In 1980 the U.S. and Canada have entered into a mutual agreement. The agreement was named The US-Canada Income Tax convention. Under the terms of the United States-Canada Income Tax Treaty agreement, recognized religious, scientific, literary, educational, or charitable organizations that are organized under the laws of either the U.S. or Canada will automatically receive recognition of exemption without application in the other country. U.S. organizations must be recognized as exempt under section 501(c)(3) of the Code in order to