A Foundation can be described as a permanent fund established and maintained by contributions for charitable, educational, religious, research, or other benevolent purposes. It can be an institution or association given to rendering financial aid to colleges, schools, hospitals, and charities and generally supported by gifts for such purposes.
It is created by a Founder who generally makes the initial gift to the Foundation. The Foundation is then run by a Foundation Council which may comprise a number of people effectively acting as Trustees and who must carry out the requirements of the Foundation according to the Foundation Charter and Law.
A Foundation can be set up for specific purposes where it might benefit a group of people without naming a specific person, it might be set up to benefit a particular family.
It can be very useful in protecting assets and securing confidentiality.