Private foundation – A private foundation may either carry out its own charitable activities or it may give funds to other qualified donees, usually other registered charities. It must be established either as a corporation or a trust and not an unincorporated association. A registered charity will be designated a private foundation if 50% or more of its directors or trustees do not deal with each other at arm’s length.  Sometimes more than 50% of the capital is contributed by a person or group of persons not dealing with each other at arm’s length and who are involved with the private foundation.

Here is a short article on the legal requirements specifically for a private foundation.   Also here is our article Top Fallacies about Private Foundations in Canada in 2019

If you are concerned about compliance issues for your Canadian private foundation you might wish to contact Blumbergs to retain us to assist with your issue.