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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.
Technically, it is a not-for-profit entity that can be controlled by a person, family or business. Sometimes private foundations are referred to as âfamily foundationsâ. They are organized exclusively for charitable, educational, religious, scientific and literary purposes under Section 501(c)(3) of the IRS Code.