For individuals and corporations making substantial charitable donations, we offer Enhanced Philanthropy by combining the tax benefits of flow-through shares and the subsequent donation of the proceeds of sale, we can significantly reduce the after-tax cost of charitable donations.
Before committing to a transaction, we arrange for a liquidity provider – typically, an institutional investor – to purchase the shares from the client or from the client’s intended charity at a predetermined price. This way the charity receives the intended donation amount in cash, and future changes to the market price of the shares has no impact on the donation amount.
The Enhanced Philanthropy strategy is strictly available to Canadian accredited investors only. To learn more about our Enhanced Philanthropy strategy and to discuss how it can work based on your own personal circumstances (including province of residence, income and tax characteristics), please contact us.
Optimal Hybrid Approach – Combining Transactions to Further Reduce Cost of Giving
We view the Charity Initiative and Share Initiative as distinct strategies. However, many clients combine the two to further lower the after-tax cost of a donation.
The Hybrid approach combines the two strategies. By offsetting the cost of the donation with the cash proceeds from the Share Initiative, a participant can significantly reduce the after-tax cost of the donation well below the levels of a stand-alone Enhanced Philanthropy transaction..