Public foundation – A public foundation (such as a hospital foundation) generally usually spends more than 50% of its disbursements annually to other qualified donees, usually other registered charities. It must be established either as a corporation or a trust (and not an unincorporated association), and more than 50% of directors/trustees deal with each other at arm’s length. A public foundation generally receives its funding from a variety of arm’s length sources. It may carry out some of its own charitable activities similar to other registered charities, but generally they should use less than 50% of the disbursements in a year.

Here is a short article on the legal requirements specifically for a public foundation.  

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