The singer and her mother, Cynthia Germanotta, will direct it.
"Together we hope to establish a standard of Bravery and Kindness, as well as a community worldwide that protects and nurtures others in the face of bullying and abandonment," Gaga said in a statement.
Dr. Bob Ross, CEO and president of The California Endowment, said "Lady Gaga will help empower and give voice to young people who find themselves overwhelmed, undersupported, disconnected, isolated, bullied, or struggling."
"This brand of leadership is sorely needed in today's world."
The foundation will be launched during the next year.