section_path: History/Nobel Foundation/Formation of Foundation
section_name: Formation of Foundation
paragraph_text: Formation of Foundation
  
  According to his will and testament read in Stockholm on 30 December 1896, a foundation established by Alfred Nobel would reward those who serve humanity. The Nobel Prize was funded by Alfred Nobel's personal fortune. According to the official sources, Alfred Nobel bequeathed most of his fortune to the Nobel Foundation that now forms the economic base of the Nobel Prize.
  
  The Nobel Foundation was founded as a private organisation on 29 June 1900. Its function is to manage the finances and administration of the Nobel Prizes. In accordance with Nobel's will, the primary task of the foundation is to manage the fortune Nobel left. Robert and Ludvig Nobel were involved in the oil business in Azerbaijan, and according to Swedish historian E. Bargengren, who accessed the Nobel family archive, it was this "decision to allow withdrawal of Alfred's money from Baku that became the decisive factor that enabled the Nobel Prizes to be established". Another important task of the Nobel Foundation is to market the prizes internationally and to oversee informal administration related to the prizes. The foundation is not involved in the process of selecting the Nobel laureates. In many ways, the Nobel Foundation is similar to an investment company, in that it invests Nobel's money to create a solid funding base for the prizes and the administrative activities. The Nobel Foundation is exempt from all taxes in Sweden (since 1946) and from investment taxes in the United States (since 1953). Since the 1980s, the foundation's investments have become more profitable and as of 31 December 2007, the assets controlled by the Nobel Foundation amounted to 3.628 billion Swedish kronor (c. US$560 million).
  
  According to the statutes, the foundation consists of a board of five Swedish or Norwegian citizens, with its seat in Stockholm. The chairman of the board is appointed by the Swedish King in Council, with the other four members appointed by the trustees of the prize-awarding institutions. An Executive director is chosen from among the board members, a deputy director is appointed by the King in Council, and two deputies are appointed by the trustees. However, since 1995, all the members of the board have been chosen by the trustees, and the executive director and the deputy director appointed by the board itself. As well as the board, the Nobel Foundation is made up of the prize-awarding institutions (the Royal Swedish Academy of Sciences, the Nobel Assembly at Karolinska Institute, the Swedish Academy, and the Norwegian Nobel Committee), the trustees of these institutions, and auditors.