Disbursement quota
The minimum amount that an organization must spend in a taxation year to meet its objectives.
Note
If the organization's taxation year begins before January 1, 2023, the disbursement quota is 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.
If the organization's taxation year begins after December 31, 2022, the disbursement quota is the result of the following calculation:
If the organization's taxation year begins after December 31, 2022, the disbursement quota is the result of the following calculation:
- 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.