<![CDATA[Foundation schools continue to face challenges in financing education, resulting in inadequate educational facilities and infrastructure as well as low salaries for teachers and educational staff. Although various financing policies have been implemented, evidence regarding the effectiveness of financing policy innovations in foundation schools remains limited. This study aims to explore the Yapnusda/Andaluri financing policy before the institutional transition and the Andaluri financing innovation implemented after the transition to the Redemptorist Congregation, together with the impacts of both policies. This study employed a qualitative approach with a case study design using Creswell’s spiral model of data analysis. Data were collected through in depth interviews with 16 participants, including foundation chairpersons, senior teachers, and school principals, and were supported by document analysis and field observations. The findings revealed that the Yapnusda policy, which granted financial autonomy to individual schools, was unable to address financing challenges effectively. In contrast, following the transition to the Redemptorist Congregation, financing innovations through financial centralization, cross-subsidy mechanisms, and partnership development contributed positively to school development. The study concludes that these financing policy innovations effectively address financial challenges in foundation schools. The findings imply that the Andaluri financing model can serve as a policy reference for foundation schools to strengthen financial sustainability and improve the quality of educational services.]]>
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