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Can working teachers and civil servants set up foundations?

It is not allowed if it is paid

According to the 42nd provision of the Civil Servant Law: "Civil servants who work part-time outside the agency due to work needs must obtain approval from the relevant agency and Article 53 stipulates that civil servants must abide by discipline and must not "engage in or participate in for-profit activities or hold concurrent positions in enterprises or other for-profit organizations." Article 18 of the "Interim Provisions on Punishment of Staff of Public Institutions" stipulates that staff of public institutions shall not "violate national regulations, engage in or participate in for-profit activities or hold concurrent positions to receive remuneration."

Therefore, in summary, if the public welfare fund is a non-profit organization, the part-time chairman of the leading cadre should also be approved by the relevant authorities and must not receive part-time remuneration.