Not for profit community college foundations play a major role in overall resource development. Because foundations are legally and organizationally independent of the college, they are able to promote the well-being of the college without the statutory limits imposed by the governing board and staff. Foundation money is not restricted to basic functions and permits colleges to implement programs and services not within their operating budgets. Ties with community leaders can be strengthened through foundations, while alumni and other supporters gain an opportunity to show their appreciation in tangible ways. Four phases in the development of a foundation have been identified as: (1) the development of articles of incorporation and by-laws; (2) the education of the foundation board on the college's programs; (3) the initiation of a large scale community relations campaign; and (4) the planning of fund-raising activities and other events for the coming year. An important measure of the effectiveness of a foundation is the number and amount of donations it solicits. The most effective methods of fund-raising include direct mailings, special events, annual fund campaigns, and other activities. The commitment of the college and foundation administration, however, is the key to the foundation's success. The report includes a list of references. (AJL)