The foundation belongs to the third sector. The third sector refers to an organizational department between the state and the market. It is neither a government department nor a subordinate organization, nor a department that pursues the private material interests of the organization owners. The third sector is also called NGOs, non-market organizations, non-profit organizations and voluntary organizations.

According to the provisions of Articles 6 and 7 of the Regulations on the Administration of Foundations, the civil affairs departments of the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government are the registration administration organs of foundations. The relevant departments in the State Council or organizations authorized by the State Council are the competent business units of foundations and representative offices of overseas foundations registered by the civil affairs department of the State Council.

The third sector in China includes legal social organizations, grass-roots social organizations, quasi-social organizations and other social organizations (political, religious and religious organizations). Statutory social organizations include social organizations, private non-enterprise units and foundations.

Grass-roots social organizations include community social organizations, social organizations under the unit and rural social organizations. Quasi-social organizations include people's organizations, institutions and autonomous organizations. Social organizations in the political background of China are an important part of the third sector, but they cannot cover all the third sectors.

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.