Every individual and legal person has the right to set up a foundation. How should the law deal with this right? What should be the requirements? How should this influence taxation? These are just a few of the issues that this publication addresses. It contains two parts: Fundamental Legal and Fiscal Principles for Public Benefit Foundations, and the Model Law for Public Benefit Foundations in Europe. Both documents have been drafted by the European Foundation Centre's (EFC) European Union Committee (EUC) and its Legal and Tax Task Forces as part of the EUC project to enhance the operating environment for foundations and funders in Europe. The purpose of the work is twofold. First, it can influence the development of new foundation laws as well as the revision of existing foundation laws at national level; and second, it contains the essential elements for any new EU legislation for foundations.