# Flow-Through Mining Shares *** ### **Structured Mining Flow-Through Donations in Canada** *A Tax-Efficient Giving Strategy for High-Income Donors* #### **Overview** Structured mining flow-through share donations are a sophisticated charitable giving strategy that allows Canadian donors—especially those with high taxable income—to **significantly reduce their tax bill** while supporting charitable causes. This strategy leverages Canada’s **flow-through share regime**, originally designed to promote investment in resource exploration, alongside the **federal charitable donation tax credit system**. #### **How It Works** 1. **Flow-Through Share Purchase**\ A donor purchases **flow-through shares** (FTSs) from a Canadian mining or energy exploration company. These shares allow the investor to "flow through" exploration expenses to their personal tax return, generating a **100% tax deduction** of the purchase amount. 2. **Donation to Charity**\ The donor gifts those shares to a GiveWise Giving Fund through a structured donation facilitator. 3. **Charity Liquidates Shares**\ GiveWise **immediately sells** the shares to a pre-arranged liquidity provider (known as a "back-end buyer") to convert them into cash without taking on market risk. 4. **Donor Receives Tax Receipt**\ The donor receives a **charitable donation tax receipt from GiveWise immediately,** equal to the **fair market value (FMV)** of the shares at the time of donation, typically close to the original purchase price. 5. **Capital Gain Exemption**\ Normally, donating publicly traded securities triggers a capital gain. However, under Canadian tax law, there is **no capital gains tax** when publicly listed shares are donated to a charity—resulting in additional tax savings. *** #### **Example of Tax Benefits** For a donor in a 50% marginal tax bracket: * **$100,000** FTS purchase → **$100,000** tax deduction * FMV of donated shares: $100,000 → **$50,000** charitable tax credit * **Effective after-tax cost**: often **\~$3,000–$5,000** * **Resulting GiveWise Giving Fund balance to gift out to charities: $100,000** *** #### **Major Facilitators Who GiveWise Works With** These firms structure and facilitate flow-through share donation programs, including donor onboarding, tax documentation, and coordination with GiveWise and issuers: * **PearTree Canada**\ One of the largest facilitators, working with charities and donors nationwide. * **Oberon Capital Corp.**\ Offers structured charitable donation solutions via flow-through shares. * **WCPD Foundation / Wealth Creation Preservation & Donation Inc.**\ Pioneer in structured charitable flow-through giving. *** #### **Ideal for:** * High-net-worth individuals with large tax liabilities * Corporations with exploration-focused investments * Donors seeking to multiply the impact of their giving *** Contact for more information and to be introduced to a flow-through facilitator. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://guide.givewise.ca/for-donors-getting-started-with-givewise/making-a-contribution/contribution-payment-methods/flow-through-mining-shares.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.