According to Article 7 of the Regulations on the Administration of Foundations, the relevant departments in the State Council or organizations authorized by the State Council are the competent business units of foundations registered by the civil affairs department of the State Council and representative offices of overseas foundations. The relevant departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government or organizations authorized by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government are the competent business units of foundations registered by the civil affairs departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government. A foundation refers to a non-profit legal person established for the purpose of engaging in public welfare undertakings by using the property donated by natural persons, legal persons or other organizations in accordance with the provisions of these regulations. Foundations are divided into those that raise funds for the public and those that are not allowed to raise funds for the public. According to the geographical scope of fundraising, public offering foundations are divided into national public offering foundations and local public offering foundations. According to the Regulations on the Administration of Foundations, foundations must be registered with the civil affairs department before they can operate legally. Essentially, foundations are non-profit organizations.