In Indonesia, one of the factors that make worse the image of education (especially private education) are still many people who establish foundation of education just to take their own profit without maintaining of their output of it. The purpose of the establishment of the foundations which are originally social term, then they are turned into abuse of some owners because of lacking of education understanding. Before 2001 in Indonesia, esta-blishment foundations were only based on society habits and the jurisprudence of the Supreme Court, because there was no rule about it. The facts shows that people found foundations in order to be concealed behind its status  which are not only used as a place to develop social activities, religious, humanitarian, but sometimes it also aimed to enrich themselves (founders, managers and supervisors).  In line with these trends,  then many pro-blems arise, they are related to incompatible foundation activities with intentions and purposes stated in basic budget. Establishment of the foundation is legalized by notarial deed and then it approved by Minister of Law and Human Rights .It is intended to manage administrative arrangements of endorsement of a foundation as a legal entity ,well. It is important to prevent establishment of the foundation inapropriate way, based on any rule and regulation, procedurall .Keywords: Foundations, Education, Legal Entities
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