Ms Jackson said $500,000 sitting in an investment account was earmarked to go to the foundation, which would be set up as an independent trust.
The money dated back to original endowments donated when the gallery was established and would be used for projects that embellished the gallery - not spent on day-to-day operating costs.
Ms Jackson told the Bay of Plenty Times that the foundation would look at funding capital-type projects, such as buying land next door, underwriting international exhibitions or funding an artist in residence.
The foundation would rely on public bequests and donations, with the Auckland Art Gallery's amazing refurbishment an example of what could be achieved, she said.
Ms Jackson said donations at the gallery door were a really hard ask and reflected the cashless society.
"It has a big effect on people like us."
Despite this, visitor donations increased by nearly $2000 to reach $17,160 and was part of a big picture in which revenue rose nearly 20 per cent on budget to reach $230,000. It did not include the council's annual operating grant of $864,000
The gallery easily exceeded its target of raising 20 per cent of operating costs, achieving nearly 36 per cent.
Tauranga Art Gallery's Performance 2013-14
Visitors: 68,872 (up 8000)
School visits: 8929 students (up 823)
Exhibitions: 16 (one more than target)
Touring exhibitions curated by the gallery: 3 (100,000 visitors)
Operating surplus: $34,000
