In a foundation agreement, the founder determines the name, registered office, purpose, assets and bodies of the foundation. He undertakes to endow the foundation with assets (cash, securities or real estate, etc.), the income from which is used to finance the purpose of the foundation. However, the foundation can also be structured as an endowment foundation. In these cases, the founder determines the period for which the foundation is to be established and how the assets are to be used in the foundation transaction.

A foundation charter, also specified by the founder, regulates the internal organization.

The foundation acquires its legal capacity through state recognition. For foundations that are to have their registered office in Thuringia, the foundation deed and articles of association must be submitted to the foundation authority. The foundation is recognized by the Thuringian Ministry of the Interior and Municipal Affairs.

Recognition is granted if the requirements under foundation law are met: A foundation established for an indefinite period can only be recognized if, among other things, the foundation capital generates income that can be expected to fulfil the purpose of the foundation in the long term. In the case of a consumer foundation, the guaranteed capital must make it appear certain that the purpose of the foundation will be fulfilled within the period of its existence.

In addition to the Thuringian Foundation Act (ThürStiftG), the foundation's work is based on the respective foundation statutes. These may contain regulations that go beyond the legal requirements and must be observed.

After recognition, the foundation supervisory authority (Thuringian State Office of Administration) must ensure that the foundation's bodies comply with the founder's will, the provisions of the articles of association and the statutory provisions applicable to foundations.