Under Dutch law a foundation is a legal person created by a legal act which has no members or shareholders. The foundation has as purpose the realisation of specific objects by using capital allocated to this purpose. The objects are stated in the articles of the foundation.
In the Netherlands a foundation is managed by a board. While a foundation is allowed to make profit, according to Dutch law it may not have as its purpose to distribute these profits to its founders, stakeholders or third parties. The foundation is only allowed to allocate funds to third parties, however, only if the payments have an idealistic or social purpose.