What is a “Charitable Organization”

Income Tax Act S. 149.1

charitable organization, at any particular time, means an organization, whether or not incorporated,

• (a) constituted and operated exclusively for charitable purposes,
• (a.1) all the resources of which are devoted to charitable activities carried on by the organization itself,
• (b) no part of the income of which is payable to, or is otherwise available for, the personal benefit of any proprietor, member, shareholder, trustee or settlor thereof,
• (c) more than 50% of the directors, trustees, officers or like officials of which deal at arm’s length with each other and with
• (i) each of the other directors, trustees, officers and like officials of the organization,
• (ii) each person described by subparagraph (d)(i) or (ii), and
• (iii) each member of a group of persons (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)) who do not deal with each other at arm’s length, if the group would, if it were a person, be a person described by subparagraph (d)(i), and
• (d) that is not, at the particular time, and would not at the particular time be, if the organization were a corporation, controlled directly or indirectly in any manner whatever
• (i) by a person (other than Her Majesty in right of Canada or of a province, a municipality, another registered charity that is not a private foundation, and any club, society or association described in paragraph 149(1)(l)),
• (A) who immediately after the particular time, has contributed to the organization amounts that are, in total, greater than 50% of the capital of the organization immediately after the particular time, and
• (B) who immediately after the person’s last contribution at or before the particular time, had contributed to the organization amounts that were, in total, greater than 50% of the capital of the organization immediately after the making of that last contribution, or
• (ii) by a person, or by a group of persons that do not deal at arm’s length with each other, if the person or any member of the group does not deal at arm’s length with a person described in subparagraph (i); (oeuvre de bienfaisance)