Strip bonds are created from bonds and debentures. The bond’s principal amount (or residue) is "stripped" of its semi-annual interest payments (or coupons). Once separated, the coupons and residue become individual investments. Strip bonds, like treasury bills, are sold at a discount of their maturity value. The difference between the discounted purchase price and the maturity value is the return.

If the donor wishes to give this way, and to avoid taxes, the principle amount can be given directly to Out On Screen to acquire the bond. We will then buy the bond under the terms the donor dictates. The donor will receive the tax benefit while Out On Screen can look forward to a large gift in the future, count the bond as an asset and borrow against it if necessary.

Contact:
Drew Dennis
drew@outonscreen.com
604.844.1615