The four main types of foundation are listed below. A foundation can be multifunctional or it can serve only one specific purpose; it all depends on your reasons for creating it.

Charitable Foundations
These are usually set up in the interests of protecting the environment, building hospitals, opening schools, etc. and offer a way to invest your money while doing something good for society and/or the environment. You could call it a long-term investment in the future of humanity.

Donations
The main purpose of this kind of foundation is to receive donations. Donations may be targeted, meaning that they can only be spent in ways that support the main purpose of the foundation. This purpose can be changed only if the donor agrees. Any conditions allowing the fund to allocate target donations differently should be negotiated before the contract is signed.

Private Foundations
These are usually established by a private individual or wealthy family as a wealth and succession management strategy. Most commonly, they are created in order to plan and control personal savings, funds and properties; to avoid forced heirship; to optimise taxes in terms of real estate property transfer, etc.

Corporate Foundations
These allow companies to structure pension funds, to manage employee benefit schemes and to accumulate and control income from interest, dividends, royalties, etc.