Donors make donations throughout the year to specified CRA qualified charities via the CFPEI’s Flow-through services. Charitable tax receipts are issued in the year in which they are given.
A Flow-through Fund allows a donor to see their charitable donation have an immediate impact in terms of helping a community cause or concern. A donor may not be ready to make a decision to establish an endowment fund, but may wish to help a variety of community causes sooner rather than later.
By working with the CFPEI to ‘flow through’ their donations to organizations who are CRA eligible to receive donations, they can have an immediate impact, while receiving a tax receipt. In some instances, donors make their charitable gifts through a gift of securities. Again, they can receive a tax receipt for the value of the securities, and have the proceeds from the securities distributed among a number of charitable organizations while avoiding the capital gains tax on the securities. In short, a Flow-through Fund enables the donor to provide immediate support, while minimizing their tax exposure, and maximizing the impact of their giving in the community.