The creation of diaspora institutions has become a common practice around the world as states increasingly develop transnational policies to engage with citizens living outside their country of origin. For centuries, countries that experienced emigration waves chose to maintain connections with their diasporas for economic reasons. In recent decades, however, this approach has changed. Countries have invested significant resources in diaspora institutions not only for economic reasons but also because these institutions are perceived as beneficial for expanding their soft power abroad through the engagement with their transnational communities. Diaspora institutions have grown in reach (an increasing number of countries have gradually established them), focus (political and cultural, as well as economic) and aims (more diverse). This chapter explains what diaspora institutions are, the reasons for their creation, their evolution over the years, and the role they play in the relationship between home countries and their citizens living abroad. This is an important starting point for this book in order to demonstrate the binding link between diaspora institutions, external voting, and language.