Amid the COVID-19 crisis, flow-through share deal with Skeena Resources ‘truly exceptional’ and shows ‘commitment to Canadian charities’
During this time of economic uncertainty, the Foundation WCPD recently closed a $33.3 million flow-through share offering with Skeena Resources Limited, the largest deal in the firm’s history.
Since 2006, Foundation WCPD has performed more flow-through offerings than any firm in Canada. That adds up to over 4,500 cheques issued to more than 600 charities across the country. All told, The Foundation’s flow-through share structure has led to charitable donations north of $125 million for its clients.
But this latest offering is special, according to Peter Nicholson, President and Founder of the Foundation WCPD — and not just because of its size.
“This offering is historic in many respects,” Nicholson explained, who has been in the financial services industry for over 30 years.
“Raising $33 million would be a challenge in the best of times. But to do so amid this health crisis is truly exceptional. It is a testament to our clients and their commitment to Canadian charities. Now more than ever, major donors are stepping up as our communities navigate through this pandemic.”
While many sectors of the economy have been impacted by the realities of life under COVID-19, foundations and nonprofits are also fighting to keep the lights on and offer essential services. Traditional forms of fundraising, such as galas and golf tournaments, are now offline as society practices physical distancing.
Meanwhile, this reality comes at a time when charities, and the people they serve, need more support than before.
Walter Coles Jr., the President and Chief Executive Officer at Skeena Resources Limited, echoed Nicholson’s thoughts on the closing.
“This accomplishment, for both our firms, is made all the more remarkable given the current health and financial crisis with COVID-19,” Coles said.
“We continue to be impressed with WCPD’s efficiency and professionalism. It is no wonder why we have only used WCPD for all our charity flow raises since 2015.”
Flow-through shares, with an immediate liquidity provider, is a safe and trusted method for major donors to give back more to charities of their choice. The structure combines two long-standing tax policies — one intended to fuel Canada’s mining industry and economy, and another when you give your cash donation to charity (charitable tax receipt).
By combining these tax policies, both of which are older than the RRSP, you you reduce tax and give up to three times more to a charity that touches our heart — at no additional cost.
“Charity flow, with an immediate liquidity provider, is the most cost effective way to make a contribution, especially during these difficult times,” Nicholson said.