New Delhi, June 24 -- In simple terms, it is a separate legal entity that can hold assets for the benefit of family members or specified purposes. A foundation typically has no shareholders or members and is therefore often described as an orphan structure.

The structure usually involves four key roles. The founder sets up the foundation and contributes assets to it. The council manages the foundation and administers its assets in accordance with the governing documents. The guardian, where appointed or required, supervises the council and helps preserve the founder's intent. The beneficiaries are the persons or classes of persons for whose benefit the foundation is established.

The foundation is governed by two principal documents: the...