A charity is an organization that is entitled to do only certain
kinds of activities: advance religion, advance education, relieve
poverty, and undertake activities which are generally beneficial
to the community as a whole and which the law considers charitable.
The rules relating to charitable activity are very technical.
The important distinction to remember is that all good works
are not charitable. Many things that the general public considers
to be worthwhile are not legally charitable. For example, education
activities such as operating a school would generally be considered
charitable; however, simply providing information that isn't
set in a formal and complete structure like a school probably
isn't. This is only important because a charity which is registered
under the Income Tax Act is required to follow the legal
requirements. Not doing so can mean the de-registration of the
charity in which case all its assets are taxed at 100%.
