In 2005, the Phi Sigma Pi Foundation was formed. The Foundation is a 501 (c) (3) non-profit corporation. It is a separate legal entity from Phi Sigma Pi National Honor Fraternity. It has its own Board of Directors, constitution and responsibilities.

The purpose is specifically stated in its constitution as:

• The acquisition and dissemination of information and knowledge through scholarship,
• The application of professional skills and the fostering of leadership qualities by promoting and advancing the welfare of humanity, and
• The fostering of non-discriminatory, fraternal fellowship within the ranks of Phi Sigma Pi National Honor Fraternity.

The vision statement of the corporation is:

• The Phi Sigma Pi Foundation is the organization that impacts Phi Sigma Pi communities through the funding of educational and leadership programs and civic and goodwill initiatives.

This corporation was created to serve as the fundraising and philanthropic arm of the Fraternity. The Foundation exists to generate, preserve and provide financial resources for the Fraternity's educational, leadership and charitable programs. The Foundation manages the financial growth of the Fraternity's Scholarships, Grants, Funds and Gifts. All donations, including National Alumni Association memberships, are managed by the Foundation and re-distributed to the Fraternity to ensure a protected stream of revenue. Thus, individuals and Chapters who wish to donate to the Fraternity or join the National Alumni Association must mark their funds payable to the Phi Sigma Pi Foundation. The Foundation also recognizes individual and professional distinction within the Brotherhood and its communities. The Foundation focuses its efforts on friend-raising and fundraising coordinated by the members of the Foundation's Board of Directors and other volunteers and assisted by Phi Sigma Pi's National Staff.