- is established as a corporation or a trust;
- has exclusively charitable purposes;
- generally gives more than 50% of its income annually to other qualified donees, (e.g., registered charities), but it may carry out some of its own charitable activities;
- more than 50% of its governing officials must be at arm's length with each other;
- generally receives its funding from a variety of arm's length donors; and
- its income cannot be used for the personal benefit of any of its members, shareholders, or governing officials.
Starting an Organization