Disbursement Quota

The disbursement quota is the minimum amount that your registered charity is required to spend each year on its charitable activities, or on gifts to qualified donees (for example, other registered charities). The disbursement quota calculation is based on the value of your property not used for charitable activities or administration.

CRA Checklist

☐ Determine your spending requirement (disbursement quota) at the start of the fiscal period.

• If completed, use the amount on line 5910 of Schedule 6 – Detailed Financial Information on the Registered Charity Information Return you will file for the fiscal period that just ended. See Disbursement quota calculation.

☐ If applicable, make note of any disbursement quota shortfalls from the previous year that need to be made up or any excesses that may be applied to meet the current year’s spending requirement. See Disbursement quota shortfalls and excesses.

☐ Separate charitable expenditures from other expenditures such as management and administration, political activity, and fundraising and keep track of these throughout the fiscal period as well as amounts gifted to qualified donees.

☐ Enter the proper amounts on line 5000 (expenditures on charitable programs) and on line 5050 (gifts to qualified donees) when completing the Form T3010 return.

Has your charity met its disbursement quota?

You have met your disbursement quota if the total of the following three expenditures equals or exceeds the calculated spending requirement:

☐ amounts spent on charitable programs (line 5000)

☐ gifts made to qualified donees (line 5050) minus any designated gifts

☐ amount of the special reduction approved in writing by the Canada Revenue Agency (CRA) for the fiscal period (line 5750)