Unlike trusts and similar to companies, private foundations are separate legal entities.  They are registered with the names of the Founder and Foundation Council members both generally available in the publicly filed Foundation Charter.  Due to their being in the public record, nominees are generally utilised to fill these roles.  It is also quite common to appoint a supervisory body called a "guardian" or "protector" to oversee the activities of the foundation.  If such a supervisory body is appointed, it may remain private.  Additionally, similar to a common law Trust, the Foundation Regulations, By-Laws, Letter or Wishes, Testamentary Trust and any other document in support of the entity remains private.

The private foundation may be used for a host of purposes, but it is not intended to engage in commercial, for profit activities on a day to day basis.  There are no restrictions on the legal activities of a company wholly or partly owned by the Foundation however.  For this reason, many clients choose to incorporate an offshore company such as an international business company (IBC) which is wholly owned by the private foundation foundation in order to carry out any offshore investment and/or trading/commercial activities.  It is also quite common for the private foundation to be the ultimate holding entity for a number of different offshore companies established for various purposes (perhaps one or more offshore companies holding real estate, another offshore company holding an investment portfolio, one more offshore company engaged in trading/commercial activities, etc.). Activities of the Foundation may include (but are not necessarily limited to) any of the following:

• Family support
• Tax purposes
• Protection and management of assets
• For educational purposes
• Testamentary purposes
• Life Annuity purposes
• Charitable purposes
• Receive and manage capital and titles
• For the purpose of serving as guarantee or collateral
• For the management of insurance

The objects of a private foundation can include more than one purpose and could include any or all of the aforementioned purposes.

• The Foundation may provide for an orderly transfer of assets in case of a triggering event such as the death of the Founder, thus avoiding potential costly fees associated with probate.
• The existence of legal provisions regarding inheritance at the place of domicile of the founder or of the beneficiaries shall not affect the foundation or its validity, and shall not prevent the attainment of its purpose in the manner provided in the foundation charter or its regulations.
• Creditors generally have a limited amount of time to contest a transfer of money to the Foundation by the Founder or other third party associated with the Foundation and only if the transfer was intended to defraud the creditors.
• Assets and income of the Foundation are not taxable in the country of domicile
• Initial establishment and ongoing administrative fees are much more reasonable than for a Trust; especially for those donating large amounts to the Foundation.  Trusts usually charge based upon a percentage of the Trust assets rather than a flat fee.  
• The assets of the Foundation shall constitute an estate independent from the founder's personal assets for all legal purposes, and may not be seized or attached or be subject to any precautionary action or measure, except in the case of obligations incurred, or damages caused by virtue of actions taken fulfilling the purposes or objectives of the foundation, or of legitimate rights of the beneficiaries of the foundation. In no case shall such assets be affected or used to respond for the personal obligations of the founder or of the beneficiaries.
• The Founder may benefit directly from the Foundation.
• Assets may be held or distributed anywhere in the world.

All members of the Foundation Council, Protector, and any public or private servants privy to information about the affairs, activities, transactions and operations of the private foundation must maintain the confidentiality of all parties and activities of the private foundation at all times.  Violation of these Articles may result in jail time and/or fines without prejudice to the civil liabilities.