Meeting the disbursement quota

As a result of Budget 2010, the information below applies only for fiscal periods ending on or after March 4, 2010. If the charity's fiscal period-end was before March 4, 2010, see Meeting the disbursement quota - prior to Budget 2010.

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


Determine the charity's spending requirement (disbursement quota) at the start of the fiscal period.

  • If completed, the charity can use the amount on line 5910 of Schedule 6 - Detailed Financial Information on the Registered Charity Information Return it 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 the charity met its disbursement quota?

The charity has met its disbursement quota if the total of the following 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; and

amount of the special reduction approved in writing by the 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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