That was the good news. The bad news was that the income from her husband's retirement pension was soon going to decrease.

Her financial advisor suggested that she sell the stock, which paid no dividends, and reinvest in an income-producing asset. But then came some more bad news. After selling the stock, she would have to pay 20 percent capital gains tax, thus diminishing the amount she would be able to reinvest. Approximately $20,000 would have to go to the IRS.

Finally, there was good news again. Clara contacted Braille Institute and asked about its Charitable Gift Annuity program. She discovered that if she transferred the appreciated stock directly to Braille Institute's Annuity Trust Fund, no capital gains tax would be due during that year, allowing her to invest the total value of the stock. Based on her age of 78, her annuity income would be more than $9,000 per year paid to her quarterly, plus she would receive a charitable tax deduction of at least $50,000.