A foundation is an institution that pursues a goal set by the founder. As a rule, a foundationis financed by the founder’s assets. A significant part of foundation is to serve charitable purposes and so is useful for the society. There is also a possibility to establisha privatefoundation. Such foundationsserve interests of a certain circle of persons. An example is the so-called family foundation. This particular one functions for the benefit of family members of the founder. Theadvantages of the family foundationare in particular in the supply of the members, as well as in the avoidance of disputes about the inheritance and in the protection of existing assets. Under certain circumstances they also provide tax benefits. The purpose and nature of the foundation`s activities are usually set forth in its statute (articles of association). The foundation is represented by the board. The foundations are subject to state supervision because of their social importance. The foundationlaw is a vast and complex area of law. For this reason it is not advisable to proceed with the establishment of a foundation without prior legal advice. In addition, a lawyer with experience in foundationlaw can developa legally correct foundationstatute and prevent legal problems in the future.