Charity’s disbursement quota: Consult with First Nations – CBA National Magazine
22 Feb 2022
Raising the DQ could force First Nations settlement corporations to spend more of these monies than the long-term benefits of their populations demand.
A charity’s disbursement quota, or DQ, is the minimum amount of money it must spend each year on its charitable activities or gifts to qualified donees. This minimum is set to ensure funds collected or held by charities are used for charitable activities and not accumulated indefinitely. The DQ is calculated as a percentage of a charity’s property value that is not used for charitable activities or administration.
The Charities and Not-for-Profit Law Section of the Canadian Bar Association, in a letter to the Tax Policy Branch of Finance Canada, urges the government to consult with First Nations who may be affected by proposed changes to the disbursement quota.
