Designation – Under the Income Tax Act, there are three types of designation for registered charities: charitable organization, public foundation, and private foundation. The designation of a registered charity depends on its structure, its source of funding, and the charity’s mode of operation.  A charitable organization (such as a hospital) primarily carries on its own charitable activities. It can be a corporation, or it can be established by a constitution or a trust document. A charitable organization must have an arm’s length board of directors and generally receives its funding from a variety of arm’s length sources.

see CRA's Charities and Giving glossary.   

Here is a short article on the legal requirements specifically for a charitable organization.  

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