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 (see the definition of activities and the note below). 
• 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 (see the definition of income).
• 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.