Charitable organization

A charity that may or may not be incorporated, that meets the following conditions:

• It is established and operated exclusively for charitable purposes.
• It devotes all its resources to charitable activities that it carries on itself or to making qualifying disbursements. 
• As a rule, it does not pay any portion of its income to its proprietors, members, shareholders, trustees or settlors, or otherwise make its income available to any of those persons for their benefit.
• More than 50% of its directors, officers, trustees or like officials deal at arm's length:
  • with each other;
  • with each of the other directors, officers, trustees or like officials of the organization;
  • with a person that contributed amounts representing more than 50% of the organization's capital, or with each of the members of a non-arm's length group of persons that contributed such amounts.
• If more than 50% of the capital was contributed by one person, the organization is not controlled, in any way whatsoever, by that person or by members of a non-arm's length group of persons one of whom does not deal at arm's length with that person.