A charitable foundation that meets the following requirements:
- No more than 50% of the 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; or
- 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 foundation 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.
In this definition, a reference to a “person” or a “group of persons” does not include the Government of Canada, the Québec government or another provincial government, a municipality, a charity registered as a charitable organization or a public foundation, or a club, society or association that is exempt from income tax.