in their Estate Plans:

  1. Missions
  2. Christian Education
  3. Building
  4. Ministries
  5. General Benevolence


How does a church establish a Legacy Foundation?

    Step One:
    The church council must pass a resolution to approve its establishment and have its president sign an operating agreement provided by Barnabas Foundation.  Barnabas Foundation will also provide the church with Foundation policies, procedures and other documents needed for the operation of the Foundation.

    Step Two:
    The council must appoint a Foundation Committee consisting of three or more people to help promote the Foundation, monitor the different funds in it and oversee the distribution of gifts.  Barnabas Foundation will provide all the administration including receipting of gifts, accounting, asset management, quarterly reports and distributions.

    Step Three:
    The Committee will publicize the purposes and advantages of the Foundation to the church body.  Barnabas Foundation will provide quarterly promotional materials that are ready to be copied and distributed to church members.  The materials will include the current value, information about the different funds, and ways church members can contribute to the Foundation.

Barnabas Foundation is a not-for-profit organization and provides services such as Estate Planning, Charitable Gift Annuities, Charitable Trusts, Donor-Advised Funds and Stewardship Education to all the agencies of the Christian Reformed Denomination; all CRC affiliated colleges in the US, nearly 100 other Christian charities and about 100 Christian Schools.  In addition, Barnabas Foundation provides Estate Planning, Charitable Gift Annuities and Gift Management services to thousands of Christian Reformed families.