Funds can be divided into broad sense and narrow sense. Broadly speaking, a fund refers to a certain amount of funds set up for a certain purpose. For example, trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed.

A foundation refers to a non-profit legal person established in accordance with the provisions of these regulations by using the property donated by natural persons, legal persons or other organizations for the purpose of engaging in public welfare undertakings. 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. A foundation is an organization that manages funds or special funds reserved for starting, maintaining or developing a cause. Generally, it is a non-profit organization. The purpose is to promote the development of public welfare undertakings such as social science, cultural education and social welfare assistance through free funding. The funds of the foundation have a clear purpose and purpose.