In this InvestorIntel financial education series interview, host Peter Clausi talks to WCPD Inc.’s Founder and President Peter Nicholson on the art of the charitable flow through model. Starting with the history of the flow through, Peter Clausi explains that “flow through” was invented by the Canadian government to help stimulate investment in Canadian minerals and oil and gas. Peter Nicholson goes on to say that with “the government of course wants us to explore more and they want to shoulder some of that risk” and that’s where the WCPD win-win strategy begins.
WCPD, a leading exempt market dealer for the Canadian resource and mineral exploration sector that has facilitated more charitable flow-through deals than any firm in Canada, Mr. Nicholson guides investors through the unique opportunities this financial model presents to investors. With a change in tax laws in 2006, Peter understood that donations could be maximized and capital gains avoided on flow through shares “if you donate public shares to your favorite charity.” In addition to the 100% tax deduction for buying flow through shares, Peter explains, if the buyer then donates these shares to charity, the shares are then instantly sold to a pre-arranged buyer at a pre-arranged contractual price – the charity receives the cash proceeds and issues donation tax receipt to the donor, generating a second 100% tax deduction. WCPD was created to help investors with the process and identify and assist recipient charities navigate through the charitable flow through regime. “That was the impetus behind starting our own donor advised fund, which is The Foundation WCPD.”
Peter Clausi and Peter Nicholson also discuss the possibility of additional benefits from the new federal critical minerals tax credit, which still has not published details of how it will work. They will both be speakers at the Critical Minerals Summit being held in Toronto on Wednesday, November 9th at the National Club. Peter Nicholson will be on a panel titled “Critical Minerals and the Capital Markets” being hosted by Tracy Weslosky, the Critical Minerals Institute co-founder.
To access the full InvestorIntel interview, click here.