Covered Flow-Through Shares in the Post-AMT Era: Where Do They Fit in a Donor's Philanthropic Toolkit?

For many years, gifts of publicly traded securities have been one of Canada's most effective and widely used charitable giving strategies. As charitable gifting has evolved and recent tax changes have altered the planning landscape, advisors, charities, and gift planners are taking a fresh look at how various giving strategies work together to help donors achieve their philanthropic objectives.

One strategy generating increased discussion is covered flow-through shares. While often associated with tax planning, covered flow-through share donations can also provide an opportunity for certain donors to significantly increase their charitable impact. Importantly, they are not a replacement for gifts of publicly traded securities or other established giving strategies, but rather another tool that may be appropriate in specific circumstances.


This session will provide a practical, non-technical overview of covered flow-through share donation strategies, including how they work, how donors access them, and the types of situations where they may warrant consideration. Particular attention will be given to comparing covered flow-through shares with more familiar charitable giving strategies, including cash donations and gifts of publicly traded securities, and exploring where each approach may be most effective.


Rather than focusing on technical tax calculations, the discussion will emphasize donor suitability, practical planning considerations, and opportunity recognition. Participants will gain a framework for understanding where covered flow-through shares fit within Canada's charitable giving landscape, how evolving tax rules have influenced charitable planning discussions, and how to identify opportunities for further exploration with donors and their advisors.


Learning Objectives

By the end of this session, participants will be able to:


· Understand the fundamentals of covered flow-through share donation strategies and how donors access them.

· Explain where covered flow-through shares fit within Canada's broader charitable giving landscape.

· Compare covered flow-through shares to more traditional giving strategies, including cash donations and gifts of publicly traded securities.

· Recognize how recent changes to the tax environment have influenced charitable planning discussions and donor decision-making.

· Identify donor situations where covered flow-through shares may warrant consideration and know when to engage specialized advisors.