Canadian Family Offices’ Ashley Redmond recently had the opportunity to sit down with Elaine Kosmas, dealing representative & business development, PearTree Canada. Kosmas is leading PearTree’s expansion across Saskatchewan, focusing on relationship development with major donors and philanthropic organizations.
In an expansive conversation, Kosmas explains why ‘right now’ is the perfect time to expand in the province. “The federal government in 2022 announced the 30 per cent critical mineral tax exploration credit. Saskatchewan as a province further enhanced the economics by increasing the provincial critical mineral tax exploration credit from 10 per cent to 30 per cent. Together, these incentives have created one of the most attractive exploration environments in Canada. It means that we can build a presence in Saskatchewan, knowing that we have deal flow and the tax structures that help support donors, issuers and charities,” she explained.
*This transcript is provided for convenience and is based on the audio recording of the video. While efforts have been made to ensure accuracy, minor errors are possible.
Ashley Redmond: Hello and thank you for watching today. My name is Ashley Redmond and I’m a content producer at Canadian Family Offices. Today I’m joined by Elaine Kosmas from PearTree Canada.
Elaine is leading PearTree’s expansion across Saskatchewan, focusing on relationship development with major donors and philanthropic organizations. Prior to PearTree, Elaine was the Scotiabank and BMO Private Wealth and was involved in private wealth management, commercial banking, and philanthropic engagement.
Elaine, thank you for joining today.
Elaine Kosmas: Thanks for having me, Ashley.
Ashley: What motivated you to make the transition from a major bank over to PearTree?
Elaine: What motivated me to join PearTree Canada was to bring a proven and trusted strategy to Saskatchewan to amplify philanthropy at no market risk. PearTree holds advance tax relief from CRA and has helped major gift giving, as well as help charities cross the finish line on their capital campaigns and most often with the same donors.
Ashley: PearTree has recently expanded into Saskatchewan. Why was the timing right, right now? And what about the market is especially promising at PearTree?
Elaine: Our work depends on strong flow-through share deal flow and a consistent end buyer. We now have that in Saskatchewan as well. A number of key factors have converged in Saskatchewan. We’re seeing renewed momentum in uranium and critical mineral exploration as well.
The federal government in 2022 announced the 30 per cent critical mineral tax exploration credit. Saskatchewan as a province further enhanced the economics by increasing the provincial critical mineral tax exploration credit from 10 per cent to 30 per cent. Together, these incentives have created one of the most attractive exploration environments in Canada. It means that we can build a presence in Saskatchewan, knowing that we have deal flow and the tax structures that help support donors, issuers and charities.
Ashley: For those watching that are hearing about PearTree Canada for the very first time. Can you tell us what they do for investors and philanthropists specifically?
Elaine: Of course. PearTree sits at the intersection of wealth management, tax planning and philanthropy. We lower the after-tax cost of giving down from $0.50 on the dollar to $0.10, and in Saskatchewan, down to $0.03 on the dollar.
We do this through our flow-through share donation platform. It’s a structure that allows accredited investors to marry the investment tax credits associated with flow-through shares at no market risk, and the donation tax credits. What makes PearTree special is that our structure isn’t theoretical. It is approved by CRA with an advanced tax ruling. PearTree has completed over 75 transactions, with all donors receiving the expected tax treatment.
Ashley: You’ve emphasized collaboration with wealth advisors and accountants. Can you expand on that?
Elaine: That’s right. So accountants and wealth advisors see PearTree as an extension of the services they provide. Because PearTree holds an advanced CRA rule and they know the structure that we provide is compliant. We are able to model after tax outcomes that advisors and accountants can rely on.
Ashley: Thank you, Elaine. For more information on PearTree Canada, visit PearTreeCanada.com.
This story was created by Canadian Family Offices’ commercial content division on behalf of PearTree Canada, which is a member and content provider of this publication.