Resources - Canada Revenue Agency (CRA) Types of Charities

Type Description
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.