Bank Stock for a Charitable Gift Annuity

Susie Harms worked at the bank for many years and purchased the bank's stock as she was able. After retirement, she found herself with nicely appreciated bank stock that would have required capital gains tax be paid on any sale of the stock.

Susie contacted Mennonite Brethren Foundation and found out that she could exchange some of those shares for a Charitable Gift Annuity that would enable her to partially avoid paying capital gains and spread out the remaining capital gains tax over many years. She transferred the shares to Mennonite Brethren Foundation and allowed them to sell the bank stock shares without having to pay the capital gains tax. She was also able to receive a very nice charitable deduction.

She now enjoys the extra income from the Gift Annuity, much of it being tax free income, and has the satisfaction of knowing that upon her death her favorite charitable causes will benefit from the remainder value. Susie says, "I am delighted that I was able to receive an 8% payout with a majority of it being tax free income, and knowing that I will one day be helping kids to enjoy going to camp that might not have been able to afford it." She was so pleased with her original Gift Annuity that she decided to do another one a few years later with more bank shares.

*Please note: Since your gift annuity benefits may be different, you may want to click here to view a color example of your benefits.