As we enter the home stretch for 2014, the WCPD Foundation is nearing a substantial landmark: $100 million in total donations, assisted by flow-through shares.
While clients of Wealth, Creation, Preservation & Donation Inc. (WCPD) have given generously this year, it has also been healthy for their investment portfolios.
“Flow-through shares are an exceptional vehicle for philanthropists to make donations,” said Peter Nicholson, the President of WCPD Inc. “If you were to donate the flow-through shares to your favorite charity or foundation, your total cost to donate could be as low as 6 cents to 19 cents to donate a dollar, depending on your home province, compared to the regular cost of 54 cents (national average).”
If the client chooses to sell the flow-through as an investment, with no donation, the after-tax rate of return is regularly over 20% from tax savings and cash received from the proceeds of sale. Additionally, if you have available capital losses to apply against the capital gains, the investment option is even more profitable as the guaranteed rate of return is approximately tripled due to the related tax savings.
By combining an investment and a donation, Nicholson said, you can substantially reduce your cost to donate. Your cost to donate a dollar could be reduced to approximately 6 cents to 19 cents.
“This innovative philanthropic and investment model continues to serve our clients well,” he added. “Time has flown and I’m so pleased it has translated into such a hefty sum for charities.”
Irene Brown, WCPD’s Manager for Tax Reduction, said the charitable causes have been incredibly diverse during that span.
An earthquake in Haiti, sparking a humanitarian need, or a high-profile suicide in the local community, leading to increased attention for mental health, are examples of how varied and timely it can be.The fall and winter seasons tend to be busy, she adds, because clients receive the tax benefits for the year as long as the transaction is completed by December 31.
“You can buy a pure investment and still receive tax savings,” Brown said. “Or you can add a strong donation component.”
And there is also no time limit, she noted. Once the transaction is complete, clients can take as long as they wish to actually disperse the charitable funds, even after receiving the tax receipt.
Clients receive no interest on those funds, and WCPD does not charge donors a dime for the postage, time and paperwork to bring it all to fruition.
“If you have a pledge or commitment you want fulfill, we can effectively help you through the WCPD Foundation and by using flow-through shares,” she said.
You can learn much more about the WCPD Foundation, our Philanthropic Advisory Council and flow-through shares, by visiting our website at http://www.wcpd.com/wcpd-foundation