The foundation, named after the Grammy-winning singer's hit album and single of the same name, was launched by Lady Gaga and her mother, Cynthia Germanotta.
"My mother and I have initiated a passion project," the singer said in a statement. "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."
It follows on the singer's interests in supporting gay rights and being outspoken on issues affecting youth.
The Born This Way Foundation will be work closely with the John D. & Catherine T. MacArthur Foundation and The California Endowment, both focusing on youth empowerment.
The Foundation will also work with the Berkman Center for Internet & Society at Harvard University, which focuses on the power of the Internet as a means to promote change.
The singer has harnessed the power of the Internet to attract more than 44 million fans on Facebook and 15 million followers on Twitter.