COLUMNIST
WEALTH MANAGEMENT MALCOLM BURROWS
Increase the Disbursement Quota
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Malcolm Burrows 8
FOUNDATION Magazine
May/June 2021
GARY TANNYAN
BY MALCOLM BURROWS
he 2021 Federal Budget announced the Government’s intentions to launch a consultation with charities about “potentially increasing the disbursement quota…beginning in 2022.” This consultation has garnered a mixed reaction from the charitable sector, but there are numerous reasons why the time is right to review the current 3.5 percent disbursement quota (DQ) rate. In advance of the April 19th announcement there was active debate on foundation spending. At one end, there is the group “Increase the Grants” led by John Hallward who says foundations are being allowed to “hoard tax-supported dollars”. They advocate for a 10 percent DQ rate. At the other end, there are sector professional associations that support the 3.5 percent status quo. They point rightly out that many foundations already exceed the minimum rate and change should be data driven. Charities, the entities that would benefit from increased grants, have been noticeably quiet. foundationmag.ca
