Flow-through shares are a source of financing for the Canadian resource industry, particularly for companies engaged in oil and gas exploration.  Investors in flow-through shares not only benefit from officially-sanctioned tax savings, but also from potential capital appreciation. 

With publicly traded flow-through shares, you can maximize your charitable giving while reducing the net cost of your gift by combining:

• A tax deduction for the amount invested;
• A tax credit based on the market value of your donation; 
• The elimination of the capital gains tax when you donate your shares directly to The Banff Centre.

Illustration of tax savings

Flow-through shares have definite tax benefits.  However, returns are highly impacted by the performance of the volatile resource sector.  Investors must also be aware that they should donate the flow-through shares only after realizing the benefit of the expense deductions.  The above illustration does not constitute tax advice.  Please consult your tax advisor to determine if investing in flow-through shares, and donating them to a charitable organization, is the right decision for you.

How Flow-Through Shares Work

The proceeds of the flow-through shares must be spent on resource exploration, the expenses from which flow through to the investor and can be deducted against personal income. The net cost of the shares is significantly lower than the purchase price, and the shares are held as an ongoing investment, which may generate a capital gain for the investor.  As of 2007, the Federal Government still supports this tax-advantaged investment through the Income Tax Act as a means of encouraging sustainability and growth in the resource sector.  

Our development professionals would be pleased to provide you with step-by-step information about donating securities and to assist you with your donation.