Foundations are regulated by the Foundations Act (487/2015). There is no exact definition under the Foundations Act of what a foundation is, but usually it is known as a special fund established by its founder and managed by an autonomous administration to implement a beneficial purpose specified by the founder. Foundations have neither owners, shareholders nor members. A board of trustees ensures that the foundation operates appropriately and is responsible for ensuring that the investments by the foundation are secure and profitable. According to the Income Tax Act, foundations only receive tax-exempt status if they operate “solely and directly for public benefit in a material, intellectual, ethical or social sense”.