This study aims to give a deeper understanding of the facts and figures surrounding the establishment and operation of foundations in the context of taxes and tax incentives. Normally, the foundation's work goes hand in hand with the goals of the government. With this, the more the foundation works, the less work is left for the government, however, these foundations are both beneficial for the government and for the people. With the huge amount of success contributed by these foudnations, the government has offering them certain tax incentives. These tax incentives which were discussed extensively in this work greatly aids the foundation in their day-to-day operations.