This feels like an important moment to share what we’re hearing, following the release of Imagine Canada’s first analysis of the disbursement quota under the updated guidelines.
At CFC, we are closely tracking how the updated DQ is playing out across community foundations, drawing on insights from our learning sessions, annual surveys, ongoing conversations, and external analysis. We appreciate Imagine Canada’s contribution and will consider it alongside our own year-over-year data to build a clearer picture over time.
What we’re seeing across the network
Early signals suggest that the impacts of DQ changes are not uniform. Experiences vary across community foundations depending on factors such as size, the balance of restricted and unrestricted funds, investment performance, and approaches to granting and impact investing.
This reinforces the importance of taking a nuanced, evidence-based approach to understanding outcomes—grounded in the diversity of the network.
Our role
A core part of CFC’s role is to stay closely connected to these perspectives and ensure they inform federal conversations. We are actively engaging with the Government of Canada, including Finance Canada, as it prepares for the planned five-year review of the DQ in 2027.
We see this review as an important opportunity to build a shared evidence base and support a forward-looking approach that reflects the realities of different types and sizes of charities, including community foundations.
Looking ahead
A structured review process will help deepen understanding of how current DQ levels are working in practice and explore key considerations such as market conditions, the tiered system, impact investing, and the sustainability of smaller foundations.
In the coming months, we will continue to convene conversations across the network, including a second annual virtual roundtable for our members with Finance Canada and the CRA Charities Directorate in June 2026. These discussions will help bring forward grounded, community-informed perspectives.
What’s evolving in practice
We are also seeing early shifts in practice. Many community foundations are exploring or updating their charitable purposes to enable more flexible granting approaches, including to non-qualified donees. This reflects a broader evolution in how foundations are responding to community needs.
More broadly, this work sits alongside the evolving role of community foundations as community leaders. Beyond grantmaking, foundations are convening partners, advancing impact investing, and supporting local solutions in ways that reflect the complexity of community needs. Their unique position allows them to connect knowledge, resources, and relationships to drive meaningful, place-based impact.
Staying connected
We will continue to listen, learn, and share what we’re seeing as this evolves. Our goal is to support a thoughtful, evidence-informed conversation—grounded in the realities of community foundations and focused on strengthening outcomes for communities.
Warmly,
Andrew Chunilall, CEO, and Andrea Dicks, President, Community Foundations of Canada
For more information, please contact:
Geneviève Vallerand, Vice President
gvallerand@communityfoundations.ca
