Disbursement quota calculation - prior to Budget 2010

Notice to the reader

As a result of Budget 2010, the information below applies only for fiscal periods ending before March 4, 2010.

Each year, a registered charity is required to spend a minimum calculated amount for its disbursement quota on its own charitable programs or on gifts to qualified donees. The disbursement quota is the sum of the five calculations described below:

  1. 80% of the amounts for which official tax receipts were issued in the previous fiscal period [line 4500];
     
  2. 80% of enduring property spent in the current fiscal period [line 5710 in Schedule 6 only] (This does not include enduring property received as a specified gift or a bequest or inheritance received by the charity prior to 1994);
     
  3. 100% of enduring property transferred to qualified donees in the current fiscal period [line 5060 in Schedule 6 only] (This does not include enduring property received by the charity as a specified gift);

    The total of 2 and 3 may be reduced by the amount, if any, that the charity is allowed to claim as a capital gains reduction.
     
  4. For charitable organizations and public foundations:

    80% of the amounts received from other registered charities in the previous fiscal period [line 4510];

    For private foundations:

    100% of the amounts received from other registered charities in the previous fiscal period [line 4510];
     
  5. 3.5% of the result of the following calculation:
    (this does not apply if the charity completed Section D of the return or if the amount is $25,000 or less);

    The average value of assets owned over the previous 24 months that were not used directly in charitable activities or administration [line 5900 in Schedule 6 only], less:
    • 100% of the amount for which official donation receipts were issued in the previous fiscal period [line 4500];
    • 100% of enduring property spent in the current fiscal period [line 5710 in Schedule 6 only];
    • 100% of enduring property transferred to qualified donees in the current fiscal period [line 5060 in Schedule 6 only]; and
    • 100% of the amount received from other registered charities in the previous fiscal period [line 4510].
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