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institution (n.)

c. 1400, "action of establishing or founding (a system of government, a religious order, etc.)," from Old French institucion "foundation; thing established" (12c.), from Latin institutionem (nominative institutio) "a disposition, arrangement; instruction, education," noun of state from institutus (see institute (v.)).

Meaning "established law or practice" is from 1550s. Meaning "establishment or organization for the promotion of some charity" is from 1707. Jocular or colloquial use for "anything that's been around a long time" is from 1837.

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Definitions of institution from WordNet

institution (n.)
an organization founded and united for a specific purpose;
Synonyms: establishment
institution (n.)
an establishment consisting of a building or complex of buildings where an organization for the promotion of some cause is situated;
institution (n.)
a custom that for a long time has been an important feature of some group or society;
the institution of marriage
the institution of slavery
he had become an institution in the theater
institution (n.)
the act of starting something for the first time; introducing something new;
institution (n.)
a hospital for mentally incompetent or unbalanced person;
Synonyms: mental hospital / psychiatric hospital / mental institution / mental home / insane asylum / asylum
From wordnet.princeton.edu