DQ10. What happens if a registered charity spends less than the disbursement quota in its fiscal year?
The Charities Directorate advises that if a registered charity spends less than the disbursement quota for a year, this is known as a disbursement shortfall. A registered charity can draw on disbursement excesses from the five previous fiscal periods to help it meet a shortfall. If there are no excesses available to draw on, the charity can try to spend enough the following year to create an excess that it can carry back to cover the shortfall. It is important to note that continuous shortfalls can lead to the revocation of a charity’s registration.