The purpose of this research is to study how to raise the educational funds and allocate the budgets of the private junior colleges in Taiwan. By exploring the related theories, systems, and case analysis, the results are as following: 1.The tuition and fees are the main source for private junior colleges. 2.Grants and subsidy from the government benefit private junior colleges greatly. 3.The funds management has a large room for improvement. 4.Fund-raising is not as effective as expected. 5.The personnel costs are the major part of the hardcover of school operation. The suggestions of the researcher are listed as below: 1.The decision for tuition and fees should be made in accordance with the free market system, in order to benefit the running of the school. 2.In order to encourage contribution, the government should offer tax exempt to the contributors. 3.To increase the budget of the coming year, it should be set on the ¡§Zero Based Budget¡¨ to prevent making unnecessary items in tuition and fees for private colleges.