Meeting the disbursement quota

Important notice

On June 23, 2022, Budget Implementation Act, 2022, No. 1, received Royal Assent. This change in legislation includes new rules that allow charities to make grants to non-qualified donees. As a result, some of the information on this page could change.

On November 30, 2022, the Canada Revenue Agency (CRA) posted the draft guidance document CG-032, Registered charities making grants to non-qualified donees for feedback. This document explains how the CRA expects to administer the recent changes to the Income Tax Act.

The CRA is in the process of reviewing and updating all related guidance products and web pages to ensure they are consistent with the new rules.

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.


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

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)

Related topics

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

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