Disbursement quota
The minimum amount that an organization must spend in a taxation year to meet its objectives.
Calculating the disbursement quota
The disbursement quota is calculated as follows:
- the lesser of the following amounts:
- 3.5% of the average value of property (other than property accumulated with our authorization) the organization owned at any time in the 24 months preceding the beginning of the taxation year concerned, but did not use for its activities or for administrative purposes,
- $1,000,000;
- plus
- 5% of the amount by which the average value of property (other than property accumulated with our authorization) the organization owned at any time in the 24 months preceding the beginning of the taxation year concerned, but did not use for its activities or for administrative purposes, exceeds $1,000,000.
For more information, see Disbursement quota.
End of note