A foundation is essentially an asset holding structure but of course assets held may include shares of companies which are actively engaged in trading or investing. A foundation does have a legal personality that is recognised as an entity which can contract in its own name. This differs from a trust where the trustee (usually a trust company) is responsible. Although trusts are generally referred to by name (often referring to the settlor or the purpose of the trust) they are actually relationships whereby the trustee, an individual or a company holds assets subject to the provisions of a trust deed drawn up to reflect the wishes of the settlor. See the Zetland Guide to Trusts for further information.

The basic elements of a foundation are shown in the table below: