Meeting the disbursement quota

The disbursement quota is the minimum amount that your registered charity is required to spend each year on either:

• its own charitable activities
• its qualifying disbursements through gifts to qualified donees or grants to non-qualified donees

The disbursement quota calculation is based on the value of your property not used for charitable activities or administration.

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.

☐ When completing Form T3010, enter the proper amounts on

• line 5000 (expenditures on charitable programs)
• line 5045 (qualifying disbursements by way of grants to non-qualified donees)
• line 5050 (qualifying disbursements by way of gifts to qualified donees)

Has your charity met its disbursement quota?

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

☐ amounts spent on charitable activities (line 5000)

Plus

Qualifying disbursements through:

☐ gifts to qualified donees (line 5050)

☐ grants to non-qualified donees (line 5045)

Minus

☐ any designated gifts

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

Related topics

• Charitable activities
• What is a gift?
• Anti-avoidance rules and designated gifts
• Guidance CG-032, Registered charities making grants to non-qualified donees

This checklist is for the charity's use only. Do not mail to the CRA or file with the return.