How wealthy Canadians donate to charity — and also fund mining companies

By Gabe Oatley – The Narwhal

For nearly two decades, Canada’s mining exploration companies have had an unlikely ally in raising capital: Canadian charities.

The link results from a tax strategy known as charity flow-through. It provides an incentive for wealthy donors to donate shares to a charity, instead of cash.

The complex approach, promoted by several firms since the mid-aughts, involves wealthy Canadians purchasing shares of a mining exploration company only to gift some of them to a charity the same day.