The foundation of effective animation lies in the "12 Principles," encompassing key concepts like squash and stretch for volume, anticipation for setup, staging for clarity, timing for rhythm, and ease in and out for natural motion. Additionally, there's exaggeration for impact, secondary action for depth, solid drawing for form, and appeal for relatability. These principles guide animators in crafting engaging animations that resonate with audiences by capturing emotions, fluidity, and a sense of realism.