Given the fact that registered charities are not-for-profit entities and thus do not pay tax on their income, in 1976, the Department of Finance drafted a set of laws to ensure that the charity's income was spent on charitable activities. These laws governing how much of a charity's income must be spent on charitable activities are called the Disbursement Quota - Charitable Organization, Disbursement Quota - Private Foundation, or Disbursement Quota - Public Foundation.

After March 4, 2010, a registered charity is no longer required to disburse 80% of the value of tax receipted gifts in the previous year. For example, prior to March 4, 2010, the DQ of a public foundation with property not used for charitable activities or administration of $1 million AND tax receipted gifts of $1 million in the previous year, the DQ would have been $835,000. After March 4, 2010, the DQ would be $35,000 (3.5% of $1 million).