Disbursement Quota for Canadian Charities
Following political pressure for Canadian charities to spend more of their capital, the federal government announced in their 2022 budget that the Disbursement Quota (“DQ”) for registered charities will be raised to 5%. This post describes the latest changes to the disbursement quota and how they may affect your private foundation. What is the Disbursement Quota (“DQ”)? The DQ is the minimum amount...