Apply for Charity Registration

Public and private foundations are two types of charities that must be established either as a corporation or a trust, and registered by the Canada Revenue Agency (CRA).

What is the difference between a public and private foundation?

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Public Foundation

     · More than 50% of the people who make up the board of directors or trustees are independent from each other or operate at arm’s length.

     · It is not permissible for more than 50% of a public foundation's funding to come from one donor or a group of people who do not operate at arm’s length. The organization typically receives its funds from a variety of sources.

     · Allocates more than 50% of its disbursements every year to other qualified charities.

Private Foundation

     · More than 50% of the people who make up the board of directors or trustees are related persons or do not operate at arm’s length.

     · It is permissible for more than 50% of the funding to come from one donor, family or group of people who do not operate at arm’s length.

     · A private foundation can either engage in charitable activities of its own and/or donate to other qualified charities.