DQ12.How does a registered charity obtain a disbursement quota reduction?

DQ12. How does a registered charity obtain a disbursement quota reduction?

To ask for a reduction complete Form T2094 – Registered Charities: Application to Reduce Disbursement Quota. www.cra-arc.gc.ca/E/pbg/tf/t2094/README.html

The Charities Directorate will only consider the application once a registered charity has exhausted all other available means to cover the shortfall, such as:

  • applying any available excesses from the previous five years to cover the shortfall; and/or
  • creating a disbursement quota excess in the next year and carrying it back to cover the shortfall.

Generally, the earliest that a charity can receive approval for a disbursement quota reduction is after the Canada Revenue Agency has issued a Registered Charity Information Return Summary for the fiscal period following the period in which the shortfall occurred.