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The Bell number $B_n$ counts all set partitions of an $n$-element finite set, with no restriction on the number of blocks of a set partition. Summing the Stirling numbers of the second kind gives $B_n={\sum }_{k=0}^{n}S(n,k)$. The first five values, for $n=0,1,2,3,4$, are $1,1,2,5,15$. In particular, $B_4=1+7+6+1=15$. ^[ref]

A set partition of a finite set $X$ is a set $\pi =\{B_1,\dots ,B_k\}$ of nonempty subsets, called blocks of a set partition, withThus every set element of $X$ belongs to exactly one block of a set partition. This is the finite counting version of a partition of a set. The blocks of a set partition are unlabelled: their subscripts help describe them, but give them no roles or order. Stanley uses this definition in his classification of counting problems.^[ref]

All possibilities for three elements. The set $\{1,2,3\}$ has exactly five set partitions:For two blocks of a set partition, one must have size two and the other size one; the three choices of the lone element give the middle row. One block of a set partition forces the whole set, and three blocks of a set partition force three singleton sets. This proves the enumeration complete, with counts $1,3,1$ by number of blocks of a set partition. Their sum is the Bell number $B_3=5$.

What information is kept? Exchanging the two blocks of a set partition in $\{\{1,2\},\{3\}\}$ leaves the same set partition; writing the tuple $(\{1,2\},\{3\})$ instead makes an ordered list, different from $(\{3\},\{1,2\})$. Exchanging elements within a block of a set partition also changes nothing. In contrast, $\{\{1,3\},\{2\}\}$ is a different set partition, because the actual memberships differ. Both have the same integer partition $2+1$ of sizes. An integer partition, or its Ferrers diagram, forgets which distinct objects were grouped together.

For four named people, $\{\{1,2\},\{3,4\}\}$ and $\{\{1,3\},\{2,4\}\}$ therefore describe different ways of making two unnamed teams, although both have sizes $2+2$. If every team must have exactly two people, only three set partitions qualify; if any nonempty team sizes are permitted, the Stirling number of the second kind $S(4,2)=7$ counts them. Naming the teams changes the counting problem again.

A set partition is useful whenever membership matters but category names do not. Define $x\sim y$ when $x$ and $y$ belong to the same block of a set partition. This is an equivalence relation, and its equivalence classes recover the set partition. Conversely, an equivalence relation supplies its set partition of equivalence classes. The beautiful simplification is that one grouping can be described by whole subsets or by a rule comparing two elements. Additional distinctions are organized by refinement of a set partition.

The empty set has one set partition, the empty collection $\pi =\varnothing$, with zero blocks of a set partition. This differs from $\{\varnothing \}$, which is forbidden because its proposed block of a set partition is empty.

For nonnegative integers $n,k$, the Stirling number of the second kindcounts the set partitions of an $n$-element finite set into exactly $k$ unlabelled blocks of a set partition. Set $S(0,0)=1$, $S(n,0)=0$ for $n>0$, and $S(n,k)=0$ for $k>n$. Also $S(n,1)=S(n,n)=1$ for $n\ge 1$. Grassl and Levin develop these counts through explicit set partitions and a recurrence relation. ^[ref]

Insert one distinguished element. For $n\ge 1$ and $1\le k\le n$, the Stirling numbers of the second kind obeyProof outline. Inspect the block of a set partition containing $n$. If it contains another element, removing $n$ leaves a set partition into $k$ blocks of a set partition; conversely, insert $n$ into any of those $k$ blocks of a set partition. If $n$ is alone, remove its singleton set and obtain a set partition into $k-1$ blocks of a set partition. The cases cannot overlap, and deletion reverses each construction. This explains the factor $k$ even though the blocks of a set partition have no names. ^[ref]

For $n=4,k=2$, start with the three two-block set partitions of $\{1,2,3\}$. Inserting $4$ into either block of a set partition gives six possibilities. The remaining possibility is $\{\{1,2,3\},\{4\}\}$, obtained by making $4$ a singleton set. Hence $S(4,2)=2\cdot 3+1=7$. The seven set partitions in the diagram comprise four with sizes $3+1$ and three with sizes $2+2$; this grouping by sizes independently gives $4+3=7$.

Three different counting questions. The binomial coefficient $\left(\genfrac{}{}{0ex}{}{n}{k}\right)$ selects one $k$-element subset. The Stirling number of the second kind $S(n,k)$ groups all $n$ distinct elements into $k$ nonempty unnamed blocks of a set partition. The power $k^n$ counts all functions to a specified $k$-element finite set, allowing some destination labels to go unused. At $n=4,k=2$, these counts are respectively $6$, $7$, and $16$. Choosing two people, making two unnamed nonempty teams, and assigning each person a red or blue label are different tasks.

When the destinations have labels. For fixed finite sets $X,Y$ of sizes $n,k$, respectively, the number of surjective functions $X\to Y$ isHere every element of $Y$ must be used. Each surjective function gives a set partition of $X$ into its nonempty preimages $f^{-1}(\{y\})$. Conversely, assign the $k$ distinct destination labels to the $k$ blocks of a set partition in $k!$ ways, where $k!$ is a factorial. For two labelled teams of four people this gives $2!\cdot 7=14$: of the $2^4=16$ assignments, exactly two use only one label. Dividing arbitrary function counts by $k!$ fails in general because unused labels can be permuted without changing a function. For example, $3^4/3!=13.5$ cannot count set partitions. The empty-to-empty function is a surjection, consistent with $0!S(0,0)=1$. Stanley gives the bijection underlying this qualification.^[ref]

For example, the inclusion-exclusion principle counts the surjections from four elements to three labelled destinations as $3^4-3\cdot 2^4+3\cdot 1^4=36$. Thus $S(4,3)=36/3!=6$. An independent check chooses the only two-element block of a set partition in $\left(\genfrac{}{}{0ex}{}{4}{2}\right)=6$ ways; the other two elements form singleton sets.

Why these numbers also occur in algebra. Classifying all functions to an $m$-element finite set by the size $k$ of their image givesFor a fixed set partition, the falling factorial $(m{)}_k$ counts assignments of distinct labels to its $k$ blocks of a set partition, and is zero when $k>m$. At $n=3,m=4$, this reads $64=1\cdot 4+3\cdot 12+1\cdot 24$. Replacing $m$ by $x$ yields a polynomial identity: both sides agree at every nonnegative integer. Thus the Stirling numbers of the second kind translate powers into falling factorials. Grouping by equal values turns a counting rule into an algebraic change of coordinates. Summing $S(n,k)$ without destination labels instead gives the Bell number.