This paper provides a brief overview of planning and implementing a project to fund library automation. It is suggested that: (1) proposal budgets should include all costs of a project, such as furniture needed for computer terminals, costs for modifying library procedures, initial supplies, or ongoing maintenance; (2) automation does not save money, it improves services, and the focus of the proposal should be on the latter; (3) cooperative projects are attractive, especially to local funders; (4) the parent institution should be approached first for funding; if funds are not available from this source, determine what restrictions, if any, the parent institution places on independent fund raising; (5) potential funders include public and private organizations, groups that have given to libraries in the past, and groups that provide support to institutions within the same geographical area as the library; (6) library friends groups are a source of financial support, and individual members may be able to help make contacts with funders; (7) the process of seeking external funds often clarifies library needs and provides an opportunity to educate and excite library users about the library and the potential for automation; and (8) a successful search for funding for library automation can create opportunities and contacts for future funding projects. (Contains 3 references.) (KRN)