My own definition of fairy tale goes something like this: A fairy tale is a story-literary or folk-that has a sense of the numinous, the feeling or sensation of the supernatural or the mysterious. But, and this is crucial, it is a story that happens in the past tense, and a story that is not tied to any specifics. If it happens "at the beginning of the world," then it is a myth. A story that names a specific "real" person is a legend (even if it contains a magical occurrence). A story that happens in the future is a fantasy. Fairy tales are sometimes spiritual, but never religious.
by Marcia Lane in Picturing a Rose: A Way of Looking at Fairy Tales