A foundation is a type of nonprofit organization or charitable trust established primarily to support charitable activities by providing funding and grants to other organizations, institutions, or individuals. Foundations often have an endowment—a pool of assets invested to generate income—which is then used to fund their charitable programs or grantmaking activities

. There are two main types of foundations:

• Private foundations : Funded by a single individual, family, or corporation, private foundations typically must distribute a set percentage of their assets annually as grants or to operate their own charitable programs. Examples include the Bill & Melinda Gates Foundation

• Public or grantmaking foundations : These receive funding from multiple sources such as individuals, other foundations, or government agencies, and generally make grants to support community or public causes. Community foundations fall into this category

Foundations operate with a clear mission to address specific social, cultural, educational, or environmental issues. They are governed by boards or trustees who oversee their activities and ensure transparency and accountability in managing funds

. In summary, a foundation is a legally established nonprofit entity that supports charitable purposes through funding, grantmaking, or direct program operation, often sustained by an endowment and guided by a mission to create social impact