In terms of organizational nature, a fund refers to an institution or organization that manages and operates funds that are used exclusively for a specific purpose and are independently accounted for. This kind of fund organization can be an unincorporated institution (such as a special financial fund, an education award fund in colleges and universities, an insurance fund, etc.) or an institutional legal person institution (such as China's Soong Ching Ling Children's Foundation, Sun Yefang Economics Award Foundation, Mao Dun Literary Award Foundation, Ford Foundation, Hobright Foundation in the United States, etc.), or it can also be a corporate legal entity.

The beneficiaries of public welfare organizations are unspecified individuals and groups. Any individual or group can accept funding as long as it meets the requirements of its purpose and business scope. The foundation's funds come from society and serve the society. The "Regulations" define a foundation as "a non-profit legal person established in accordance with the provisions of these Regulations for the purpose of engaging in public welfare undertakings using property donated by natural persons, legal persons or other organizations." The "Regulations" stipulate that "the articles of association of a foundation must clarify the public welfare nature of the foundation and shall not stipulate content that benefits specific natural persons, legal persons or other organizations", making the foundation different from other management trust investment funds, fund management organizations for profit, and distinguish it from other non-governmental mutual benefit organizations. Since foundations have a public welfare nature, public foundations can raise funds from the public. The assets of the foundation must be protected and must be used for public benefit purposes. The "Regulations" stipulate that "the property and other income of the foundation are protected by law, and no unit or individual may divide it privately, expropriate, or misappropriate it." "The remaining property after the foundation has been canceled shall be used for public welfare purposes in accordance with the provisions of the articles of association."

The Red Cross Foundation of China (hereinafter referred to as the "Red Cross Foundation of China") is a national public foundation initiated and established by the Red Cross Society of China and registered with the Ministry of Civil Affairs. It has independent legal person status Non-profit public benefit organization. The Red Cross Foundation of China aims to promote the Red Cross spirit of humanity, fraternity and dedication, and its mission is to improve the situation of the most vulnerable groups, pay attention to and protect people's life and health, and promote world peace and progress.