The foundation is to be called the Amy Winehouse Foundation and Mitch said it purpose is "to help the things she loved - children, horses, but also to help those struggling with substance abuse." Member of parliament Keith Vaz will help set up the foundation, which could include a rehabilitation center.
"In this country, if you cannot afford a private rehabilitation clinic, there is a two year waiting list for help," Mitch Winehouse said in a statement. "With the help of Keith Vaz MP, we are trying to change that."
Mitch Winehouse said his daughter had gotten rid of her drug addiction some three years prior to her death on Saturday.
"The doctors said it was impossible but she really did it," he said. "She was trying hard to deal with her drinking and had just completed three weeks of abstinence."
Mitch said before his daughter's death, "She said, 'Dad I've had enough, I can't stand the look on your and the family's faces anymore.' She was not depressed... She was the happiest she has been for years."
Amy Winehouse got a clean bill of health from her doctor who examined her on Friday evening, and The Sun reported that she was having regular check-ups because her drink and drug battles had left her frail.
Amy Winehouse died on July 23 at 27 years old.
No drugs or paraphernalia were found in her Camden home in north London. An autopsy on Monday failed to determine a cause of death, which is still unknown. Additional toxicology tests have been ordered and the results are expected in about four weeks. Until then, the singer's death is classified as "unexplained" but not suspicious, according to police.
Amy Winehouse had a privately held traditional Jewish funeral on Tuesday at Edgware Cemetary in North London where close friends and family attended. She was cremated afterwards.
In an eulogy Mitch spoke to his daughter saying, "Goodnight, my angel, sleep tight. Mummy and Daddy love you ever so much" and said knowing that "she passed away happy, it makes us all feel better."