Statement from the President & CEO: Evidence, Stewardship, and the Path Forward on the Disbursement Quota

Jean-Marc Mangin

PFC News

3 mins read

April 9, 2026

Foundations play a vital role in Canada’s charitable ecosystem, stewarding resources in ways that respond to both immediate community needs and long-term public benefit. As regulatory expectations evolve, access to reliable data and careful interpretation are essential. That is why Philanthropic Foundations Canada welcomes Imagine Canada’s early analysis of the updated disbursement quota and is releasing our accompanying policy advisory to support thoughtful, evidence-informed discussion.

Imagine Canada’s preliminary findings offer an important early look at how foundations have begun responding to the increase in the disbursement quota to 5 percent for assets over $1 million. Their analysis suggests that many foundations have increased charitable and granting activity, resulting in an estimated $711 million more flowing into communities across Canada in the first year of the new rules. Our own preliminary data indicates that nearly 80% of PFC members granted above 4.25% in 2023 and 63% already exceeded 5%.  

Taken together this data is a meaningful signal and reflects the sector’s long-standing commitment to meeting regulatory requirements and delivering real and sustained charitable impact. At the same time, early data must be read with care. As outlined in our policy advisory, the disbursement quota requirements and actual compliance are related but distinct. Annual requirements are calculated based on reported assets, while compliance can only be assessed over multiple years, once disbursements, and available carry-forwards, and rollbacks are fully accounted for.

The updated rules, alongside clearer CRA guidance, have already improved the quality and consistency of reporting on charitable property. This is an important step forward. Better data strengthens our collective ability to understand how policy changes are influencing foundation behaviour and helps ensure that interpretation aligns with how the rules are intended to operate. It also underscores the importance of multi-year data and careful analysis as we move toward the anticipated federal review of the disbursement quota in 2027.

At PFC, we are committed to supporting our members and contributing constructively to public policy discussions. As part of this work, we have launched PFC’s Philanthropic Impact Taskforce, mandated by our Board to prepare for the anticipated 2027 disbursement quota review and to examine broader policy issues affecting philanthropy’s capacity for impact.

Through this Taskforce, we will take a deep, rigorous look at the available data and meaningfully engage our network to understand the real-world impacts of the updated disbursement quota. Our findings will be shared in 2026 and 2027, and it will support the development of evidence-based, sector-informed recommendations. Our upcoming investment survey, to be launched later this year, will further strengthen this analysis and help inform PFC’s policy positions.  

As more complete information becomes available, PFC will continue to provide analysis, guidance, and leadership to help foster a policy environment that strengthens philanthropy’s ability to serve communities across Canada.

See our Policy Advisory: Early Insights on Disbursement Quota Data