Finance released draft legislation for changes to the disbursement quota on August 9, 2022, including to increase the disbursement quota rate to 5% (from 3.5%) for charities that have fiscal periods beginning on or after January 1, 2023. This measure was originally announced in the 2022 federal budget. Note that another federal budget measure, which allows charities to make certain disbursements to non-qualified donees, was recently enacted.
Registered charities affected by the disbursement quota change should review the proposed legislation and prepare now for these disbursement quota changes, which are scheduled to come into effect in 2023. In particular, affected charities may need to review their policies and procedures to account for this change.
Download this edition of the TaxNewsFlash to learn more.
