Asking for a disbursement quota reduction

A disbursement quota reduction is available to registered charities whose expenditures on charitable activities or on gifts to qualified donees were less than required in the year due to circumstances beyond their control, thus causing the charity to incur a spending shortfall (not meet their disbursement quota).

A reduction will only be considered once the charity has exhausted all other available means to make up the shortfall such as:

• applying any available excesses from the previous five years to cover the shortfall; and/or
• creating a disbursement quota excess in the next year and carrying it back to cover the shortfall.

Generally, the earliest that a charity can receive approval for a disbursement quota reduction is after we have issued a Registered Charity Information Return Summary for the fiscal period following the period in which the shortfall occurred.

To ask for a reduction:

Complete Form T2094 - Registered Charities: Application to Reduce Disbursement Quota

Mail or fax the completed form to:

Amending the return

If the charity receives approval for a disbursement quota reduction, it must amend the T3010 return for the fiscal period in which the shortfall occurred to include the approved amount on line 5750.

To amend the return, complete Form T1240, Registered Charity Adjustment Request.

Revised summary

After the adjustment has been processed, the charity will receive a revised Registered Charity Information Return Summary for that fiscal period.

References

• CSP-D14, Disbursement quota (excess, shortfall)
• CSP-D03, Disbursement quota (reduction)