Disbursement quota calculation - prior to Budget 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].

References

• T1259, Capital Gains and Disbursement Quota Worksheet

Date modified:

2011-06-01