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What is a foundation? A: A foundation is a non-governmental entity that is established as a nonprofit corporation or a charitable trust, with a principal purpose of making grants to unrelated organizations, institutions, or individuals for scientific, educational, cultural, religious, or other charitable purposes.
A foundation is free of worries as it has a regular source of funding, unlike a charity. In sharp contrast to public charities, private foundations can be controlled by a single family or even an individual, for example, Bill Gates Foundation. Let us take the same example to understand the nature of a Foundation. Unlike a charity, a foundation has a fixed source of funding.