| Charitable organization |
A charitable organization (e.g., a hospital) primarily carries on its own charitable activities. It can be a corporation, or it can be established by a constitution or a trust document. Less than 50% of its directors/trustees are related persons and at least 50% of the funds it receives are from donors who are not related persons. Can only operate businesses that are related to their mandate or that are run substantially by volunteers. |
| Public foundation |
A public foundation (e.g., a hospital foundation) gives more than 50% of its income annually to other qualified donees, usually other registered charities. It must be established either as a corporation or a trust. Less than 50% of its directors/trustees are related persons and at least 50% of the funds it receives are from donors who are not related persons. A public foundation may carry on some of its own charitable activities. Can only operate businesses that are related to their mandate or that are run substantially by volunteers. |
| Private foundation |
A private foundation may either carry on its own charitable activities, or it may give funds to other qualified donees, usually other registered charities. It must be established either as a corporation or a trust. 50% or more of its directors/trustees are related persons or otherwise do not deal at arm's length, or more than 50% of its funds are received from one person or from a group of persons who do not deal with each other at arm's length. Are not allowed to engage in any business activity. |
