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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.
See also: Foundation (nonprofit). Chart of a foundation. A private foundation is a legal entity set up by an individual, a family or a group of individuals, for a purpose such as philanthropy or an object legal in the economic operation.The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets.nder Canadian law, since 1967, a private foundation is controlled by a single donor or family through a board that is made up of a majority (more than 50%) of directors at non-armâs length. It is a legally registered charity with the Canada Revenue Agency.