In response to declining local and state appropriations for public education, community colleges have taken steps to formalize fundraising efforts by creating institutional foundations as recipients of tax-deductible contributions. Large-scale external fundraising at community colleges began as a result of the 1965 Higher Education Act and the federal funding opportunities that it offered. In a 1993 survey of American Association for Community Colleges members, 542 of 550 respondents reported having a foundation and almost 30% reported endowments in excess of $1 million in 1993. Fundraising strategies such as "friendraising," annual fund drives, planned and deferred giving, and capital campaigns are now common practices. Planned gifts are generally large contributions of accumulated assets, real estate, stocks, bonds, trusts, and paid-up insurance policies that require the oversight of a contributor's financial advisors. Another method of fundraising involves collaboration between private businesses and community colleges, in which a community college foundation and a company can develop strategies to cover the costs of training students in areas pertinent to the company. The effectiveness of any community college foundation is contingent upon the image of the college in the service area. Important elements in developing a positive institutional image include the level of involvement of college administrators, experiences of local employers with students, the responsiveness of college service to student and community needs, and the quality of education delivered by the college. (HAA)