Faced with reduced public funding, many two-year colleges are seeking money from government agencies and private foundations to change procedures or develop materials in areas that would otherwise be neglected. Simultaneously, several of the most well-known public and private funding sources are becoming increasingly receptive to proposals submitted by community colleges. However, while the total resources available are considerable, they are not sufficient to fund all of the worthwhile proposals. Obtaining funding requires identifying an important problem, locating an appropriate funding source, and presenting the idea effectively. Important steps in writing a proposal include planning the project, finding funding sources, properly organizing and writing the proposal, reviewing the proposal for consistency, and submitting the proposal. This digest presents information on each step of the process, including a list of institutions and publications for assistance in locating funding sources, a description of the four main elements of a proposal, and steps to take if the proposal is not funded. (MAB)