Foundations struggling to meet higher disbursement quota: Philanthropic Foundations Canada

Author Gabe Oatley
Some volunteer-run foundations have faced capacity constraints in trying to meet the new, higher disbursement quota, said Jean-Marc Mangin, CEO of Philanthropic Foundations Canada.

Why It Matters

2023 was the first year some foundations were forced to increase their charitable spending. Imagine Canada estimated this change would result in an additional $200 million annually in charitable expenditures โ€” but only if foundations follow the rules.

A group of foundations are struggling to meet the higher rate of charitable spending the federal government introduced last year, according to the head of Canadaโ€™s private foundation association. In response to a sustained advocacy campaign, the federal government introduced the new rate in late 2022 to increase the amount of money flowing to the charitable sector.

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