In October 1982, Irene and Peter Ludwig established the „Ludwig Foundation for Art and International Understanding“. After the sudden death of her husband on July 22, 1996, Irene Ludwig established the „Peter and Irene Ludwig Foundation“. The Foundation is subject to German foundation law (according to §2, section 1 of the foundation law of the Land of North Rhine-Westphalia) and continues the activities of its predecessor. It is governed by the Board of Trustees and the Executive Board. Irene Ludwig is the Chairwoman of the Board of Trustees. The seat and administrative offices of the Foundation are in Aachen.

The goals and acitivities of the Peter and Irene Ludwig Foundation are stipulated in the statutes. According to these statutes, the Foundation’s purpose is realized in particular through the acquisition and administration of art objects, including the organization of exhibitions and the promotion of loans to public exhibitions, as well as through the financial support of the acquisition and maintenance of works of art and the promotion of exhibition activities.